Equiteq sells behavioural assessment and development consultancy to PSI Services LLC


Equiteq, a global consulting and IT services sector M&A specialist, is pleased to announce the sale of the UK based A&DC Group (“a&dc”) to PSI Services LLC headquartered in California. As leaders in behavioural assessment and development, a&dc provides consultancy services and a comprehensive range of ready-to-use, tailored and bespoke products across the talent management spectrum.

Equiteq acted as exclusive financial advisor to a&dc. The transaction completed on June 5, 2017.

The acquisition of a&dc strengthens PSI’s core Talent Assessment offering.

Nigel Povah, CEO of a&dc commented “When I started a&dc 30 years ago, I was passionate about providing great assessment and development content. The a&dc portfolio – with over 250 assessments – will continue its journey alongside PSI’s assessment technology, which will drive the delivery of our robust assessment content into the digital era.”

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Equiteq advises Aecus Limited on its sale to The Hackett Group Inc.


Equiteq is pleased to announce the sale of its long-term client, Aecus Limited, to The Hackett Group Inc. Aecus is an award-winning European consultancy that helps clients optimize business process outsourcing (BPO), IT outsourcing (ITO) and robotic process automation (RPA) through benchmarking and implementation consulting.

Equiteq acted as exclusive financial advisor to Aecus Limited and its shareholders on the sale of the business having previously worked with the company for over 8 years in a strategic advisory capacity. The transaction closed on April 7, 2017.

Discussing the transaction, Aecus Managing Director Rick Simmonds commented, “We are really excited by this – joining The Hackett Group represents a fantastic move forward for Aecus. The strength of The Hackett Group’s brand combined with the breadth of complementary services will enable us to serve our clients even more effectively and will provide our people with greater professional opportunities.”

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Lift & Shift: following the rise to cloud migration

For every consultant who spotted the cloud opportunity and raced to embrace it, there will be another who is still not quite fully convinced.

Clients have spent hundreds of thousands – or even millions – on their on-premise solutions, they are comfortable with their data centres and have established long-term relationships with their maintenance engineers. They’re not ready to give all that up in one go. And, as long they resist a wholesale move to cloud, there’s a role for IT consultants and specialists to offer support for these traditional models.

But the pace of change is quickening; clients have tuned in to piecemeal migration and with software vendor innovation being cloud-focused, the largest traditional consulting firms have seen the writing on the wall, turning to mergers and acquisitions (M&A) as the only credible way of rapidly building their cloud capability.

Shaun Fröhlich is UK managing partner of Incredibleresults, and works with leadership teams to accelerate value growth.

“We are all on a spectrum,” he says. “Many believe the world is changing because of the cloud and it is spurring them on to cash in their chips on their existing business, but there is an almost equal number that remain neutral and see it as an evolution, not reason to trigger a capital event.”

Despite the cloud offering faster, less disruptive deployment and easier global enablement – while cyber-security concerns have increasingly been addressed – migration to the cloud isn’t yet wholesale for most organizations.

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5 things every consulting firm must know to thrive in Asia-Pacific

Equiteq’s CEO, David Jorgenson, and Jean-Louis Michelet met with Professor Kevyn Yong (Dean of ESSEC Asia-Pacific and specialist of entrepreneurship) at ESSEC Business School in Singapore to discuss the opportunities and challenges impacting M&A activities in the Asia-Pacific region.

This is the third part of their discussion: What advice would you give to consulting firm owners in one of the Asia-Pacific countries?

The consultancy landscape in Asia-Pacific has changed in the last few years. There has been a strong development in the use of consultants as the regional economies have grown and become less dependent on the primary sector, and have seen a surge in secondary and services sectors activities.

A 2016 report from the United Nations Economic and Social Commission for Asia and the Pacific shows the increased activity in the services sector is partly down to its role in facilitating global value chains in the manufacturing sector. It also attributes this to the growth of digital-intensive services in sectors like financial services, telecommunications and digital media and marketing.

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Training isn’t just for athletes

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This week we have a guest blog from Patrick Chapman, Business Development Partner at Elevation Learning.

Everyone agrees that most of the value of a professional consulting firm comes from the people within the organization. In fact, staff in a consulting business are so important that ‘consultant loyalty’ is one of Equiteq’s 8 levers of equity value. So if you want to grow your firm with a view to selling it one day, then nurturing and developing your staff has to be one of your priorities. Unfortunately, when looking to improve financials prior to sale, training is one of the first budgets to be cut. However, this strategy is undertaken at your peril and will end up doing more harm than good.

To build value, your staff team needs to have a shared language and consistent ways of working. This will allow different groups of consultants to come together quickly to form a cohesive unit for each client engagement, meaning truly chargeable work starts more quickly. This ultimately protects your margins and when the value of the whole exceeds the sum of its parts, your bottom line performance will benefit, meaning you’ll be more appealing to buyers.

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Shifting personnel model within the consulting space

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Advancing technologies and cloud computing, a maturing millennial generation and the rise of the ‘gig economy’ are creating an environment where consulting businesses are increasingly looking beyond the traditional employed model toward more flexible employee solutions.

This way of working suits consultancies, but they need to consider how it affects the equity value of their company.

Does a stigma still exist in the minds of buyers of knowledge-intensive firms when considering an acquisition? Potential suitors may view a more traditional, fully staffed model as more attractive for reasons of consistency, continuity and a deeper entrenchment of brand values and culture. However, these characteristics and contract working are not mutually exclusive.

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Finding the right non-executive director or board advisor

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Paul Collins is the Chairman of the Board of Directors at Equiteq and has held a number of non-executive directorships.

Non-executive directors (NEDs) can play an important role in helping a business navigate its way through often-choppy waters and grow. They can provide valuable advice, but only if they have the right skills and experience. So how should a consultancy aiming for growth and eventual sale choose an NED?

First off, unless your business is well past the $50m mark in revenue, you don’t really need an NED and can instead have a board advisor. Until a firm is well over this size, it won’t have the governance issues to consider that mean an NED is needed.

Becoming an NED brings with it all the legal liabilities of being a formal director, but arguably without much of the additional information that directors have. In my experience, it works best for an NED to attend board meetings quarterly, with informal communications in between these times. If the NED attends the monthly board meeting then they can quickly become bogged down in the operational issues, rather than provide the strategic insight that they should be concentrating on. But if they don’t attend these monthly meetings, yet have the same legal liability for the company as the executive directors, then this can put many people off the role.

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