Q3 2023 Newsletter

News, Newsletters, Quarterly Insights

In the domain of mergers and acquisitions (M&A), Q3 2023 reflects a pivotal moment. Deal volume and count have shown resilience – bouncing back from the anemic figures of Q3 2022 and instilling confidence in the M&A sector, as valuation expectations have shifted to “the new norm” in higher interest rate environments. Nonetheless, the revenue cycle management (RCM) sector’s maturation has had a consequential impact on transaction volume and deal values. A significant wave of interest is sweeping through the realm of generative AI, especially within the customer relationship management and business process outsourcing vertical (CXM/BPO). Investors are turning their focus to the accounts receivable management (ARM) vertical, aiming to leverage perceived industry tailwinds. Consequently, many companies are actively raising seed and Series A rounds, as they aim to seize the early opportunities presented by AI and large language models (LLMs) that offer distinct product suites that seamlessly integrate these technologies into business applications. While this trend continues, winners and losers will emerge.

However, in the world of global tech-enabled outsourced business services, generative AI is primed to play a humbling yet crucial role in the years ahead, offering more accessible technological solutions and expediting the development and replacement of point tech solutions. The utility of generative AI and large-language models promises to simplify coding and programming, ushering in faster and more agile technological advancements (i.e., no longer will there be a fear of “changing technology stacks”). Adaptability and innovation, as well as staying well-informed, are the cornerstones of success in this dynamic landscape. As business owners and investors, maintaining vigilance and seeking expert guidance are paramount for strategic decision-making in the ever-evolving M&A terrain, and we at CAS are here to help.

On the CAS front, our deal team has been quite busy. In Q3, we closed our 10th transaction of the year, which was impactful in the food service vertical with Elior North America acquiring Cater to You Food Service. There are a few additional deals we hope to be presenting in our year-end newsletter as well.

We also welcomed two new CAS part-time interns – Gregory Cook and Jeffrey Worley – both from Drexel University. During their time outside of their academic studies, Gregory and Jeffrey will be assisting the deal team.

Lastly, please find our list of the conferences members of the CAS team will be attending over the coming months below. If you will be there too, please reach out to schedule a time to connect!

Click here for the full Newsletter: CAS Q3 Newsletter 2023


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