Our insights on the Consulting sector

The consulting industry continues to demonstrate notable resilience amid a challenging macroeconomic backdrop, with our analysis pointing to double-digit growth, sustained M&A consolidation, and a softening but still active valuation environment. Drawing on our International Consulting practice’s global footprint of over 375 M&A professionals and more than €25bn in completed transactions over the past five years, this report sets out our perspective on the forces shaping the sector through the remainder of 2023.

The UK consulting market is forecast to grow 13% in 2023, moderating from 23% the prior year, as firms navigate geopolitical instability, talent shortages, and persistent wage inflation. Despite these pressures, profitability across IT consulting, management consulting, and professional services softened only modestly in 2022, with leading players responding by investing in digital capabilities and AI, diversifying service lines and geographic exposure, and prioritising longer-term, higher-margin client relationships.

Consolidation remains a defining feature of the market, spanning management, operational, financial services, and digital consultancy segments. Each is being reshaped by distinct dynamics, from client demand for integrated, one-stop-shop solutions in management consulting, to nearshoring and AI-driven transformation in operational consulting, regulatory complexity in financial services, and the ongoing shift toward technology-enabled operating models in digital consulting.

At the same time, public market valuations for listed consultancies have edged lower over the past twelve months, with the average FY EV/EBITDA multiple declining from 12.8x to 11.4x. This contraction has occurred despite robust underlying financial performance across much of the sector, suggesting the move reflects broader macroeconomic sentiment rather than a deterioration in company fundamentals.

Taken together, these trends underscore a consulting sector that remains structurally attractive to investors and acquirers alike, even as it adapts to a more complex operating environment.

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