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Exec Sum
McKinsey's Bob Sternfels faces off Rodney Zemmel in a runoff for the firm's top leadership position, revealing internal divisions following the Opioid Crisis
UK consulting M&A has defied global trends, with valuations outperforming share indices and strategic buyers leading the way
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Industry News
The Headlines 📈
McKinsey’s Bob Sternfels forced into leadership ballot
Bob Sternfels faces a run-off against Rodney Zemmel for McKinsey's top job after failing to secure a majority in the second round of voting. The vote included McKinsey's 750 senior partners worldwide, with Zemmel emerging as the main challenger from 10 candidates. Sternfels' bid for a second term as McKinsey’s global managing partner likely reveals internal rifts over his leadership and recent cost-cutting measures. Read more.
UK Consulting M&A defies M&A trends
UK consulting continued at pace despite global M&A falling of a cliff for much of 2023. The result being that “Consulting sector valuations outperformed most share indices despite global economic headwinds”. Strategic buyers were the sector’s most acquisitive buyer category and most deals (78%) were focused on traditional advisory services, despite the hype around AI. Several ‘super-strategic’ acquisitions (McKinsey + Iguozio, Elixirr + Insignium, LEK + Hi Mum! Sad Dad) enabled strategic buyers to see both geographical and sector diversification. Full chart below. Read more.
PE predicts deal rebound at Davos
LP-driven pressure to return cash is expected to push buyout houses to sell off investments this year. With dry powder at an all-time high ($2.8Tn) heading into 2024, firms had been waiting to take advantage of a revaluation in private asset prices. However, a market-wide recall (investors calling in returns) will likely result in a widening gap between the funds that are able to hold onto capital long enough to make cheap purchases, and those that are forced to return capital. Read more.
Wipro promises early signs of market bottom
Share prices of Indian IT consulting firms Wipro and Infosys soared after both firms beat earnings expectations, ending a streak of several quarters of missing estimates. The companies's strong performance was driven by an increase in large deals, indicating early signs of a potential market-wide rebound. Read more.
The News 📰
PwC drops US diversity goals - PwC has dropped several of its US diversity targets and ended race-based eligibility criteria for student internships, citing need for ‘rigour’ in D&I efforts. The move comes following the Supreme Court ruling against affirmative action and pressure from rightwing activists. Read more.
McKinsey revenue from gov. contracts plummets - despite growth in total US government spend on consultants, McKinsey’s revenue as a prime contractor to the US government has fallen to $55m, representing a 9-year low for the firm and down by over 60% from a high of $142m in 2018. Read more.
Alvarez and Marsal Exec detained in UAE - Guy Wall, MD of A&M’s Dubai restructuring practice has been detained on charges of financial reporting fraud. The charges relate to NASDAQ-listed Brooge Energy Ltd., itself previously charged with fraud by the SEC, and allegations that he attempted to remove documents from Brooge’s offices without authorisation. Read more.
EY keeps on UK boss for 2nd time - Hywell Ball has been given a 1-year extension to June 2025 to continue leading the Big 4 firm. The move has been surrounded by controversy around the firm’s partner retirement age of 60. EY’s wider UK partnership was not consulted regarding the decision. Read more.
Best of the rest: New female-led consultancy to launch in Saudi Arabia, BCG purchases carbon removal credits, Accenture acquires marketing specialist Jixie, Oliver Wyman acquires technical consultant SeaTec, Tim Bethel in as Vantage Point CEO, Wavestone acquires Aspirant Consulting.
Reader Poll 🗳️
Chart of the Week 📊
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Working Effectively
Productivity Hacks ⏳
Task logs
Every time you switch from a task, take 2-seconds and add a log entry
Use a Slack channel, Teams, Task Manager or note file for this
At the end of the week, analyse how you’ve actually spent your time
…what could be improved?
CONCAT()
Combine 2 or more text strings into one in Excel
e.g.
When: A1 - “Pls ”, A2 - “fix.”
CONCAT(A1, A2) = Pls fix.
Excel Shortcuts 💻
Open Pivot Table:
ALT + D + P
Remove filters:
Alt + A + C
The Coffee Break ☕️
Turns out consultants do MBAs so they can become… consultants
Contribute 🛣️
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