Selling a Consulting Firm

Selling a Consulting Firm

Across all sectors, only 7% of companies offered for sale attract a buyer. In the consulting sector most sales fail due to inadequate sale preparation, poor or no advice to sellers on how to represent their value to buyers and lack of knowledge of the buyer market for consulting firms. Selling owners should expect their advisers to provide high confidence in a successful outcome as well as a premium price and favourable deal terms.

Factors that drive a successful deal

These are the main decision criteria when clients choose Equiteq as their advisor

  • Industry specialism and track record of delivering consulting firm sales
  • Advance preparation to minimize buyer risk factors
  • Creating a robust consulting firm valuation that cannot be undermined in negotiation
  • Packaging the firm as a value proposition to individual buyer candidates
  • Attracting a large pool of competing buyers
  • Assisting buyers to build their business case to acquire at a higher value

Our approach and how we make a difference

We run a sale process that in most respects would resemble what any M&A firm would do, but under the covers it is deep in the things that are unique to the consulting sector and rich in the expertise required to make a deal happen. In the consulting sector a typical 'real' EBIT Multiple would be less than 5, with Equiteq it is more likely to be greater than 7, and we will be straight with you about the chance of success before we start.

The sale process begins with a Valuation & Market Risk Assessment, then after Sale Preparation we build the list of target buyers, write the documentation and begin the process of attracting buyers. Typically starting with more than 100 buyer targets we will hone it down to 4 or 5 hungry bidders, before going exclusive with your preferred suitor and closing the deal. In today's market the process can take 6 to 9 months.

If you would like to hear more about our process and track record, please contact Tony Rice at tony.rice@equiteq.com, or +44 (0)203 651 0607.

Recent Equiteq Deal Example

Blue Sky Performance Improvement
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