Management Consulting Mergers and Acquisitions Report 2017 by Equiteq - Succession Plus

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Management Consulting Mergers and Acquisitions Report 2017 by Equiteq

Succession and Exit

Management Consulting Mergers and Acquisitions Report 2017 by Equiteq

By , June 4, 2017
management-consulting

According to the recently released Equiteq annual Global Consulting M&A Report ( always excellent data ) , several relevant trends appear:

 

Key highlights:

  • In 2016, the number of global transactions reached a 9-year high of 2,906, with multiples averaging a 10-year high of 1.1x revenue, and 8.6x EBITDA
  • Cross-border activity remained strong, accounting for 28% of all deal volumes and 33% of deals in the $10m to $500m value range
  • 397 deals were completed in Asia-Pacific, with an average valuation of $14.5m and average multiples of 1.4x revenue and 7.2x EBITDA
  • In total, there were 130 deals in Australasia in 2016, accounting for 33% of consulting M&A volumes in the APAC region

 

Management Consulting Insight:

  • Exceeding the high-growth IT consulting sector, Management Consulting M&A rose to a ten-year high in 2016 with a significant share of 29% in global consulting M&A deal values.
  • Traditional large consulting agencies remained the most prolific buyers of management consultancies, including Deloitte, Accenture, BCG, etc. A noteworthy point is that a large proportion of reported M&A is under $10m. Buyer rationales for these acquisitions being search for bolt-on acquisitions of lower- and mid-market consultancies.
  • There were 946 deals involving management consulting companies in 2016, with a much higher mean deal value of $111m compared to $70.2m in 2015, while transaction multiples remained stable at around 10x EBITDA.
  • Several niche areas within Management Consulting have consistently achieved high valuations, including Financial Advisory, Healthcare and Analytical Strategy firms.
Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.