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June 2018
Management Consulting
Sectorwatch
Management consulting revenues are growing by healthy double digits, and the demands for services are expected to remain strong and grow at a faster rate. Most companies are going through various disruptions in their sector, therefore increasing the demand for deeper and long term support from consulting firms. In an uncertain economic climate as this one, companies are finding that the perspectives from an outsider is a valuable asset. Companies are increasingly turning to management consulting firms to strategize for M&A, R&D investments or to implement a competitive cost structure.
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 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
