November 2017: Consulting M&A and Equity Market Update

By Ramone Param, Associate Director, Equiteq

  • There was notable deal activity across the knowledge-led services industry.
  • Major deals included Permira’s investment in Duff & Phelps, Navigant’s acquisition of Quorum, PwC’s acquisition of cDecisions and RGP’s acquisition of Accretive Solutions.
  • Equiteq was pleased to advise Livingbridge Australia on their acquisition of TSA Management.
  • The Equiteq Consulting Share Price Index fell by c.1% over the month led by declines in the Engineering Services segment.

Duff & Phelps acquired by investment firm Permira

Financial buyer Permira will acquire Duff & Phelps from Caryle for $1.75bn, implying a c.2.5x valuation multiple on FY16 revenue. Duff & Phelps is known as a leading provider of valuation and corporate finance advisory services, including disputes and investigations, compliance and regulatory matters. The acquisition marks Permira’s eighth investment in the financial services industry and nets Carlyle 2.4x its investment, according to a report from The Wall Street Journal.

Duff & Phelps has a team of c. 2,000 professionals working across the globe. The business has longstanding client relationships with over 50% of the S&P 500, and over 70% of top-tier private equity firms, law firms and hedge funds. Duff & Phelps is known for having worked on high-profile engagements including advising on the bankruptcy of Lehman Brothers. The investment from Permira will enable the business to expand its range of services and global footprint, particularly in Europe and Asia.

Navigant acquires Quorum Consulting to grow its life sciences business

Navigant acquires Quorum Consulting, a US-based consulting business providing commercial readiness, reimbursement strategy, and market access services to medical technology, pharma and laboratory diagnostics clients.  Quorum’s team will join Navigant’s Life Sciences practice within the firm’s Healthcare business.

The transaction marks another acquisition for Navigant in the healthcare consulting space, after it acquired Dymedex in 2016. Dymedex provided data-driven market analysis to accelerate the growth of medical device companies. Consulting firms are benefiting from the need to advise clients on issues arising from ongoing health-care reforms, market access, and the use of advanced data analytics and technology solutions to lower costs and demonstrate value.

 

PwC boost its Salesforce consulting capabilities

PwC acquires UK-based Salesforce consulting player cDecisions. The business will become part of PwC’s existing UK Salesforce team, which is part of a digital and customer transformation practice of over 350 people.  The business has strong credentials in the financial services industry and has worked with many leading brands across sectors, including Chubb, Johnson & Johnson, Sharps, GM, Metlife and L’Oreal.

The deal follows PwC’s acquisition of Polish-based Outbox last year. Outbox worked with Salesforce, along with Microsoft Dynamics, Oracle and SAP, and has achieved exceptional growth since becoming part of PwC.

Resources Global Professionals acquires professional services firm Accretive Solutions

Resources Connection, which operates as Resources Global Professionals (RGP), acquires Accretive Solutions for $19.4m in cash and 1,150,000 shares of Resources Connection restricted common stock. The deal is expected to increase RGP’s revenue by c.$65-70m and EBITDA by $6.5-7.5m after 9 to 12 months. Accretive is a professional services firm based in Chicago with a team of c.500 people. The business offers a range of services, including accounting and finance, enterprise governance, business technology and business transformation, as well as back office services to start-ups through its Countsy brand. The acquisition will enable the buyer to increase its share of the middle market and to expand Countsy into new markets.

 

 

 

 

 

Selected Consulting M&A announced in November:

Note 1: Based on data from PitchBook. Valuation multiple based on FY16 revenue.
Note 2: Based on data from CapIQ.

Equiteq Consulting Share Price Index:

Important Notice: This article has been compiled using our daily activities in the industry that provide us with unique market intelligence, along with various third party information sources. In many cases, valuation metrics and other deal data has not been confirmed.

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