Private Equity Trends in Professional, Scientific and Technical Services

Overview

The Professional, Scientific, and Technical Services industry is a cornerstone for innovation and operational support across sectors, including healthcare, technology, and finance. Spanning legal services, IT consulting, R&D, advertising, and management consulting, this diverse sector addresses key needs such as compliance, technological advancement, and market expansion. 

Demand for expertise in digital transformation, data analytics, and regulatory compliance is rising rapidly. Companies increasingly seek advanced IT solutions like AI-driven systems, cybersecurity, and cloud services. Meanwhile, R&D-intensive sub-sectors are responding to the need for breakthrough technologies, particularly in biotechnology and advanced engineering. 

M&A activity within this industry is driven by the need to consolidate fragmented markets, access cutting-edge innovations, and expand service offerings into high-growth sectors. Acquirers often pursue targets to secure specialized expertise, achieve vertical integration, and gain access to proprietary technologies. In addition, advertising and design firms are attractive due to the growing importance of digital marketing and branding in competitive markets. For M&A professionals, the Professional, Scientific, and Technical Services industry offers opportunities to leverage innovation, optimize supply chains, and scale niche expertise. As global trends in technology, compliance, and consumer engagement accelerate, this sector is poised for sustained interest from strategic and private equity buyers alike. 

Sub-Sectors

Historical PE Investments in Professional, Scientific and Technical Services

From 2000 to 2014, the percentage of PE platform acquisitions in Professional, Scientific, and Technical Services sector remained relatively stable, fluctuating between approximately 7% and 9%. 

After 2014, economic recovery and growth have increased the investment capacity and appetite of private equity firms in this sector. 

The period from 2017 to 2022 saw even more notable growth, with the percentage of acquisitions climbing steadily from around 10% to more than 14%. This is largely because many companies in the Professional, Scientific, and Technical Services industry exhibit financial and business model attributes that PE firms prefer. Namely, low CapEx, high growth, high margin, highly scalable companies that offer a service rather than a product. 

This trend is expected to continue as the sector benefits from the ongoing advancements in technology and the increasing demand for specialized technical services which are likely to sustain and potentially accelerate growth. 

Market Summary (2001 - 2024)

• 12,319 - Platform investments
• 9,178 - Add-on investments
• 3,036 - Total unique private equity firms invested

Top 5 Private Equity Firms Invested in Professional, Scientific and Technical Services  

Measured by the number of deals in Publishing Industries (except Internet).

1. OrbiMed Advisors (New York, NY) 
2. Insight Partners New York, NY) 
3. Warburg Pincus (New York, NY) 
4. H.I.G. Capital (Miami, FL)  
5. Vivo Capital (Palo Alto, CA) 

Geographical Distribution

Sample Private Equity Investments in our Database 

May 2024 

Tailwind Capital invested in  GrayMatter (Pittsburgh, PA). 

GrayMatter is a provider of industrial automation and intelligence solutions. 

May 2024 

Renovus Capital Partners acquired a majority stake in Case Works (Austin, TX). 

Case Works is provider of tech-enabled litigation support solutions. 

April 2024 

Serent Capital completed a growth investment in  Medical Informatics Engineering (Fort Wayne, IN). 

Medical Informatics Engineering is a provider of health IT software and systems for occupational health. 

February 2024 

Caisse de dépôt et placement du Québec invested in Levio(Québec City, Canada). 

Levio is a digital native consulting firm providing services covering all aspects of digital transformation, from business strategies to information technologies (IT), to organizational management, including cybersecurity, data valorization, artificial intelligence and cloud computing. 

January 2024 

Artinia Group made a strategic growth investment in Canvas (Huntsville, AL). 

Canvas is a provider of engineering, technical, and lifecycle management services to U.S. defense agencies. 

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.