Corporate Advisory Solutions attributed dealmaking across the tech-enabled outsourced business services sector, including the accounts receivable management industry, to a set of consumer, regulatory, and technology trends in a report summarizing the first half of 2026.
The report described a seller-favorable environment marked by strong demand from strategic and financial buyers and limited supply of high-quality assets. CAS said companies with revenues above $10 million, a niche focus or defensible position, and no prior institutional capital continue to command valuation premiums. It cited record levels of private equity dry powder and COVID-era vintage funds nearing the end of their investment periods as drivers of sponsor interest across both platform and add-on opportunities.
In ARM, CAS tied placement volumes to elevated consumer debt. Credit card balances 90 or more days delinquent pushed above 13%, which the report called the highest level since 2011, with average current credit card debt in the $6,500 to $6,700 range. The report highlighted increased use of the legal collections channel, citing rising consumer debt lawsuit filings across sampled states and an approximately 70% judgment award rate. CAS said artificial intelligence and machine learning (AI/ML) adoption remained early stage, with survey data showing most participants still evaluating third-party solutions and letter-based outreach still prevalent.
In healthcare RCM, CAS pointed to rising claim denial rates, driven by expanded prior authorization requirements and payers deploying AI to flag or reject claims before human review. It cited a projected 22% decline in ACA marketplace enrollment in 2026 tied to the One Big Beautiful Bill and other federal policy changes, which it said is shifting payer mix toward self-pay and increasing bad debt. The report cited research indicating 97% of healthcare organizations already outsource at least one RCM function, with 70% planning to expand outsourcing.
In BPO/Contact Centers, CAS said AI/ML uncertainty weighed on M&A while capital raising stayed resilient among AI/ML-native providers. The report cited AI-driven workforce displacement in markets such as the Philippines and India, faster projected growth in knowledge process outsourcing than in traditional BPO, and a shift toward nearshore and Africa-based delivery centers, with live agent costs cited as the primary barrier to scale.
CAS said it expects strong transaction activity into 2027 as strategics and sponsors lean on M&A for growth, while noting continued softness in the broader software space amid AI/ML-driven scrutiny.
