Next 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.