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PWC and Boston Consulting Group expect that “demand for merging and acquisitions will increase their advisory revenue this year, as the expected increase in SPURS, which hopes the industry will be released from its post-paradise funk.
CEO of BCG Christoph Schweizer told the Financial Times that there was an increase in M & a Agreements on the “radar” of the company and what expected an increase in duties and preparatory work, together with tips on integrating newly connected companies.
Mohamed Kanda, a Global President of PWC, said that optimism was “high” among executive directors and that companies were “looking at ways to transform for success, and in many cases completely inventing their business model.”
Their comments come after the number of M&A contracts around the world hit Nine -year -old low in 2024.According to the London Stock Exchange group. While a few megadealas pushed the overall value of M&A to more than $ 3NN for the first time since 2022, it was still barely half of the top 2021.
The service in the agreement contributed to the sharp slowdown in the consulting sector, especially in the large four Deloitte, Ey, KPMG and PWC.
In their last financial year, Deloitte and Ey have recorded their smallest global revenue growth for 14 years. Thousands have been released throughout the industry in the last two years, including McKinsey, PWC and KPMG.
Investment bankers are optimistic that the arrangements will recover in 2025. After the activity was depressed last year by uncertainty due to the choice around the world. The source of Global, which accompanies the consulting industry, said that the decline in the agreement led to a particularly poor end of the year for companies in the US, which are in November last polling stations.
“We expect the growth of our advisory business as well as in the wider consultation sector. . . Guided by the higher level of M&A activities and increased focus of companies on the implementation of the technology and sustainability transformation program, “Kanda said.
Schweizer said the companies are now more eager for arrangements because “there was a demand for M&A. He said” private capital has a lot of dry powder. . . The need for deployment ”, which will encourage acquisitions, adding that the purchase companies should also go out of some investment after sitting on their portfolio companies” for unusual time “.
Global private capital and risk capital funds in December held $ 2.51 NTN USD in December, undoubted capital, according to the Preqin private market, which is less than a record $ 2.66tn at the end of 2023, but still elevated level by historical standards .
Schweizer said that the M&A activity would also be increased by the appearance of less regulation under Trump’s administration in the US.
BCG, who has not yet published his revenues for 2024, said his growth was in “two -core digits” in 2024, and this year expected a similar one, mostly from technological projects and companies counseling on how to improve productivity, as And to work.
An older partner in another leading consultation company said there is now “energy and excitement” about M&A.
“There is no company that doesn’t think about M&A,” they said. “We are a pretty good leading indicator and amount of diligence in which we increased significantly in December and January.”
Politics will also help grow consulting in the UK, according to the head of the Jonathan House counseling from PWC, who quoted the focus of the British government on economic growth.
As optimism grows in the consulting industry, the companies reconsider their numbers and hope that they will leave the staff cut behind them. PWC and BCG said they expect to add their workforce this year.
Carole Streicher, Head of Consultation on Agreement at KPMG, in the US, said that the company was strongly engaged during the 2021 rise and held staff in the preparation of clients for sale when the market eventually revived. The first half of 2025 could prove to be a window for arrangements, she said, before a possible increase in inflation from new tariffs.
The staff are “dressed. They continue to be dressed. And as the agreement market is increasing, exploitation will increase,” she said. “We’ll also add more people to the team.”
