Buyers expect to complete 5 acquisitions over the next 2 to 3 years
Private equity expect to acquire 75% more businesses than strategic buyers
The optimum turnover size for an acquisition rose 18% since 2016
Strong demand for artificial intelligence, data analytics and Internet of Things capabilities
The Knowledge Economy Global Buyers Report analyzes the findings of our fifth comprehensive independent survey of global strategic buyers and private equity investors acquiring businesses across the knowledge economy. The report provides exclusive insights into current M&A trends among buyers that acquire knowledge-intensive services businesses across five segments: management consulting, IT services, media agencies, engineering consulting and human resources.
Artificial intelligence (AI) is no longer the domain of science fiction. Instead, it’s rapidly becoming a dominant force in the Fourth Industrial Revolution – that of digital transformation.
It’s likely that many owners of knowledge-intensive services businesses, such as IT services, media and marketing agencies or consulting firms, will be considering how AI fits into their strategy.
Further, those looking to sell their business in the future would do well to consider how AI might enhance their market position. Buyers are increasingly interested in acquiring knowledge-intensive businesses with these capabilities, which means those demonstrating the foresight to embrace AI sooner rather than later could expect to command a premium valuation.
We were pleased to recently attend the Salesforce World Tour in London and Boston, where we listened to speeches from Salesforce President, Keith Block, along with senior members of IBM Watson and Amazon Web Services. These talks focused on the transformation of customer experience as part of the so-called ‘fourth industrial revolution’. This revolution is being characterized by the convergence of cloud, social, mobile and technologies like the Internet of Things (IoT) and Artificial Intelligence (AI).
This trend is notably being observed through the development of eCommerce and smart devices, which now utilize predictive marketing and advanced data analytics. This technology is expected to become increasingly sophisticated with the rapid advances in AI.
Percentage of surveyed companies using or planning to use AI in the following ways