We recently ran a series of webinars exploring the themes within our Global Consulting M&A report 2017, which reviews the key M&A and equity market trends within the consulting industry across five of Equiteq’s industry specialisms: Management Consulting, Media agencies, Engineering consulting, IT services and HR
In this week’s blog, we outline some of the key topics discussed in our IT Services webinar, which provides vital insight for IT Services firm owners considering selling, including average deal size and valuation multiples, drivers for deal activity, top buyers and M&A activity by region.
Accenture acquires Salesforce specialist Phase One
Accenture agreed to acquire Phase One Consulting Group, a Virginia-based digital transformation specialist for the federal market with strong capabilities in Salesforce cloud solutions. Phase One will join Accenture Federal Services upon completion of the deal.
Phase One offers secure cloud implementation and consulting services to federal agencies for projects across various government sectors. The business had backing from RLJ Equity Partners, who acquired Phase One in early 2015. The company also received an undisclosed amount of development capital from Salesforce Ventures in September of last year.
We are delighted to announce that Equiteq has won the Boutique Investment Banking Firm of the Year at the 9th Annual International M&A Advisor Awards. This recognition from The M&A Advisor comes hot on the heels of the 15th Annual American Business Awards, where Equiteq was awarded Bronze winner for Company of the Year – Banking & Financial Services – Small.
The Co-CEO and President of The M&A Advisor, David Fergusson, said “The 2017 International M&A Award winners represent the best of international M&A industry in 2016 who earned these honors by standing out in a group of very impressive finalists.”
Commenting upon the award, our CEO, David Jorgenson, said “I’m thrilled that for the second year in a row, an independent judging committee of top M&A industry experts determined that Equiteq should receive another highly acclaimed award. Equiteq has built a unique global boutique model that is 100% focused on helping owners of knowledge-intensive business services firms achieve their exit goals through sale preparation and transaction execution. We are very proud that our individuality and expertise has set us apart.”
By Ramone Param, Associate Director – Market Insights & Buyer Coverage, Equiteq
Global M&A activity across the Knowledge-Intensive Services sector, as tracked by the Equiteq Consulting M&A Index, remained strong in the final quarter of 2016. Deal volumes were broadly flat in comparison to a robust prior quarter and rose in comparison to the same quarter last year. The conclusion of the U.S. presidential race has been followed by sharp rises in investor confidence and the Equiteq Consulting Share Price Index has rallied strongly throughout most of November and December, outperforming both the S&P 500 and FTSE 100. The overall Equiteq Consulting Share Price Index is now rallying at an all-time high.
As we anticipated, deal activity in the last quarter remained buoyant in the IT services sector. Appirio, was acquired by Wipro for $500m, positioning the buyer as the leading Indian technology services player in the cloud consulting space. Appirio was considered a prized acquisition opportunity amongst a range of potential suitors after a wave of deals left Appirio as one of the largest independent cloud consulting specialists remaining in the market.
We are delighted to announce that we have won Cross Border Deal of the Year ($50 – $100mm) at the M&A Advisor Awards 2016.
Our Managing Director for North America, Nico Esposito, collected the award at a ceremony in New York on Nov 9. It was given to us in recognition of the quality of our work on the successful sale of Noah Consulting to Infosys. To read a case study on the deal, please click here.
David Fergusson, Co-CEO and President of The M&A Advisor said “The award recipients represent the finest in the M&A industry in 2016 and earned these honors by standing out in a group of extremely impressive finalists. From lower middle market to multi-billion dollar deals, we are recognizing the leading transactions, firms and individuals that represent the highest level of achievement.”
Nico Esposito added “Our thanks go to Noah Consulting, who gave us the opportunity to work with them and to help realize the value they had built in their very exciting business.”
As the business award season is upon us, Equiteq is delighted to have been named a finalist in key awards on both sides of the Atlantic. The M&A Advisor Awards brings M&A industry leaders together to recognize and honor the top performers, whilst The Lloyds Bank National Business Awards is the UK’s most prestigious awards programme, showcasing businesses achievement.
The M&A Advisor Awards
The M&A Advisor Awards has been recognizing the leading dealmakers, firms and transactions since its inception in 2002. Celebrating the creativity, perseverance and ingenuity of the M&A industry’s professionals, the 2016 ceremony takes place on 9th November, at which Equiteq are finalist in the following 4 categories:
Professional Services (B-TO-B) Deal of the Year
Corporate and Strategic Acquisition Deal of the Year (over $25-$50mm)
Cross Border Deal of the Year (Over $50-$100mm); and
Boutique Investment Banking Firm of the Year – International.
Equiteq, the consulting sector M&A specialist, is pleased to announce its client Livingbridge, an independent private equity investor, has invested in the clinical consulting business, Four Eyes Insight. Equiteq provided commercial advice and detailed operational development guidance to help validate the investment case and provide a roadmap for rapid scaling and equity growth.
Four Eyes Insight was founded in 2013 by Dr Henry Carleton and Brian Wells. Leveraging the founders’ clinical experience, the business helps acute NHS trusts across the country identify and implement efficiency and performance improvements projects. Four Eyes Insight have been able to demonstrate lasting productivity improvements which are highly valued by trust management and the regulator, NHSI. Pete Clarke, partner at Livingbridge’s commented on Equiteq.
“Equiteq were invaluable in providing the roadmap for scaling which enabled us to invest with a clear view on the necessary infrastructure investment and its sequencing. Their work provided us with the confidence to invest and commit to a transformational business plan which will double the number of employees in the medium term”
Dr Henry Carleton, co-founder and CEO at Four Eyes Insight commented: “We have worked hard to establish ourselves as a key partner for the Trusts we work with, turning medical productivity plans into an operational reality and helping them to achieve significant efficiency gains and savings. Equiteq’s support and Livingbridge’s investment unleashes a new phase of growth and we are actively recruiting across all areas of the firm to scale rapidly and build on the strong momentum we have generated to date.”
David Cheesman, Group Director, based in Equiteq’s London office, commented, “We were delighted to support Livingbridge and Four Eyes develop an operational plan for robust scaling and equity growth. There is enormous potential in secondary care for Four Eye’s to improve the patient experience and increase value for money with is market leading offerings and Livingbridge’s investment will allow Four Eyes to pursue a significant market opportunity. Equiteq’s expertise in operations and business scaling alongside its investment banking services is a powerful combination that is well aligned to ambitious management team plans and private equity investments”.