What Acquirers Look for in a Consulting Firm

What Acquirers Look for in a Consulting Firm

What acquirers look for in a consulting firmNext up management consulting guru David Bailey, who founded and grew the consulting firm Impact Plus which was acquired by Hitachi. Later, he went on to acquire other businesses for a range of companies including KPMG. Bailey discusses what makes a business attractive to an acquisitive bigger firm.

For Bailey, the most important drivers of value for a consulting business are its strength and competence in a particular area of the market, its profitability and its probity. A ‘clean’ business with clear and referenceable financial data at its fingertips and which is not encumbered by too many areas of difficulty – such as legal disputes or non-profitable offices – will be more attractive to acquirers. “You don’t want anything hanging off the side,” he said.

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