Management Consulting

June 2017

Sectorwatch

Management Consulting is a $130b global market according to Greentarget, and growing at a 5% pace over the last few years.  That said, the market is undergoing significant changes driven by technology and legislation, and smaller firms are achieving footholds in niche areas given their ability to respond rapidly to changing conditions.  

  • During the last twelve months, 7 Mile Advisors tracked 112 M&A and investment transactions in the Management Consulting sector, for a total deal value of $797 million (in disclosed value).
  • There were 96 M&A transactions, and 16 Private Placements.
  • Majority of deals took place in US and Canada (44), followed by Europe (39), and Asia/Pacific (26).
  • The most active buyers / investors were Accenture with 5 transactions, followed by Huron Consulting, 4, and Cap Gemini, 3.

Industry Trends:

  • Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
  • Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
  • Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants