UK M&A falls by almost 20% in 2023 📉
UK M&A falls by almost 20% in 2023 📉
Verdantix releases Green Quadrant | Republicans call for McKinsey ban | LEK launches payments practice | Use Perplexity AI instead of Google
👀 What to expect: ~1,000 words / 5 min read
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Exec SumUK M&A activity fell by almost 20% in 2023
Verdantix releases 2024 Green Quadrant
Republicans call for ban on McKinsey from gov contracts
LEK launches payments practice
Use Perplexity AI instead of Google
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Industry NewsThe Headlines 📈
UK M&A activity falls by almost 20%
UK M&A activity hit a post-pandemic low in 2023, with deal volume plunging 17% YoY and deal value down 41% relative to £150b in 2022. Amidst this broader decline, sectors like business and financial services defied the trend to see modest growth. Corporates led the majority of deals, however the proportion coming from PE continued to increase, reaching 42% (up 5% from 2022 and 14% since 2018). Despite the decline, market analysts are optimistic for 2024, with forecasts buoyed by late-year recovery signs, PE dry powder and stabilising economic indicators. Read more.
Republicans call for McKinsey ban from gov contracts
Top Republican lawmakers, including Marco Rubio and Michael McCaul, are pushing to ban McKinsey from securing US federal contracts after reports emerged that a think-tank affiliated with the consulting firm provided policy recommendations to the Chinese government, potentially undermining US security interests. The think-tank, Urban China Initiative, led by McKinsey, reportedly contributed research for Beijing's five-year plan, leading to concerns about the firm's ties to the Chinese Communist Party and its impact on Sino-US tensions. McKinsey's global managing partner, Bob Sternfels, denied knowledge of working directly for the Chinese government, while McKinsey defended its position, stating that UCI was a separate entity. Read more.
The News 📰
LEK launches payments practice - LEK has launched a payments practice, headed out of its London office, aimed at assisting clients in financial services and related sectors (such as retail & mobility) with strategies for growth. The practice will be led by Doug King and Richard Mould. Read more.
Capgemini partners with Mistral AI - Capgemini has announced an alliance with Mistral AI with a view of integrating its ‘efficient foundational models’ into its broad generative AI architecture, both with respect to clients and its internal operations. Read more.
Deloitte refocuses UK deals business after profitability review - Deloitte is moving away from smaller deals and areas like financial services and intellectual property in order to reverse declining profitability. The restructuring will result in up to 100 job losses across multiple offices. Read more.
IBM unveils AI Platform - IBM Consulting Advantage, a platform integrating AI and Machine Learning, will be used to enhance service delivery through tools like IBM Consulting Assistants. The platform promises significant productivity gains of up to 50% in client service delivery. Read more.
Oliver Wyman chosen to conduct governance review of FIFPRO - Teams from OW’s London and Dutch offices have been engaged to assess FIFPRO’s leadership, decision-making processes. The organisation, football’s largest governing body for professional footballers, is seeking to overhaul the service it provides for players. Read more.
Best of the rest: Accenture acquires procurement consultancy Insight Sourcing, Accenture acquires tech consultancy 6poin6, Oliver Wyman acquires payments consultancy Innopay, Huron acquires philanthropic consultancy GG+A, Grant Thornton elects new UK Chief, Founder of Portas Consulting transitions to Chair.
Chart of the Week 📊
Verdantix releases its 2024 ESG & Sustainability Consulting Green Quadrant.
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Interesting DetoursKKR quietly exits the music industry
It was announced deep down in a recent press release that KKR is exiting the music business, despite indicating just 2 years ago its commitments to the industry as “long-term owners who are deeply committed to respecting artists”.
The firm’s $1.85b sale of its ‘Chord’ music catalogue to Universal Music Group and family office Dundee marks a 68% notional gain over its original purchase price of $1.1b 2021. Although this topline gain doesn’t include the £200m cost of acquiring Ryan Tedder’s catalogue, interests in ZZ Top and John Legend's music.
The move is reportedly due to the rise in interest rates forcing a revaluation in the industry’s growth prospects. Read more.
Poll Review 🗳️
32% of voting BTO readers care if the firm they work for is Net Zero. That percentage is surely increasing over time, given 37% of Gen Z consider climate change their No. 1 concern. As of today, knowing how many have actually made this commitment is difficult to say, given there is almost no information available on the topic.
We’re actually collecting this data. If you’re interested in joining the team of volunteers collecting this first-of-its-kind dataset, then get in touch.
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That’s all folks. Don’t forget your timesheets.
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