Industry Report: Professional Services Q4 2025 [FOCUS]

Key Report Highlights

• Professional Services M&A Up 5% in 2025, Led by Accounting and Legal
  A total of 639 professional services M&A transactions were announced in 2025, a 5% increase from 2024. Growth was driven by the Accounting, Tax & Advisory and Legal Services sectors, while Staffing, Recruiting, and HCM Services saw modest declines. Private equity-backed platforms like Baker Tilly, Aprio, and Citrin Cooperman were among the most active consolidators.
• PE-Backed Platforms Drive Recurring Deal Flow Across Sub-Sectors
  Private equity continues to fuel consolidation. In Accounting, serial acquirers like Baker Tilly and Citrin Cooperman completed multiple transactions. In Legal Services, Odyssey-backed Magna Legal Services aggressively expanded litigation support, while law firm combinations (e.g., Hogan Lovells + Cadwalader; Perkins Coie + Ashurst) reflect a push for broader geographic and service coverage.
• Sector Tailwinds Include Aging Ownership, Recurring Revenue, and Specialization
  Across all segments, buyers are prioritizing recurring revenue, industry specialization, and scalable talent models. In particular, thousands of professional firm owners are approaching retirement age, creating prime acquisition opportunities. Niche staffing, outsourced HR, and consulting platforms remain especially attractive for both strategic and PE buyers.
• Human Capital Management and Consulting See Vertical-Specific Consolidation
  In HCM, firms like OneDigital and Engage PEO expanded with acquisitions of regional PEOs and HR platforms. Meanwhile, consulting deal activity was led by buyers seeking growth strategy, data intelligence, and tech transformation capabilities—e.g., Stout’s acquisition of Pointe Advisory and F2 Strategy’s purchase of HBMJ.
• Legal Sector Undergoes Rapid Structural Change and PE-Driven Expansion
  The legal industry continues to evolve through M&A, as PE-backed litigation support firms (e.g., Veritext, Proceed) consolidate back-office services like court reporting, e-filing, and records retrieval. Simultaneously, traditional law firms are merging to build multi-regional, multidisciplinary platforms, with global combinations pushing into Top 20 global law firm territory.

FOCUS Investment Banking is a national middle market investment bank providing M&A advisory, capital raising, and corporate finance services to privately held companies. Founded over 40 years ago, the firm specializes in advising lower middle market businesses—typically with $5 million to $300 million in revenue—across a broad range of industries including aerospace & defense, healthcare, technology, manufacturing, business services, and automotive.

With a team of seasoned professionals who bring deep operating and transactional experience, FOCUS delivers partner-led, tailored guidance on sell-side and buy-side M&A, growth capital, exit planning, and valuation services. The firm combines industry expertise with global reach through its affiliation with M&A Worldwide, offering access to international buyers and investors.

Headquartered in Washington, D.C., FOCUS also maintains offices in Atlanta, Chicago, Los Angeles, Miami, and Dallas. Securities transactions are conducted through FOCUS Securities LLC, member FINRA and SIPC.

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