New MW Header

October 31, 2013
MW Transaction Analysis 
PwC Agrees to Buy Booz & Company 
to Expand Consulting Services 
                    

Transaction Facts
  • PricewaterhouseCoopers (PwC) announced yesterday that it will buy Booz & Company. Financial terms of the transaction were not disclosed.
  • PwC, based in New York, currently has more than 184,000 employees in 157 countries.
  • If the Booz acquisition is completed, PwC will have an additional 3,000 people in 57 countries. Conflicts of interest provisions of the Sarbanes-Oxley Act would likely require the firms to eliminate conflicts between audit and consulting clients prior to the transaction being completed. This could reduce staffing and geographic coverage.
  • Booz partners are scheduled to vote on the acquisition in December.  
Audit Firms Seek Growth Through Expansion Into Consulting 
  • PwC is one of the world's Big Four audit firms, the others being KPMG, Ernst & Young and Deloitte. With the exception of Deloitte - which never stopped emphasizing consulting services - large audit firms largely divested or separated their consulting services from their audit services in the wake of Sarbanes-Oxley in 2002.
  • For example, PwC sold its consulting business to IBM in 2002.
  • In recent years, audit firms have been re-investing in consulting services as revenue growth in their core businesses has slowed. All of the Big Four have made several acquisitions designed to expand their consulting businesses and global footprint in recent years.
  • The two firms are positioning the acquisition as a merger. But with annual revenue of $32 billion reported for 2012, PwC dwarfs Booz, whose annual revenue has been estimated at about $1 billion.    
For more information, read the press release.

martinwolf was not the advisor in this transaction.

About martinwolf    

 

                
             San Francisco, CA                                                Bangalore, India

With offices in San Francisco and Bangalore, India, martinwolf is a leading middle market M&A Advisory focused on companies with services-based business models. Since 1997, our team has completed more than 115 transactions in six countries. We are a five-year member of the Merrill Lynch PS Referral Network, and were selected as ICICI Bank's (India's leading private bank) exclusive strategic partner for acquiring U.S. IT companies. 

 

The firm is also a presenting sponsor of the Global IT M&A Forum

 

martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.

 

To learn more about martinwolf, contact Matthew Putzulu at mputzulu@martinwolf.com.

 

martinwolf 2013

      View our profile on LinkedIn   Follow us on Twitter



Quick Links

MartinWolf.Com

 

  IT M&A Forum  

 

 

 

_____________  

 

"You will either step forward into growth or you will step back into safety."

 

Abraham Maslow

 

__________