YTD North American M&A volume of 2,714 transactions and total deal value of $361.1 billion.
Within the Business Services sector, there were 208 transactions in Q3 2020, compared to 261 transactions in Q3 2019, representing a 20% decrease from last year. The sector is on pace for 829 total transactions in 2020 compared to last year’s total of 1,058—a substantial decrease of 22% largely due to effects of COVID-19.
Public Company Performance
Public company EV/EBITDA multiples slightly bounced back toward 2019 levels with an average Business Services multiple of 8.4x in Q3 2020 compared to an average multiple of 7.9x in Q2 2020. The average EV/EBITDA multiple in Q3 2019 was 10.2x.
After Q3 2020, Facilities Services and Logistics are the only two out of six Business Services sub-sectors that have outperformed the S&P 500 over the past five years.