what buyers say; what you need to know when selling

Confidential© Equiteq 2015 equiteq.com

Growing equity, realizing value

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

Confidential© Equiteq 2015 equiteq.com 2


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

integration.



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

Timing


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


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

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


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



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

Size


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



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

Deal


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

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



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

Beauty


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.



How important is intellectual property in getting premium valuations?

Intellectual property


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

assessing potential acquisitions.


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.



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

Integration


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


The integration process on average will take 19 months.



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

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what buyers say; what you need to know when selling

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