M&A set to propel UK firms’ growth

Major acquisitions by two of the most well-known UK-based consulting firms
could see them expand into lucrative markets.

Detica and the Management Consulting Group have made big purchases, including
m.a. partners and Ineum. The deals, representing more than £100m in value, have
been made to propel the firms forward into new markets.

Detica’s acquisition of m.a. partners, at £32.3m, sees the group move to grow
in the financial services market, which it sees as having tremendous potential
due to the complexity of financial products and the regulatory regime they
operate within, including requirements such as Basel II and MiFiD.

‘Capital market represents one of the largest and fastest growing consulting
sectors driven by the sheer volumes of data, the complexity of financial
instruments, international and local regulatory initiatives and a continued
drive for efficiency gains,’ said Detica chief executive Tom Black.

MCG’s £81m acquisition of Ineum, the French spin-off of Deloitte’s consulting
arm, will see some merger work for the business. Parson Consulting, the
financial management arm of MCG, will combine with Ineum to grow consulting
revenues across mainland Europe.

Parson will operate under new chief executive Didier Taupin, who has been
president of Ineum since 2003. Current chief executive Rick Fumo will retire,
but continue to work with specific clients, and will act as chairman of the
advisers to Parson.

The acquisition is a boost for MCG, which has struggled to drive revenues in
North America following a slowdown in Sarbanes-Oxley work. Recent interims
showed Parson’s North American operations post a loss of £1.9m compared with a
profit of £1m a year earlier.

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