Business Services: Q1 2025 Report
Overview
The first quarter of 2025 brought continued momentum to the M&A market, with steady deal flow and strong buyer interest across a range of subsectors. For owners of small to medium-sized businesses, particularly those offering outsourced B2B services—from staffing and facility management to consulting and IT support—this is an opportune time to evaluate strategic options. Private equity firms and strategic acquirers remain active, seeking high-quality businesses with recurring revenue, specialized expertise, or regional scale. In this report, we break down key trends, notable transactions, and what it all means for business owners considering a sale, partnership, or growth capital investment.
Within professional services, buyers are targeting firms with specialized expertise in areas such as accounting, engineering, consulting, legal support, and marketing. Businesses with strong client relationships, recurring or retainer-based revenue models, and scalable operations continue to command premium multiples.
Meanwhile, the infrastructure services sector—including engineering & design, environmental services, construction management, and outsourced municipal or utility support—saw heightened interest fueled by federal infrastructure spending and long-term demand for public and private capital projects. Buyers are particularly focused on firms with experienced management teams, local or regional contract footprints, and exposure to high-growth segments such as clean energy or transportation.
In this report, we highlight key trends, notable Q1 transactions, and what business owners should be thinking about now if they are considering a sale, recapitalization, or growth strategy in 2025.
Business Services M&A Activity
Infrastructure Services
- M&A activity in the Business Services sector rose 18% in Q1 2025, with 200 transactions reported versus 165 in Q4 2024. The most notable increases came from Diversified Support Services (+43%) and Environmental & Facility Services (+22%), signaling renewed interest in essential outsourced services.
- Water treatment and remediation services remain highly active, driven by ongoing consolidation. Clearwater Industries, backed by EAI (Economic Alternatives, Inc.), acquired Artech Water Systems of Madison, CT—strengthening its East Coast presence. This follows EAI’s 2024 acquisition of Clearwater as part of a broader strategy to expand water treatment capabilities nationwide.
- Ruppert Landscaping continues its strategic expansion, completing two acquisitions in January 2025. The Maryland-based commercial landscaping firm added Lawnscapes, Inc. in Panama City, FL, and Ocean Woods Landscaping, Inc. in South Carolina, enhancing its footprint in the Southeast.
- Mechanical and facility engineering services saw continued momentum, with PremiStar entering the Illinois market through the acquisition of Dahme Mechanical’s HVAC division. The company has now completed eight acquisitions over the past three years—five of which closed in 2024—underscoring its aggressive growth strategy in the facility services sector.
Professional Services
- Professional Services deal activity remained strong in Q1. Acquisitions of consulting firms and accounting, tax and advisory firms represented the majority of deal announcements in the quarter.
- More than half of the buyers in the professional services sector were private equity or private equity backed platform companies
- The most active acquirers in Q1 included Baker Tilly (3 deals), Veritext (3 deals), Ampleo (2 deals), Aprio (2 deals), and SD Mayer & Associates (2 deals)
Mr. Calogero has deep experience in Supply Chain and Manufacturing Industries. Prior to FOCUS, he was the Vice President of Operations for McElroy Manufacturing, Inc., an OEM with revenues of $100M and 250 people. Under his leadership, he leveraged Lean Manufacturing and Advanced Manufacturing technologies to transform the operations of the company. He drove an increase of Gross Margin by 700 basis points, while improving On-Time Performance from 62% to 92%, reduced turnover by 60%, with world-class safety and quality.
As the COO of Coastal Sunbelt Produce, he was responsible for operations, supply chain management, street sales, and asset velocity for this Private Equity backed $300M, 500-person Food Manufacturing and Distribution firm, delivering a 100-basis point increase to EBITDA in the first year. He has also worked in the Aerospace sector, launching his career at Lockheed Martin and Boeing in Finance and oversaw $3B in helicopter and weapons systems contracts. He also led a consulting business in Michigan that transformed product development for Ford, General Motors, and several Tier 1 & 2 Automotive suppliers.
He also worked extensively in Management Consulting and Government Information Technology. He helped transform over 200 companies in Manufacturing, Distribution, Hospitality, Technology, Semiconductor, Life Sciences, and Hospitals/Healthcare. He founded a management consultancy, XSell Solutions, improving performance in Sales, Supply Chain, and Production. He also served as the President of Tefen USA. For this 100 person Global Management Strategy and Operations Consulting firm, he directed all activities within North America and the Far East. Customers included Schneider Electric, Massachusetts General Hospital, Baxter Healthcare, Abbott Laboratories, Applied Materials, Amgen, and Pfizer.
His career in Government IT included Senior VP of Sales and Strategy at Robbins-Gioia, a 600-person program management and business process outsourcing firm, with clients across the DOD and Federal Civilian Agencies. He also served as the Business Manager for Computer Sciences Corporation, leading systems integration programs for the Department of Interior and Department of Commerce.
With an MBA from The George Washington University and a BA from Loyola University Maryland, he is an accomplished presenter, including keynote presentations in Healthcare and National Manufacturing Week conferences, to name a few. Mr. Calogero is a Member of the Young Presidents’ Organization Gold Washington DC/Baltimore Chapter and past Chairman of the YPO DC/Baltimore Chapter.
Mr. Calogero holds FINRA Series 63 and Series 82 licenses.
