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Court Reporting Acquisitions in 2023

This article provides a summary of mergers and acquisitions transactions in the court reporting sector in 2023.  We try to update this post every month as we close more deals and learn of other deals that have closed in the sector.

Court Reporting Consolidation

The court reporting and litigation support sector is experiencing a long-term consolidation by several large national players and about a dozen smaller regional companies.

Here is a summary of the factors driving this long-term consolidation.

1. Professional Shortage: There’s a notable shortage of skilled court reporters, partly due to an aging workforce and fewer new entrants in the field. Larger firms, through consolidation, can better manage this talent crunch by pooling resources and offering more attractive career paths.
2. Technological Advancements: The court reporting industry, like many others, is rapidly evolving due to technology. Advancements in digital recording, real-time transcription, and even AI-powered transcription services are reshaping the landscape. Firms are consolidating to better invest in and leverage these technologies. It’s a bit like the tech trends we see in other sectors, where staying ahead of the curve is crucial.
3. Increasing Demand for Legal Services: There’s a growing demand for legal services, partly due to increased regulatory complexities and a more litigious society. This demand extends to court reporting services, which are essential for legal proceedings. Larger firms, through consolidation, can handle a higher volume of work more efficiently.
4. Economies of Scale: By consolidating, court reporting firms can achieve economies of scale. This means they can offer services at a lower cost while improving quality. It’s a classic business move – think of it like big tech firms merging to streamline their operations and cut down on expenses.
5. Market Fragmentation: The court reporting industry is pretty fragmented, with many small players. This fragmentation makes it ripe for consolidation, as larger firms can acquire smaller ones to expand their market share and client base.
6. Diversification of Services: The large national court reporting firms are diversifying their services to include things like legal videography, translation, litigation consulting, eDiscovery, and document management services. By consolidating, firms can offer a broader range of services to their clients, making them a one-stop shop for legal support services.
7. Client Expectations: Clients are increasingly expecting more comprehensive and sophisticated services. Larger, consolidated firms are often better equipped to meet these expectations with their broader range of services and technological capabilities.

Due to these long-term factors, we anticipate this consolidation to continue for the foreseeable future.

The volume of mergers and acquisitions in the court reporting and litigation support sector has seen a marked slowdown in activity in 2023.  Despite the decrease in transaction volume and a significant increase in interest rates, valuations for court reporting firms and litigation support companies have remained strong in 2023.

Transactions in the Court Reporting Sector in 2023

Below is a summary of the mergers and acquisition transactions in the court reporting and litigation support in 2023.  This list is updated every month.

In addition to these publicly announced transactions we estimate there are an another dozen or so transactions involving smaller court reporting firms that were acquired by local competitors or individual investors.  These small transactions are typically not announced in formal press releases.

Other Articles You May Find Helpful

You may also find our other articles related to court reporting helpful.

Court Reporting & Litigation Support Industry is Ripe for Consolidation

What’s My Court Reporting Firm Worth? – Simple Rules of Thumb updated for 2023

Jackim Woods’ Court Reporting Practice Group

About the Author and Jackim Woods & Co.

Rich Jackim is an attorney, investment banker, and entrepreneur. For the last 25 years, Rich has been providing boutique investment banking services to small and middle-market companies in the court reporting and litigation support sector.

In addition to running a successful M&A advisory firm, Rich founded a successful training and certification company called the Exit Planning Institute, which he sold to a private family office in 2012.

Rich is also the author of the critically acclaimed book, The $10 Trillion Dollar Opportunity: Designing Successful Exit Strategies for Middle Market Businesses.  It became an Amazon best-seller in the business consulting category the year it was published.

Jackim Woods & Co offers skilled mergers and acquisitions advisory services to court reporting firms, digital reporting and videography firms, court reporting schools, eDiscovery companies, and legal contract staffing companies in both sell-side and buy-side transactions. Jackim Woods & Co has arranged over 100 successful transactions, ranging in value from less than one million to more than eighty million dollars.

If you own an court reporting firm or litigation support company and are interested in exploring your options, I would welcome an opportunity to speak with you. There is no cost or obligation to you and all discussions are completely confidential.

Feel free to contact me at 224-513-5142 or rjackim@jackimwoods.com.