2017 M&A trends

Steven Einstein, Equiteq’s newly appointed Vice Chairman, offers his thoughts on the trends experienced in the M&A market in 2017.

Despite a politically-charged global environment and the increasing number of regulatory hurdles, the high levels of M&A experienced in 2016 have been resilient in 2017 and we have also seen the continuation and evolution of a number of trends.

Looking at M&A broadly, we are seeing that regional differences are no longer as prevalent. In an increasingly global economy, acquirers from Europe and North America alike are taking an active role, canvassing the global market place for M&A opportunities that support their non-organic growth ambitions.

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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.

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Demand for acquisitions set to grow in 2018

Our fourth annual global survey of buyers of consulting businesses delivers current, actionable intelligence in the five segments Equiteq specializes in: Management consulting, IT consulting, Media & Marketing, Engineering consulting and HR consulting. Findings, published today, reveal:

  • Buyers expect to initiate 50% more acquisitions year-on-year
  • Convergence continues to be a key trend as buyers look to diversify
  • 55% of buyers think targets could be better at communicating their market proposition
  • 94% of buyers say it is important to retain management teams post-acquisition
  • Over 70% of targets do not make their IP apparent to prospective buyers
  • Three quarters of buyers expect at least 40% of a target’s clients to be blue chip
  • Deal structures are improving for sellers

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October 2017: Consulting M&A Update

By Ramone Param, Associate Director, Equiteq

There was notable activity in October from a range of prolific acquirers of consulting firms, particularly those active within the IT Services segment. Major deals included DXC Technology’s acquisition of Logicalis SMC, Orange Business Services’ acquisition of Business & Decision and Office Depot’s acquisition of CompuCom. There were also two notable digital acquisitions announced by Cognizant and three healthcare-focused deals announced by Atos. Equiteq was also pleased to advise VISEO on their acquisition of Singapore-based IT Services firm NAIT Consulting and property consulting firm McBains Cooper on their sale to RSBG.

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Q3 M&A Update: Robust overall global deal activity across the consulting sector, with large variations by segment

  • Overall global deal activity +1% year-on-year
  • Strong rise within Management Consulting and Media segments
  • Strongest deal flow in North America
  • Equiteq Consulting Share Price Index reaches new highs

By Ramone Param, Associate Director, Equiteq

Overall global deal activity in the consulting sector rose by 1% year-on-year. Deal volumes were flat as compared with the second quarter. These overall trends masked large variations in deal activity amongst market segments. The Equiteq Consulting Share Price Index continues to show record highs as investor confidence in the sector remains strong.

M&A Activity strongest in the Media Agency and Management Consulting segments

Despite notable deals occurring in HR and IT, deal activity fell in these segments. There was a strong rise in M&A within Management Consulting and Media. Engineering deal activity rose strongly against the prior quarter, but remains broadly flat on the same quarter last year.

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Equiteq named Boutique Investment Banking Firm of the 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.”

To see all of our awards, please click here.

Are you a member of Equiteq Edge? It’s full of content to help consulting firm owners prepare for sale and sell their business. Register here to gain full access.

May 2017: Consulting M&A Update

By Ramone Param, Associate Director, Equiteq.

FIS sells majority stake in Capco to private equity

Clayton, Dubilier & Rice announced their acquisition of a 60% majority stake in Capco from FIS, a leader in financial services technology. Capco is the public brand for FIS’ management consulting business and specializes in business, digital and technology consulting services for the financial services industry. FIS acquired Capco for $292m in 2010 and will receive net cash proceeds of $477m from the sale, while retaining a 40% stake in the business.

New Mountain acquires OneDigital Health and Benefits

OneDigital, one of the top buyers that we identified in the HR space, announced that it has been acquired in an all-cash deal by private equity investor New Mountain Capital. New Mountain is acquiring a majority ownership in the business from Fidelity National Financial Ventures for a reported $560m. The investment will be aimed at providing strategic guidance and industry expertise, while helping drive OneDigital’s continued growth.

OneDigital is the United States’ largest provider of employee benefits services and offers employers a combination of strategic advisory, analytics, compliance support, HR capital management tools and comprehensive insurance offerings. The business serves 35,000 companies and manages c.$4 billion in premiums.

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