For the second successive year, we reveal the findings of our annual survey of buyers of consulting firms, on their M&A appetite and what makes them tick when evaluating acquisition targets.

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Growing equity, realizing value
What buyers say
2015 global research report for consulting firm
owners wishing to sell during 2016/17.

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6 key questions formed our survey; timing;
size; deal; beauty; intellectual property; and
integration.

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Growing equity, realizing value
Are we in an up or down market cycle and is
now a good time to sell?
Timing

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Acquisitions are an integral part of growth for
over 80% of firms.

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Buyers doubling their acquisition
expectations from an average of 6% growth
to 15% growth rate over the next
2 – 3 years.

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Within our sample, there is over $7.7bn of
funds available for acquisitions.

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Growing equity, realizing value
Are you well positioned in terms of scale and
financial profile?
Size

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Larger firms are in greater demand, but
buyers continue to buy firms of all sizes.

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Growing equity, realizing value
What are the determinants for the realization
of equity over an earn-out period?
Deal

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Earn-outs continue to be the reality for the
majority of transactions.
Expect about 45% upfront and a 2-3 year
earn-out.

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Growing equity, realizing value
What does good look like and how attractive
are you likely to be?
Beauty

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Quantitatively, buyers care about profit
margins and growth; Qualitatively,
client profiles and quality of your IP.
Highlight a mix when initially presenting to a
prospective buyer.

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Growing equity, realizing value
How important is intellectual property in
getting premium valuations?
Intellectual property

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68% of all buyers found IP extremely or
very important as a factor when
assessing potential acquisitions.

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45% of buyers struggle to understand how
IP described contributes to success of those
firms.
IP value must be clearly articulated for
buyers to see how they can leverage it in
their own firm.

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Growing equity, realizing value
Post deal, what are the typical buyer priorities
for your people and your clients?
Integration

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In the first 90 days buyers focus on
integrating people and clients.

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The integration process on average will
take 19 months.

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Growing equity, realizing value
Planning your exit strategy?
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