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Acquiring talent driving activity within professional services
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Acquiring talent driving activity within professional services

Professional services have remained a popular segment for acquisitions in the first half of 2019, due largely to lower barriers to entry in the sector creating a lot of opportunities for growth.

Recent data from IBISWorld reported that sole practitioners and boutique firms with less than 20 staff represented approximately 98% of professional services businesses in fields such as law, advertising, architecture, accounting, financial advice, engineering and consulting, among others.

Professional services have remained a popular segment for acquisitions in the first half of 2019, due largely to lower barriers to entry in the sector creating a lot of opportunities for growth.

Recent data from IBISWorld reported that sole practitioners and boutique firms with less than 20 staff represented approximately 98% of professional services businesses in fields such as law, advertising, architecture, accounting, financial advice, engineering and consulting, among others.

The ‘specialised’ nature of expertise offered by professional services, and revenue driven by personal client relationships and the expertise of individual employees means long term growth prospects are highly dependent on effective talent development strategies.

Faced with significant investments required to train and develop their staff has led many professional services firms to consider acquiring established companies and their networks as a lower risk, cost-effective way of increasing market share.

RPS Groups’ acquisition of Corview and its team of 45 management consultants for $32m seeks to expand the group’s delivery of consulting services, through broadened skills and enhanced knowledge of its employees. This follows its acquisitions of Manidis Roberts in 2012 and Everything Infrastructure Group in 2015. The integration of additional specialists to its Group enables the London listed company to bolster its services offering in the Australian market.

Other notable transactions in the sector in the first half of 2019 include:

  • IPH Limited acquiring 19.99% and the remaining 80.01% stake in Xenith IP Group for $155m;
  • People Infrastructure Limited’s $14m acquisition of Halcyon Knights; and
  • People Infrastructure Limited acquiring First Choice Care and Carestaff Nursing Services Pty Ltd for $17m.

Pitcher Partners has an experienced team of specialists operating in the professional services sectors. Do not hesitate to contact us if you would like to discuss your own situation.

DFP Recruitment

M&A Advisory

Divestment to Will Group

Founded in 1981, DFP Recruitment is a provider of recruitment and staffing services across Australia. The business offers a range of recruitment solutions including temporary, permanent, graduate recruitment services, as well as and psychometric evaluations and other human resources services.

In January 2018, a subsidiary of recruitment services giant, Will Group, completed the acquisition of 60% of the shares in DFP Recruitment. Pitcher Partners Corporate Finance supported DFP throughout the sale process, acting as M&A and taxation advisor to the vendors.

The corporate finance team helped navigate both parties through a complex transaction involving a sophisticated employment compliance regime, multiple shareholding parties and earn-out considerations. The corporate finance and tax consulting teams worked seamlessly to provide tailored services to the specific needs of the transaction and the vendors.

Pitcher Partner’s professionalism, understanding of DFP’s commercial sensitivities and expertise provided DFP with confidence throughout process, and resulted in a positive outcome for all parties involved.

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.

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Responses to queries submitted via this form (“Response”) are produced by Pitcher Partners Advisors Proprietary Limited and are prepared for the exclusive use and benefit of those who are invited, and agree, to participate in the CRITICAL POINT NETWORK service. Responses provided, or any part thereof, must not be distributed, copied, used, or relied on by any other person, without our prior written consent. Any information provided is intended to be of a general nature and prepared without taking into account your objectives, circumstances, financial situation or particular needs. Any information provided does not constitute personal advice. If you act on anything contained in a Response without seeking personal advice you do so at your own risk. In providing this information, we are not purporting to act as solicitors or provide legal advice. Any information provided by us is prepared in the ordinary course of our profession and is based on the relevant law and its interpretations by relevant authorities as it stands at the time the information is provided. Any changes or modifications to the law and/or its interpretation after this time could affect the information we provide. It is not possible to guarantee that the tax authorities will not challenge a transaction or to guarantee the outcome of such a challenge if one is raised on the basis of the information we provide. To the maximum extent permitted by law, Pitcher Partners will not be liable for any loss, damage, liability or claim whatsoever suffered or incurred by any person arising directly or indirectly out of the use or reliance on the information contained within a Response. We recommend you seek a formal engagement of our professional services to consider the appropriateness of the information in a Response having regard to your objectives, circumstances, financial situation or needs before proceeding with any financial decisions. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.
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