Support Services

Our support services sector team combines an extensive range of experience across the consulting, recruitment, aviation, warehousing, transport, freight, rolling stock and ports industries. 

Members of our advisory team have worked in an operational, management or advisory capacity for a wide variety of companies in this broad sector, including:

The following 3 graphs will give private business owners a broad indication of the value of their business:

1. The Enterprise Value to EBITDA* multiples on which comparable listed companies are trading

At the end of H2 2020, the global, all market average Enterprise Value to EBITDA multiple for listed Support Services companies was 15.7x.† This is an increase on the previous six months, when listed Support Services  companies were trading on a multiple of 13.1x. Within the Support Services sector, trading multiples varied between 14.2x and 19.3x across the range of sub-sectors. Smaller businesses generally traded on lower multiples.
* EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation
† Note, the Enterprise Value to EBITDA multiples above are for listed businesses. By comparison privately owned businesses are generally valued at a discount. Listed company data was accurate at 04/01/2021.

2. The multiple of EBITDA paid by acquirers of comparable businesses

The average multiple† of EBITDA* paid globally in Support Services transactions has increased over the past six months. It currently stands at 12.6x. When reviewing these multiples we break out businesses in the range $5-150m, as they tend to have unique attributes which affect their valuation. Smaller businesses have generally been sold on lower multiples.
* EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation
†Note, the transaction multiples above are calculated from raw historic data. This typically understates profits and therefore valuations actually achieved are generally at lower multiples of “normalised” profits.

3. The volume of M&A transactions and acquisitions

In H2 2020, there were 3,122 transactions globally in the Support Services sector. This is an increase on the preceding six months, when there were 2,740 transactions. The number of transactions has remained fairly consistent over the last seven years and there are still plenty of interested buyers in the market.

For further information as to how these valuations and statistics are computed, and their impact on your transaction, please contact us.