Digital transformation isn’t new to the professional business services space, but experts agree that this trend is not only here to stay — it’s going to lead the future. The pandemic played a role in escalating the rate at which professional services firms adopted technology and embraced automation.
Professional services are rooted in fulfilling the needs of the client. Previously, many professional service firms were able to rely on face-to-face client meetings and in-person interactions. But today, clients want the best bang for their buck and may even need to cut down on non-essential spending as a result of the pandemic. That means professional services firms need to rethink their service offerings to better suit clients’ needs.
The professional services industry is already paving the way toward changes in hiring. Companies like Salesforce and Dropbox have announced a flexible, new way of working, which opens the door for hiring talent across the globe — even in locations outside of office headquarters.
*According to Wrike’s Professional Service Trends to Look Out for in 2021
FCL Industry Coverage
- Construction and Engineering
- Consulting Services
- Legal Services
- Media and Information Services
- Transportation & Logistics
Since Q4 of 2022, M&A activity in the sector has been slowing down, with 5,125 deals closed in Q1 2023, a 51% decrease from 10,355 in Q1 of 2022. This was driven mostly by a decrease in Private Equity and Venture Capital deals. We can however see a positive trend in median post valuation in 2023 with Q1 being 36% higher than Q4 of 2022 with a median post valuation of $27.30 million.