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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

Executive Chairman | Succession Plus

Craig West is a strategic accountant with over 20 years of experience advising business owners. His background as a CPA in public practice has provided invaluable experience in the key issues of concern to business owners.

In March 2014, Craig was appointed Executive Chairman of the SME Association of Australia, Australia’s largest small business organisation representing over 300,000 business owners.

In October 2014, he was awarded the Exit Planner of the Year at the Exit Planning Institute Annual Conference in Texas, USA, due to his innovative development of an exit planning process to help business owners maximise business value and achieve a successful exit.

Craig’s proprietary structure - a Peak Performance Trust - has won the Australia-wide award for the Employee Share Ownership Plan of the year twice in four years.

In November 2018, Craig launched SME Experts in partnership with Mark Bouris’ Mentored on Podcast One and quickly grew the monthly podcast audience to over 26,500 downloads; in October 2019, he released a new podcast focused on medium-sized businesses - Mid-Market Matters.

In July 2021, Craig joined the NSW Committee for STEP (Society of Trust & Estate Practitioners) – focusing on advising families across generations.

Craig has also launched a SaaS platform, Capitaliz (which captures the 21-step process), to assist other advisers internationally deliver advisory services at scale.

In November 2021, Craig was appointed Executive Chairman of NSW Leaders, a business mentoring group for leading NSW businesses.

In July 2022, Craig West received the award of Doctor of Business Administration for his research thesis titled “Examination of the key factors driving business exit options in Australian Small and Medium Enterprises.”

Craig is passionate about encouraging business owners to think strategically, maximise the value of their business and achieve a successful exit.

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