Consulting M&A Activity: Market Moves

Here's a summary of the key points in the Consultancy.org x Boxington Corporate Finance article on 2023 M&A activity

• Despite a 27% decline in overall M&A activity in 2023 due to economic pressures, the consulting sector saw strong deal activity throughout the year and heading into 2024

• Consulting sector valuations outperformed most share indices in 2023, though EBITDA valuation multiples remained stable as buyers anticipated lower future demand and growth.

• Many consulting firms made "super-strategic" acquisitions in 2023 to diversify geographically and across sectors. Notable deals included McKinsey & Company acquiring Iguozio, Elixirr buying Insignium, and L.E.K Consulting purchasing Hi Mum! Said Dad.

• Most deals focused on expanding into new sectors within existing markets rather than cross-border opportunities. Examples included Kearney acquiring Silicon Foundry, PwC buying Schuh & Co, and Accenture purchasing Anser Advisory.

• Traditional, multi-faceted advisory services accounted for 78% of consulting M&A deals, compared to only 16% involving technology and AI-enabled consulting.

• The UK and Ireland represented a disproportionately large share of consulting M&A activity, accounting for around 20% of deals by buyer headquarters and 23% by target firm location, almost as much as the rest of Europe combined.

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