Overview
The Administrative and Support Services industry, defined by NAICS 561 and its sub-sectors (5611 through 5619), serves as a critical operational backbone for a multitude of businesses. This broad industry encompasses office administration, facilities support, employment and staffing, travel arrangement, security services, and a range of other support functions that enable companies to focus on core competencies.
Rapid technological advancements and increasing digital transformation are key growth drivers in this sector. Companies are increasingly outsourcing non-core functions to enhance efficiency, reduce overhead, and leverage specialized expertise, fueling demand across various sub-sectors. Regulatory pressures, ranging from labor compliance to sustainability mandates further drive innovation and adaptation, particularly in areas like facility management and security services.
For M&A professionals, the industry’s fragmented structure presents significant consolidation opportunities. Strategic acquisitions can enable buyers to integrate complementary service lines, achieving economies of scale and geographic expansion while enhancing digital capabilities. Roll-up strategies are attractive as they allow acquirers to build diversified portfolios that offer end-to-end administrative solutions and robust recurring revenue streams. Overall, the dynamic growth potential and strategic synergies available within the Administrative and Support Services sector make it a compelling target for mergers and acquisitions.
Sub-Sectors
|
NAICS Code |
Industry Description |
|
561 |
Administrative and Support Services |
|
5611 |
Office Administrative Services |
|
5612 |
Facilities Support Services |
|
5613 |
Employment Services |
|
5614 |
Business Support Services |
|
5615 |
Travel Arrangement and Reservation Services |
|
5616 |
Investigation and Security services |
|
5617 |
Services to Buildings and Dwellings |
|
5619 |
Other Support Services |
Historical PE Investments in Administrative and Support Services
Although this sector remained fairly constant from 2000 through 2012, since 2013, the sector's share of total PE platform acquisitions has displayed a steady upward trend. It now represents ~4.5% of all private equity deals - most notably in the security services, building maintenance services and employment services.
Market Summary (2001 - 2025)
- 1,428 - Platform Investments
- 4,314 - Add-on Investments
- 800 - Total unique private equity firms invested
Top 5 Private Equity Firms Invested in Administrative and Support Services
Measured by the number of deals in the industry.
- Thoma Bravo (Chicago, IL)
- LDC (London, UK)
- Sun Capital Partners (Boca Raton, FL)
- One Equity Partners (New York, NY)
- Ardian (Paris, France)
Geographical Distribution
Sample Private Equity Investments in our Database
June 2024
Great Range Capital has acquired Citadel Security USA (Nixa, MO).
Citadel Security USA is a provider of security services.
June 2024
Verde Equity Partners acquired Labahn's Landscaping (Santee, CA).
Labahn's Landscaping is a commercial landscape and property maintenance company.
May 2024
BV Investment Partners completed a majority investment in CyberSheath (Reston, VA).
CyberSheath is a managed security and services provider focusing on cybersecurity, regulatory, compliance, and IT services.
April 2024
Trivest Partners made a minority growth investment in Alta Pest Control (Austin, TX).
Alta Pest Control is a provider of commercial and residential pest control services.
March 2024
Plexus Capital invested in ArmorWorks (Chandler, AZ).
ArmorWorks develops and manufactures advanced survivability solutions, including vehicle and aircraft armor systems, blast attenuating seating systems, and high value asset security systems.
How Private Equity Info sources data
As a research database and information services company serving the middle market M&A community for 20 years, Private Equity Info ingests enormous amounts of data surrounding transactions, firms, and executives. In addition, our team engages in many conversations daily across the spectrum of investors, investment bankers, and service providers to the M&A community.
This summary report was put together by analyzing the private equity investments collected by our dedicated research team which follows 127,000 key executives, 16,000 firms and 33,000 funds in the M&A industry, or 34 million total data points. Private equity investors, investment bankers and service providers in the M&A space use Private Equity Info to search, identify and download targeted lists of M&A professionals in order to connect with key executives across thousands of companies, firms and funds.
