Successful corporate administration businesses have become a key investment area for private equity firms the world over, owing to strong predictions in EBITDA growth as well as excellent cash generation and annuity income potential. Moreover, the sector is increasingly seeing larger competitors purchase smaller firms in key markets, and similar-sized firms coming together in an attempt to gain greater efficiencies and grow their market share.
In Ireland alone, recent years have seen numerous M&A deals take place within the sector. Several smaller corporate services businesses have been swallowed up by larger international players, as have the Irish corporate administration divisions of global banking conglomerates. Certainly, IQ-EQ Ireland has followed a similar path.
So as the pool of administration providers continues to fuse and strengthen on a global scale, where does Ireland stand in terms of jurisdictional priorities?
In the latest issue of Business & Finance, I outline the key drivers of consolidation in the corporate administration sector and discuss why firms are placing increasing value on having Ireland within their jurisdictional spread.