London, United Kingdom, April 19, 2007 --(PR.com
)-- A new report just out has revealed that the European management consulting industry is experiencing its highest number of mergers and acquisitions in almost ten years, with an increasing number of bidders coming from the USA.
Co-author of the ‘European Consulting Mergers and Acquisitions Report 2007’
Paul Collins, said that many larger USA and European firms were snapping up small and medium sized UK consulting firms to extend their services and geographic reach. And by far the most popular firms to buy were those who had sales of around $5m per annum.
Paul Collins, managing director of consultancy advisory firm Equiteq, said: “There are a number of successful niche consultancies doing well in the UK, and larger overseas players are seeing them as a good way in to some blue chip clients and growing industries. As a result, the market has tripled in volume since 2003 and is currently at its highest since the dot com boom of the late 1990s.”
And it’s not just other consultancies that are eyeing up acquisition opportunities in this area.
Paul continues: “More and more people outside of the consulting arena are realising that businesses like consulting, if well run, have a reputation for healthy profits and a good cash flow. So for an external investor or private equity house this provides an opportunity to improve the returns from their portfolio of investments and make some money.”
Collins, who sold a 30% stake in his old firm WCI back in 2002, has been studying the M&A consulting market with co-author and co-director David Cheesman since 1995.
So, how do they suggest that new buyers take advantage of the current market conditions and find the right consulting firm for them?
David Cheesman advises: “Buyers should have a clear strategy of what they want the new acquisition to do for their current business – is it to bring in consultants with experience of a new industry, extend their reach in a new geographic area, expand their offering in a current client? Then engage some expert advisors who really know who is who in the consulting industry and will help them find a firm who fits their strategic, commercial and cultural needs.
“Acquisitions are easy to get wrong – but if you do your homework on your likely targets and take time to prepare you will ensure a smoother transaction and reap better financial benefits long term.”
For highlights of the report or to find out more information please visit www.Equiteq.com
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Equiteq helps USA companies and investors to find European consulting firms for acquisition. If you wish to acquire a consulting company, they use their unique research, evaluation and due diligence process to help you find, negotiate and buy the ideal company to meet your strategic objectives.