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A new report just out has revealed that if you are the CEO of a small or medium management consultancy in the UK, then there has never been a better time to sell your business.

Co-author of ‘The European Consulting Mergers & Acquisitions Report 2007’ Paul Collins, said that firms who have sales of over £3m per annum are the most likely to be made an attractive offer for their business by competitor firms or private equity houses and investors. So if you are around that size and can show a well run business with a healthy sales pipeline…now could be a golden opportunity to put plans in place for your retirement, or that yacht in the South of France!

Collins, who is managing director of consultancy advisory firm Equiteq and sold his 30% stake in his old firm WCI back in 2002, has been studying the M&A consulting market with co-author and co-director David Cheesman since 1995.

David Cheesman said: “The market has tripled in volume since 2003 and it’s largely because more private equity firms are becoming interested in buying consultancies. That is because service business like consulting, if well run, has a reputation for healthy profits and a good cash flow. For an investor this provides an opportunity to improve the returns from their portfolio of investments. For the owners of consulting firms it’s a chance to sell up and enjoy some of your hard earned equity, begin a new venture, retire, or a bit of all three!”

So, how should firm owners go about finding the right buyer for them?

David advises: “They should begin by examining their current sales and marketing processes – are they producing a healthy pipeline of leads and new business? This will be a big draw to a buyer. They also need to get the management team on the same page, discuss the way forward, decide whose behind it, who isn’t, and what the options are to keep everyone happy – a leveraged management buy-out where the founders go but some of the team stay, for example. Lastly, firm owners should engage expert advisors who really know the consulting industry, people who know who is buying who and will help them find a buyer who ‘fits’ you both strategically and culturally.”

For highlights of the report or to find out more information please visit www.equiteq.co.uk

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Media enquiries: For further information please contact Tony Rice on +44 (0)1252 724264 or tony.rice@equiteq.co.uk

Additional Information

Equiteq helps consulting firm owners to increase the equity value of their companies and realize personal wealth through a sale or external investment in the firm.

We have an unrivalled track record of building and selling high value consulting firms. We can provide you with a proven equity growth system that will rapidly increase sales, lock equity value into your firm, and accelerate your path to wealth and prosperity through either a sale and exit or inward investment in your firm.
www.equiteq.co.uk

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