Traditional and Agile Frameworks Drive Demand for Project Management Certifications
There are more than 1.3 million PMP holders worldwide, and the Project Management Institute estimates a need for 2.3 million professionals annually to fill project management roles. Certification is the second most sought-after training purchase after learning management systems, with 23% of organizations intending to buy it in the coming year.
Project management certifications represent a niche, highly diversified subsector of corporate training. As technology becomes more complex and global competition rises, economies have seen a widespread transition to more structured business models. Employers want to quantify employee performance, standardize best practices, and codify internal processes, and that push toward efficient operations, combined with rising job turnover, creates consistent demand for both project management skills and verifiable indicators of them.
Two things make this a distinct market rather than a line item inside corporate training. The credential itself carries measurable value, with the Project Management Institute reporting that PMP holders see a median salary premium of 16% over those without it. And the rise of Agile has created a second family of frameworks, each with its own tooling and vocabulary, that employers screen for by name. The Institute projects a need for 25 million project management employees by 2030.
How Technology Complexity, Agile Adoption, and Regulation Are Driving Demand for Project Management Certifications
Technology complexity is the underlying driver. The long-standing development of the Information and Communications Technology industry is driving market demand for highly skilled employees in technology and project management. As processes become more complex and distributed, employers need people who can sequence work, allocate resources, and document it in a way that survives audit.
Agile turned frameworks into hiring criteria. The climbing popularity of both traditional and Agile frameworks, including Scrum, XP, and Kanban, has increased demand for candidates with specific knowledge and mastery of these concepts and related software proficiency. That has driven an increase in recruitment of professionals who hold project management certifications.
Buyers are budgeting for it. Of the various industry training services and products offered, 23% of organizations report they intend to purchase certification services in the upcoming year, second only to learning management systems. That places certification ahead of consulting, courseware design, and general business skills training in planned spend.
AI and regulation extend demand into new sectors. The integration of AI and increases in regulation are expected to drive increased demand for Project Management Specialists in the healthcare and finance industries, where implementation requires both technical oversight and documented compliance.
Industry at a Glance
The global trend toward more structured business models is visible in the rise of Agile transformation services. Agile refers to an overarching philosophy toward software development that produced various frameworks, including Scrum and Kanban, each with its own technology and processes. Born to provide a lighter, time-effective, and customer-driven way of working inside the software industry, Agile has turned into a broader business philosophy, used most notably in project management. Its increased popularity has made project management certifications more valuable as an indication of familiarity with a specific framework.
PMP Certification: Growing Demand and Benefits
Certifications have proven appealing to firms and employees alike, with both the number of holders and the associated benefits rising in recent years. According to the Project Management Institute, one of the leading providers of project management certifications, there are currently more than 1.3 million Project Management Professional (PMP) certification holders worldwide. The PMP represents the most prestigious of the project management certifications, and project management oriented jobs are projected to remain resilient, with the Institute estimating a need for 2.3 million professionals annually to fill open positions.
Certifications also enhance an individual’s credibility and marketability. Employers often prioritize candidates with recognized certifications because it showcases their commitment to professional development and their ability to meet industry standards. Professionals holding the PMP experienced a median salary increase of 16% compared with those without it, which is the tangible advantage behind the growth in holders.
North America in Focus: Finance, Healthcare, and IT
The digitization of many industries will increase demand for technology-trained project managers, which is especially relevant to finance. As financial institutions face regulatory changes, technology advancements, and the need for effective risk management, project specialist skills are critical to executing initiatives successfully. Certified project managers bring a structured approach to managing financial projects, facilitating efficient resource allocation and ensuring compliance, so certification in North America’s finance industry is anticipated to be highly sought after.
In healthcare, certifications are expected to become increasingly valued given the technological advances many hospitals require, which the pandemic brought into focus. Equipped with the skills to implement structural change, project professionals can help the sector accelerate its digital transformation. Healthcare organizations are launching more initiatives to incorporate AI and machine learning into diagnostic and patient management processes, a transition that requires collaboration and oversight, so demand for certified project managers in the sector is expected to grow significantly.
IT rounds out the three. To navigate budget constraints while continuing to foster innovation, IT organizations are expected to show high demand for project management talent, since project managers play a crucial role in ensuring efficient resource allocation and mitigating risks. By obtaining certification, professionals in IT can acquire the skills and methodologies needed to work within budget challenges and still achieve project objectives.
Driving Enhanced Value for Organizations
Agile methodologies and other project management approaches now deliver measurable benefits well beyond software development. The introduction of Agile practices is associated with increased client satisfaction, improved cost efficiency, and substantial financial rewards. According to EY Parthenon, companies that embrace Agile see revenue growth ranging from 16% to 20% and EBITDA growth ranging from 8% to 11%, compared with 10% revenue growth and 6% EBITDA growth at companies that do not. Agile implementation is also associated with an improvement of 18% to 20% in time to market, a boost of 14% to 95% in productivity, and estimated cost reductions between 7% and 29%. The number of companies adopting Agile transformation has risen 88% since 2002.
M&A Overview
The project management industry is comprised of several sub-sectors, which demonstrates the diversified nature of the market. The advantages that companies specializing in this niche vertical bring in terms of integration and synergies attract a wide range of acquirers. Activity typically involves a broad mix of corporate training and management consulting firms, but other sectors including construction and transportation and IT play large roles as well. In recent years digital transformation has driven many deals, with growing relevance for digital transaction platforms and project management software companies.
2022 saw high M&A activity, building on the momentum from 2021, which marked the best year in the last decade in terms of both deal numbers and capital raised. The pandemic-induced slowdown in 2020 gave way to a robust rebound propelled by the increasing popularity of eLearning, smart working, and remote collaboration tools. Adoption of project management software and services supporting structured project management models further fueled interest in project management education and related acquisitions. That activity slowed in 2023 across both project management specific and broader corporate training deals, though project management M&A has shown a more consistent positive trend over the past three years than the broader market.
Economic Conditions
Two industry-agnostic factors set the timing for deal activity in this sector. The share of purchase price funded by debt in private equity leveraged buyouts fell from 43.0% in 2022 to 37.5% in 2023, which is the clearest measure of how much the financing environment has tightened.
Macro Conditions
Macro conditions are the broadest factor driving overall timing and growth trends of M&A activity in the corporate training sector.
- Facing broad headwinds given difficult conditions in the banking industry, and high interest rates are hurting debt markets.
- Even with those headwinds, buyer interest and valuations have proven to remain favorable for the right opportunities.
Lending Conditions
Lending is generally an industry-agnostic factor that is a primary facilitator of leveraged buyout transactions and aggressive valuations.
- Difficult debt market conditions driven by economic conditions and rising interest rates.
- Debt markets remain active, but terms are influencing asset valuations.
Notable Transactions
March 2022: Colibri Group acquired Becker Professional Education, a well-established business training and development company specializing in exam preparation for the professional accounting field. The acquisition enables Colibri to expand its services to include comprehensive accounting career solutions and strengthens its commitment to lifelong professional education partnerships. Becker’s reputation in accounting exam preparation adds a valuable asset to the portfolio, catering to candidates seeking to excel in their licensure exams, and positions the combined business as a leading provider of training, licensing, and continuing education.
October 2021: Learning Technologies Group acquired GP Strategies, a provider of comprehensive training, e-learning solutions, management consulting, and engineering services, for $394 million at 0.8x revenue and 15.1x EBITDA. GP Strategies serves a wide range of industries including automotive, financial services, and technology, with offerings aimed at enhancing workforce skills and driving efficiency for companies and government agencies worldwide. The acquisition cemented Learning Technologies Group’s position as a major player in e-learning and broadened its portfolio across a wider range of clients and industries.
| Market Capitalization ($) | LTM | EV / LTM (x) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Company | Price ($) | % of 52-Wk High | Market Cap | Enterprise Value | Revenue | EBITDA | EBITDA Margin % | 1-Yr Rev Growth | Revenue | EBITDA |
| Adecco Group | $34.94 | 86.4% | 6,082 | 9,907 | 25,062 | 1,019 | 4% | 12% | 0.4x | 9.7x |
| BTS Group | $26.39 | 73.1% | 508 | 524 | 248 | 40 | 16% | 26% | 2.1x | 13.3x |
| FranklinCovey | $44.76 | 81.8% | 596 | 611 | 281 | 45 | 16% | 11% | 2.2x | 13.6x |
| Huron Consulting | $82.89 | 94.8% | 1,557 | 1,893 | 1,221 | 138 | 11% | 24% | 1.6x | 13.7x |
| ICF International | $120.55 | 93.7% | 2,176 | 2,907 | 1,850 | 200 | 11% | 16% | 1.6x | 14.5x |
| Korn Ferry | $50.66 | 76.0% | 2,687 | 3,203 | 2,864 | 457 | 16% | 8% | 1.1x | 7.0x |
| Learning Technologies Group | $1.02 | 52.9% | 836 | 825 | 736 | 153 | 21% | 131% | 1.1x | 5.4x |
| NIIT | $0.98 | 18.8% | 132 | 133 | 42 | 2 | 5% | 36% | 3.1x | NM |
| Stride | $36.60 | 77.3% | 1,592 | 2,108 | 1,809 | 282 | 16% | 7% | 1.2x | 7.5x |
| Wilmington | $3.52 | 81.7% | 313 | 313 | 147 | 32 | 22% | 2% | 2.1x | 9.6x |
| 2U | $3.96 | 30.1% | 307 | 1,332 | 948 | 143 | 15% | -2% | 1.4x | 9.3x |
Source: PitchBook. US$ in millions.
Prices as of July 11, 2023.
EV = enterprise value. LTM = last twelve months. NM = not meaningful.
| EV / Rev | EV / EBITDA | |
|---|---|---|
| Mean | 1.6x | 10.4x |
| Median | 1.6x | 9.7x |
| Harmonic Mean | 1.2x | 9.4x |
Buyer Universe
Our team has long-standing relationships with many of these firms through recent transactions we have represented in the Education and Training industry. We have also tracked buyers that have been highly acquisitive in the project management certifications sector, particularly those that have completed notable M&A transactions. Our sector expertise and network provide us with unique insights into this buyer universe.
Select Transactions
The table below summarizes project management and adjacent corporate training transactions from 2019 through May 2023, spanning certification and IT training providers, sales and leadership development firms, management consultancies, and Agile and project management software.
| Deal Date | Target Company | Acquirer | Description | Valuation | EV / Revenue | EV / EBITDA |
|---|---|---|---|---|---|---|
| 12-May-23 | Dion Training | Alpine Investors | Provider of training services certifications intended for IT certification exam preparation. | – | – | – |
| 17-Jan-23 | Yardstick Management | Diversified Search Group | Operator of a management consulting firm intended to provide strategic comprehensive solutions to mission-driven global organizations from conception to realization. | CF | CF | CF |
| 16-Dec-22 | EGN Group | Gridiron Capital | Provider of peer group advisory services intended to serve CEOs, executives and business owners. | – | – | – |
| 01-Dec-22 | Certemy | Apis Holdings | Developer of a professional certification management platform intended to make certification simple and meaningful. | – | – | – |
| 17-Nov-22 | Paradigm Learning | Culture Partners | Provider of education and training services developed for business. | – | – | – |
| 04-Nov-22 | St Charles Consulting Group | NIIT | Operator of a consulting company intended to provide innovative and highly effective learning solutions. | $23.4 | – | 7.0x |
| 29-Sep-22 | Linkage | Society for Human Resource Management | Provider of leadership development programs and management consulting services. | – | – | – |
| 09-Aug-22 | YSC Consulting | Accenture | CEO advisory and leadership consultancy that helps organizations align leadership strategies with their business goals to achieve transformational change. | – | – | – |
| 01-Aug-22 | Infinity Consulting Solutions | Korn Ferry | Provider of flexible workforce solutions. | CF | CF | CF |
| 11-Jul-22 | Sales Empowerment Group | RFE Investment Partners | Provider of consulting services intended for companies in manufacturing, logistics, healthcare, technology, professional services and other sectors. | – | – | – |
| 06-Jun-22 | Sandler Systems | Blue Marlin | Provider of workforce training programs intended for national and global enterprises, small and mid-market businesses and independent professionals. | – | – | – |
| 06-Jun-22 | Sandler Systems | MRE Capital | Provider of workforce training program services. | – | – | – |
| 10-Apr-22 | DSG Consulting | Corporate Visions | Provider of outsourced sales training and enablement services. | – | – | – |
| 01-Apr-22 | Patina (Consulting Services) | Korn Ferry | Provider of professional services intended to help organizations accelerate their success. | $42.9 | – | – |
| 10-Jan-22 | Academy IT | Noventiq | Provider of corporate training and consulting services. | – | – | – |
| 15-Dec-21 | Scaled Agile | Eurazeo | Developer of agility software intended to be used for enterprise assessments. | $300.0 | – | – |
| 15-Oct-21 | GP Strategies | Learning Technologies Group | Provider of global workforce transformation solutions intended to improve the effectiveness of organizations. | $394.0 | 0.8x | 15.1x |
| 23-Sep-21 | Edureka | Veranda Learning | Developer of an online learning platform intended to provide skills that are needed in professional life. | $33.3 | 3.1x | – |
| 03-Aug-21 | KnowledgeHut | upGrad | Owner and operator of an education firm intended to provide premier certification training based on industry-relevant courses. | – | – | – |
| 29-Jul-21 | Axelos | PeopleCert | Provider of business practice solutions intended to make individuals and organizations more effective. | $524.5 | – | – |
| 19-Jul-21 | Simplilearn | Blackstone | Provider of online training and professional certification courses intended to help working professionals achieve their career goals. | $400.0 | 5.9x | – |
| 19-Jul-21 | Lane4 | EY | Provider of business performance development consulting services. | – | – | – |
| 12-Jul-21 | Force Management | TZP Group | Provider of sales force training solutions to the high growth technology sector. | CF | CF | CF |
| 11-Jun-21 | Global Knowledge Training | Skillsoft | Provider of IT and professional training services designed to help develop the skills individuals and organizations need to succeed. | $258.5 | 1.9x | CF |
| 12-Oct-20 | Magnolia Innovation | BPEA Private Equity | Operator of a market research and consulting firm based in Hoboken, New Jersey. | – | – | – |
| 25-Sep-20 | IC Axon | ClinicalMind | Developer of an e-learning clinical and sales training platform designed to provide science-driven training for pharmaceutical and life science customers. | $28.0 | 2.2x | – |
| 08-Jun-20 | DecisionPoint Selling | Overground Cloud Services | Provider of management consulting and training services in Charlotte, North Carolina. | – | – | – |
| 16-Jan-20 | IMPART! | Blue Sky eLearn | Provider of learning and strategy development services to its customers. | – | – | – |
| 06-Jan-20 | Rapid Learning Institute | BTS Group | Provider of management training, sales training, compliance training, and professional development. | $5.8 | 2.1x | – |
| 03-Dec-19 | Caliper Corporation | PSI Services | Provider of talent management consulting services to governmental agencies, non-profit organizations and various other businesses. | CF | CF | CF |
| 22-Nov-19 | Richardson Sales Performance | Sales Performance International | Provider of sales training programs intended to serve pharmaceutical, med tech and healthcare sales organizations. | CF | CF | CF |
| 01-Nov-19 | Miller Heiman Group | Korn Ferry | Provider of extensive training, consulting, research, and technology services. | CF | CF | CF |
| 30-Sep-19 | VitalSmarts | Leeds Equity Partners | Provider of corporate training courses focused on communication skills and leadership development. | CF | CF | CF |
| 09-Aug-19 | Disciplined Agile | Project Management Institute | Operator of toolkits for software development based in Calgary, Canada. | – | – | – |
Source: PitchBook. Valuation in US$ millions.
Multiples shown where disclosed.
EV = enterprise value. CF = confidential.
| EV / Rev | EV / EBITDA | |
|---|---|---|
| Mean | 4.8x | 12.6x |
| Median | 2.7x | 9.9x |
| Harmonic Mean | 1.9x | 10.2x |
Meet the Team Behind This Report
With over two decades of experience, Jacob is the Managing Director of Navagant, having been a key contributor since its inception. Leading as Managing Director and Co-Founder, he has played a vital role in establishing Navagant’s strong brand presence, building relationships with clients and servicing them with integrity. Demonstrating a remarkable talent for deal-making and unwavering dedication to his clients, Jacob has earned recognition as a leader in various industries, most prominently the Education and Training industry. He began his career at Rabobank International and later focused on software and direct marketing industries with Andersen Corporate Finance LLC. Then, in 2003, he founded Capstone Partners and led its Education and Training Practice until 2023, when he co-founded Navagant.
Shawn is a Founding Member and Managing Director of Navagant and brings over 19 years of experience to the firm. Shawn has led execution efforts on 70+ transactions resulting in over $3.5 billion of proceeds for clients. He assists owners of middle-market companies in achieving their strategic growth objectives, exit strategies, and liquidity goals. Formerly, he served as a Managing Director of Capstone Partners in the Education and Training practice. His investment banking career began with Raymond James, where he focused on deal execution and client development for both public and private companies. Shawn’s previous experience includes serving as an officer in the US Navy where he served as a destroyer navigator and communications officer, student naval aviator, and fleet Tomahawk cruise missile officer.
Caleb is a Vice President at Navagant. Previously, Caleb was an Associate at Capstone Partners, and prior to Capstone he was an Analyst for CRI M&A Advisors, the investment banking subsidiary of a Top-20 regional accounting firm. He holds a BBA in Financial Management from Charleston Southern University.
Endnotes & Sources
- Training Magazine. 2022 Training Industry Report. November 16, 2022. https://trainingmag.com/2022-training-industry-report/
- Project Management Institute. Talent Gap: Ten-Year Employment Trends, Costs, and Global Implications. 2021. https://www.pmi.org/learning/careers/talent-gap-2021
- Project Management Institute. Earning Power: Project Management Salary Survey and 2022 Jobs Report. Accessed July 10, 2023. https://www.pmi.org/learning/careers
- EY Parthenon. How to Reap Rewards by Improving Agile Software Development Practices. Accessed July 5, 2023.
- Project Management Institute. Global Project Management Job Trends 2023. February 2023. https://www.pmi.org/learning/careers/global-job-trends-2023
- Zippia. 16 Amazing Agile Statistics: What Companies Use Agile Methodology. June 28, 2023. https://www.zippia.com/advice/agile-statistics/
- US Bureau of Labor Statistics. Occupational Employment and Wages: Project Management Specialists. April 25, 2023. https://www.bls.gov/oes/current/oes131082.htm
- PitchBook Data. Project Management and Corporate Training M&A Activity, Private Equity Deal Activity, and Public Comparable Company Data. 2018 to 2023.