In September we will publish the results of in-depth research carried out with 100 commercial buyers in the US and Europe. The report will contain fresh insight into what buyers want, how hungry they are to buy, what’s particularly on their agenda and an indication of the prices they are prepared to pay.
To mark the launch of Equity Edge, our new online resource and information hub, we thought we would provide a sneak preview of some of these findings now.
In line with our own Global Consulting Mergers & Acquisitions Market Report 2014, buyers have told us they expect the market to pick up and deals to increase in volume over the next 2-3 years. They see more opportunities as economies improve in the US and UK.
What is the optimum size of consulting firm they look for? There is a wide spread between the minimum and maximum turnovers of target consultancies but on average, the optimum is a turnover of around $30 million.
There are a number of factors that attract buyers to a consulting firm, but four were deemed the most attractive. The first is financial stability (sales & profit growth and a reliable future forecast), followed by deep domain expertise in one main service area. Unique and leveragable Intellectual Property is also very important, as is being highly differentiated within the market it operates.
“Equiteq has deep knowledge of consulting firm M&A globally and it knows what buyers want,” says Jim Horsley, Equiteq’s research advisor. “But it also knows that information is much more powerful and engaging if it’s coming directly from the horse’s mouth which is why the buyers’ insight report, based on independent research, will be essential reading for anyone looking to grow and sell their consulting firm over the next few years.”
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