Corporate Advisory Solutions reported that deal activity in the tech-enabled Outsourced Business Services (OBS), which includes accounts receivable management, remained strong in the second quarter of 2025, as competition for premium assets and the rise of AI-driven strategies continue to reshape the landscape.
By the numbers:
- $5.3 billion: Total announced deal value across 55 transactions tracked by CAS in the second quarter represented a modest uptick from the first three months of the year and consistent with last year’s activity.
- Transactions: Closed by CAS in Q2 (five total in the first half of 2025), including TrueAccord’s acquisition of Sentry Credit and Caine & Weiner’s purchase of CCOC.
- ~11x EV/EBITDA: Median valuation multiples in the ARM industry, supported largely by large debt buyers.
Why it matters: The M&A environment remains a seller’s market. Strategic and private equity buyers are aggressively pursuing add-on deals, particularly in the lower middle market, as rising tech costs and compliance pressures push smaller firms toward consolidation.
AI is playing a larger role: venture-backed startups are beginning to acquire established platforms to shorten enterprise sales cycles and scale distribution. CAS expects this “AI roll-up” model to drive increased deal flow in coming quarters.
Key industry trends:
- Accounts Receivable Management (ARM): Rising credit card, auto, and student loan delinquencies, which are now above pre-pandemic levels, are fueling paper supply. Jefferson Capital’s IPO in June, the first in the space in 20+ years, signals growing investor appetite.
- Healthcare RCM: The new One Big Beautiful Bill is adding administrative burdens and pushing providers toward outsourcing. Consolidation and AI-enabled efficiencies are accelerating across the sector.
- BPO/CX: The proposed Keep Call Centers in America Act could raise costs for providers while bolstering domestic jobs. Meanwhile, AI adoption is moving beyond Tier-1 tasks, pressuring traditional outsourcing models.
The outlook: CAS sees a steady M&A pipeline for the remainder of 2025, though it notes “signs of softening” in the broader economy. Rising delinquencies, slower consumer spending, and state-level regulatory divergence could reshape market dynamics.
