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August 2018

Management Consulting


Sectorwatch

The management consulting industry is currently undergoing a transitional phase. Although the sector has experienced growth figures recently, consulting firms still need to address impending challenges to meet client demands. The unpredictable political situation have also prompted clients to settle back into business with consultants. The tax overhaul encouraged this reaction, generating an amazing bonus for many clients who are then able to free up funds to spend on consulting projects.

Industry Trends:

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

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