Wavestone intends to accelerate international development with the acquisition of a UK consultancy in the coming month. The global consultancy has announced that it has entered into final negotiations to complete a 100% acquisition of the unnamed firm’s capital.
Wavestone is an international management consulting firm formed by a series of acquisitions by Solucom, including that of Hudson & Yorke, and later, Kurt Salmon in 2015, before the collection of acquired firms rebranded under the single name Wavestone in 2016. The unified firm now hosts a team of over 2,600 consultants in four continents, providing a range of management and IT advisory offerings, serving corporates, multinationals, and public sector organisations.
Since its rebranding, Wavestone’s combined leadership has set out a to complete a new strategic vision aimed at establishing Wavestone as a top-tier international consulting brand by 2021. Building on a number of growth pillars, including accelerated growth in existing markets, market entry into new consulting segments and the opening of new offices, the strategy also includes room for inorganic growth, in line with Wavestone’s origins – with targeted acquisitions of firms in the range of €5 million to €20 million in revenues, primarily in the UK or the US.
In line with this plan for international development, Wavestone has confirmed that it expects to close a deal for a UK-based consulting firm by the close of April. As negotiations enter their final phase, the prospective acquisition is considered, by Wavestone, to be a major opportunity to enrich the firm’s value proposition in the UK, boosting the firm's focus on the financial sector outside of France.
This proposed deal is also aimed at enhancing Wavestone's ability to address global programmes, and expand the firm's client portfolio with complementary global accounts across the finance industry. Upon closing, the transaction would take the form of a 100% acquisition of the firm’s capital by Wavestone. According to sources close to the negotiations, the purchased firm’s founders would support the project during a 6 to 12 months transition window, working to ensure the successful integration of the company within Wavestone – a part of the acquisition process that many firms struggle with.
The deal is expected to be paid fully in cash, and funded through an existing credit line negotiated with Wavestone's banks. The price of the purchase would be founded on the potentially acquired firm’s enterprise value, representing circa 1.2 times its revenues from 2017. Approximately 25% of the consideration would also be subject to the firm's performance in the year following completion, in order to ensure maximum value on Wavestone’s end.
Sourced from ConsultancyU