The increasing recognition that companies can no longer rely on organic growth to realize digital goals is a driver for the increased M&A activity in this space. The digital world is continuously expanding, thereby, creating an increased need for collaboration to escalate growth, strengthen market presence and gain a competitive edge. Consulting firms like Accenture have been expanding forcefully in this space with recent acquisitions of Meredith Xcelerated Marketing and SinnerSchrader.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation