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March 2018
Management Consulting
Sectorwatch
Management consulting has grown over the last five years primarily on rising corporate profits, growing corporate budgets, and increasing sources of data/complexity. Demand is largely broad based, but particularly strong within financial institutions, professional firms, and healthcare. Additionally, the ongoing transition toward digital technology has provided new growth outlets for operators. Over the next five years, the industry is expected to grow with the general US economy.
Industry Trends:
- 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 exceeds the average of the last 3 years gross profit margin, indicating supplier pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation
