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Growing equity, realizing value

What buyers say2015 global research report for consulting firm owners wishing to sell during 2016/17.

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6 key questions formed our survey; timing; size; deal; beauty; intellectual property; and

integration.

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Growing equity, realizing value

Are we in an up or down market cycle and is now a good time to sell?

Timing

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Acquisitions are an integral part of growth for over 80% of firms.

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Buyers doubling their acquisition expectations from an average of 6% growth

to 15% growth rate over the next 2 – 3 years.

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Within our sample, there is over $7.7bn of funds available for acquisitions.

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Growing equity, realizing value

Are you well positioned in terms of scale and financial profile?

Size

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Larger firms are in greater demand, but buyers continue to buy firms of all sizes.

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Growing equity, realizing value

What are the determinants for the realization of equity over an earn-out period?

Deal

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Earn-outs continue to be the reality for the majority of transactions.

Expect about 45% upfront and a 2-3 year earn-out.

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What does good look like and how attractive are you likely to be?

Beauty

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Quantitatively, buyers care about profit margins and growth; Qualitatively,

client profiles and quality of your IP.

Highlight a mix when initially presenting to a prospective buyer.

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How important is intellectual property in getting premium valuations?

Intellectual property

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68% of all buyers found IP extremely or very important as a factor when

assessing potential acquisitions.

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45% of buyers struggle to understand how IP described contributes to success of those

firms.

IP value must be clearly articulated for buyers to see how they can leverage it in

their own firm.

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Growing equity, realizing value

Post deal, what are the typical buyer priorities for your people and your clients?

Integration

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In the first 90 days buyers focus on integrating people and clients.

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The integration process on average will take 19 months.

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Growing equity, realizing value

Planning your exit strategy?Speak to us for expert, impartial and confidential advice.

UK +44 (0)203 651 0600USA +1 (212) 256 1120 Singapore +65 6352 7482Email info@equiteq.com