Deal activity within the UK professional and business services (PBS) industry remained robust throughout 2025, reflecting the industry’s resilience and adaptability in a challenging economic environment. As predicted in our 2024 review, private equity (PE) firms continued to drive significant deal activity within the professional services sector, particularly in legal services, with 18 PE investments into law firms and more underway. The industry’s continued appeal to both UK and international PE equity firms has been rooted in its recurring revenue streams, consistent annual growth and broad client base.

Across the professional services sector, property consultants and advisory practices attracted interest from investors. However, it was the large and highly specialist markets of legal and accountancy that offered, and continue to offer, significant potential for consolidation through acquisition. Once a platform is established, investee companies can grow quickly – expanding teams, widening service lines and improving efficiencies to increase margins. The most attractive targets combine strong specialist expertise with clear service differentiation and the ability to recruit and retain high-performing teams.

For the business services sector, demand for outsourcing remained strong, with particular emphasis on organisations with recurring maintenance revenues. There was strong buyer interest where compliance played a central role, with a number of consolidators competing for the same assets. This trend was particularly clear among businesses specialising in testing, certification and inspection services.