Monthly Archives: June 2018

Healthcare and Life Sciences Consulting Global M&A Report 2018

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Our review of deal flow in the healthcare and life sciences consulting space shows rising demand from cash-rich strategic and financial buyers for larger acquisition opportunities

By Ramone Param, Director

Published today, Equiteq’s healthcare and life sciences consulting global M&A report provides exclusive acquisition and valuation insights for consulting firm owners considering a sale. The data reviews M&A, investor and equity market activity in 2017, as well as over the last ten-years. Our unique insights are informed by our regular detailed conversations with the leading serial acquirers of healthcare and life sciences consulting businesses. The following is a brief overview of the key themes from the report, the full version of which can be found here.

Healthcare M&A activity at a glance

  • 371 completed deals in 2017, down 12% year-on-year
  • Median deal value of $21m, up 14% year-on-year
  • 24% of deals were cross-border
  • The Equiteq Healthcare Consulting Share Price Index rose 28%, while the S&P 500 gained 18%

There were large variations in deal flow among healthcare consulting segments, with stronger activity occurring in spaces like data & analytics and strategy consulting to life sciences companies. The number of completed deals fell, but the median size of transaction rose substantially, indicating that buyers were focused on a smaller number of larger deals.

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Healthcare Consulting Insights: Healthcare Provider Consulting M&A

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By Nicodemo Esposito, Managing Director and Ramone Param, Director

M&A activity is strong for specialized operational management consulting businesses that provide innovative, data-driven process improvement and cost reduction solutions

We continue to receive feedback from the most prolific buyers of knowledge-intensive services firms that expertise in helping healthcare providers with process improvement and operational efficiency is of high strategic importance for growth. A confluence of demographic, economic and regulatory drivers are forcing providers to improve care standards and enable efficiencies. Providers are also increasingly being compelled to invest in new digital technologies that can create data-driven productivity improvements and competitive advantages. These industry trends are driving strong demand and premium valuations for well-positioned operational consulting firms working with healthcare providers. Equiteq experienced this demand first hand in its sale of c3/consulting to Ankura. c3 has a track record of providing management consulting services to a variety of leading healthcare organizations in the US.

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GDPR: The opportunity for professional services consulting firms

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The General Data Protection Regulation (GDPR), implemented May 25th, has introduced a range of new compliance and legal requirements for businesses across all sectors and industries, mainly the need to be accountable with personal data.

Equiteq, with insights from Bart Schermer of Dutch consultancy Considerati, examine the ways professional services consulting firms can turn the compliance burden posed by GDPR into a competitive advantage.

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May 2018: Knowledge Economy M&A and Equity Market Update

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By Ramone Param, Director, Equiteq

  • Major deals profiled include OMERS Private Equity’s acquisition of Alexander Mann Solutions, H.I.G. Capital’s acquisition of Conduent’s US-based HR consulting business and Bain & Co.’s acquisition of FRWD.
  • The Equiteq Knowledge Economy Share Price Index achieved another month of robust gains.

OMERS Private Equity acquires Alexander Mann Solutions, marking the recruiting firm’s fourth private equity buyout

Target: Alexander Mann Solutions is a UK-based provider of workforce solutions meeting its clients’ permanent, contingent and internal mobility requirements through a range of outsourcing and consulting services. Much of its work revolves around helping large businesses to recruit and retain talent.

Buyer: OMERS Private Equity is the private equity arm of OMERS, Canada’s largest defined pension plan.

Deal Value: £820m ($1.1bn)

Deal Insight: The deal marks yet another private equity investment for Alexander Mann Solutions:

  • In 2013 it was acquired by New Mountain Capital through a c.$418m LBO.
  • In 2007 it was acquired by Graphite Capital through a $205m LBO.
  • In 1999 it was acquired by Advent International through a $56m LBO.

Through its string of investments, the business has grown into a global recruiting player with 4,000 talent acquisition and management experts that partner with over 100 clients across 85 countries. The investment from OMERS is expected to enable Alexander Mann to strengthen its sector and regional capabilities, while investing in technology that enhances its offering.

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