Advisory and consultancy firms in Germany, Austria and Switzerland (DACH) remain in strong demand with suitors from the US and the UK, local dealmakers said.

The DACH market offers opportunities for US financial advisors in particular, according to Nicholas Hanser, partner and head of technology investment banking at Saxenhammer, a Berlin-based M&A consulting firm for entrepreneurs.

“The valuation gap between American and German companies has increased, which makes the latter attractive targets,” Hanser said.

An overview of deals in the consultancy & advisory sector in DACH since February 2023, according to Mergermarket data. 

Earlier this year, US-based financial services company Stifel Financial Corp. [NYSE:SF] acquired Bryan Garnier, an independent full-service bank focused on European technology and healthcare companies.

Meanwhile, last November, Lincoln International, a Chicago-headquartered investment banking advisory firm, acquired the German technology and digital economy advisory boutique TCG.

The market has also seen bidders from the UK. For example, Telescope Advisory Partners, a Munich and Frankfurt-based transaction support, value-creation and innovation strategy consulting boutique specialising in commercial due diligence and strategy support, was acquired by Analysis Mason in November 2024.

Human capital

Dealmakers in the region expect the trend to continue. Two drivers are the need for a strong global network and the addition of know-how and expertise.

Saxenhammer’s Hanser said: “Acquisitions are often an easier way for US-based advisors to enter a new market than to penetrate it organically, which some of them have struggled to do.”

Meanwhile, an example of a deal that emphasised know-how came in May 2024. AlixPartners, a New York-based financial advisory and consulting firm, acquired the automotive specialist consulting firm Berylls.

Andrew Bergbaum, global co-head of AlixPartners’ Automotive & Industrial Practice, said at the time that the target’s “well-earned reputation for strategy and growth advice” would complement the bidder’s skills in financial and operational implementation.

Despite the demand, transactions in the consultancy and advisory segment can be challenging from a due diligence perspective. The need for expertise has a corollary: people are the main asset in consulting and there is a risk that they might leave.

Rainer Loges, partner at Gleiss Lutz, said: “This risk must be managed diligently with effective communication and ensuring everybody sees the benefits of the transaction as well as adequate financial incentives.”

Relationships with clients of advisory firms may also be impacted by an acquisition or merger. Clients who have chosen to work with a boutique advisory firm for certain reasons may consider taking their business elsewhere if it is taken over, Loges said.

Demand continues

The industry is fragmented: Germany’s consultancy industry alone is worth EUR 43.7bn and employs more than 220,000 people, according to the German Association of Management Consultancies (BDU). Market research suggests that there are more than 88,000 management consultancy firms in Germany.

Demand remains strong. Saxenhammer’s Hanser said that he regularly receives inbound requests from bigger European and US financial institutions looking to expand their footprint in the DACH region.

Names to watch include Grant Thornton AG, the German wing of the international auditing firm. It has hired Perella Weinberg for a strategic review. Partners at Grant Thornton UK voted unanimously for a deal with Cinven at the end of last year.

At the same time, German players are also thinking about their own moves. For example, Christ & Company, is planning to invest up to EUR 500m in acquiring consulting and tech companies to grow internationally.

Dealmakers in DACH can keep busy in the months ahead thinking about the consolidation of their own industry.