Market research

Market Overview: Management of Companies and Enterprises

Explore the companies and market structure behind the opportunity.

NAICS 5511

Market Definition

The Management of Companies and Enterprises industry, classified under NAICS 5511, encompasses establishments primarily engaged in managing companies and enterprises in the form of holding companies. These organizations usually control and manage their subsidiaries' day-to-day operations.

Total Addressable Market (TAM)

As of the most recent available data, the total addressable market for the Management of Companies and Enterprises industry is approximately $1.5 trillion, with a compound annual growth rate (CAGR) of 4.2%.

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Precedent Transactions

Date

  • 06/2024
  • 03/2024
  • 03/2024
  • 02/2024
  • 12/2023

Acquirer

Target

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Acquisition Value

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TEV

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Deal type

  • Corp
  • Corp
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  • Corp
  • Corp

Employees

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Annual Growth

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Source

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VC Deals

Date

  • 07/2024
  • 07/2024
  • 07/2024
  • 07/2024
  • 07/2024

Investor

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Company

Amount Raised

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TEV

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Employees

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Annual Growth

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Round

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Private Comps

Company

Rev Est

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Employee Est

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Annual Growth Est

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Total Capital Raised

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Lead Investor/Owner

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Public Comps

Industry overview

  • Industry Mean
  • Industry Median

EV/Rev

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EV/EBITDA

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EV/Gross Profit

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EBITDA Margin

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Gross Margin

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Market Cap

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EV

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Revenue

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EBITDA

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Gross Profit

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Growth

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Top Comps

EV/Rev

  • 2.5x
  • 1.9x
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EV/EBITDA

  • 14.1x
  • 13.2x
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EV/Gross Profit

  • 8.6x
  • 9.4x
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EBITDA Margin

  • 14.8%
  • 9.8%
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Gross Margin

  • 35.8%
  • 37.8%
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Market Cap

  • $8.7B
  • $2.6B
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EV

  • $11.9B
  • $4.5B
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Revenue

  • $4.3B
  • $2.4B
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EBITDA

  • $700M
  • $343M
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Gross Profit

  • $1B
  • $622M
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Growth

  • 46.6%
  • 9.0%
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Fragmentation

by Top Companies

Category

  • Rest of Market
  • Top Companies

Market Share %

  • 19
  • 81

by Ownership

Category

  • # of Companies

Public

  • 9

PE Backed

  • 14

VC Backed

  • 1

Private Subsidiary

  • 12

Independent

  • 154

# of Companies

by Ownership

Category

  • # of Companies

Public

  • 120588

PE Backed

  • 70219

VC Backed

  • 3629

Private Subsidiary

  • 11418

Independent

  • 65966

% of Employees

M&A Trends - Financial Sponsors

M&A Events

Category

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      Financial Sponsors

      Financial Sponsors

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      Deals In Market

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      Total Deals

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      M&A Trends - Strategic Acquirers

      M&A Events

      Category

      • 2014
      • 2022

      # of M&A Events

      • 1
      • 1

      Strategic Acquirers

      Strategic Acquirers

      • VSP Vision Care, Inc. [link: https://vsp.com]
      • Capmark [link: https://capmark.com]
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      Deals In Market

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      Total Deals

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      Funding Trends

      No data available.

      Most Active VC Investors

      Financial Sponsors

      • Veg Capital [link: https://vegcapital.co.uk]
      • Pepins [link: https://pepins.com]
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      Deals In Market

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      Total Deals

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      Segmentation

      The industry can be segmented into the following categories:

      • Holding Companies: Entities that control equity interests in other companies.
      • Management Services: Enterprises providing strategic and organizational management services.
      • Corporate Offices: Centralized administrative offices usually managing back-office operations.
      • Private Equity Firms: Firms investing in companies at different stages.
      • Investment Firms: Companies providing other forms of investment including venture capital.

      Growth Drivers

      Key growth drivers for the industry include:

      • Technological Advancements: Adoption of AI and data analytics for strategic management decisions.
      • Economic Growth: Increased market valuations drive M&A activity.
      • Globalization: Expansion of business operations across borders.
      • Regulatory Changes: Updates in regulations which facilitate business operations.
      • Access to Capital: Easier access to financing through various channels.

      Risks

      The industry faces several risks, including:

      • Economic Downturn: Recessionary trends can negatively impact market valuations.
      • Regulatory Scrutiny: Increased regulation and compliance costs.
      • Competitive Pressure: High competition within the industry.
      • Cybersecurity Threats: Risk of data breaches and cyber-attacks.
      • Market Fluctuations: Uncertainty in stock and financial markets.

      Value Chain

      The value chain of the industry includes several critical components:

      • Corporate Strategy: Strategic planning and oversight.
      • Financial Management: Investment and capital allocation.
      • Operational Efficiency: Streamlining business processes.
      • Compliance: Adhering to regulatory requirements.
      • M&A Activity: Identifying and acquiring target companies.

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