KRS Market Insights: Jul-Dec 2023

A Message from Our Leaders

Kerone Daniel

In the second half of 2023, companies shifted towards more aggressive hiring strategies, particularly in Q4.

Two key factors contributed to this trend:

1. Successful onboarding of new Partners in early 2023, who have now ramped up and are delivering revenue.
2. BioPharma organisations adapting to current financial conditions, allowing better visibility and allocation of consulting budgets for 2024.

Despite the push for growth, consulting firms continue to face risks of capital loss and Partner attrition due to individual or organisational mismatches. Our Talent Strategy & Intelligence (TS&I) team has analysed both successful and unsuccessful Partner hires and is rolling out strategies to mitigate risk and ensure successful onboarding.

As macroeconomic factors stabilise, we anticipate a renewed “war for talent” as consultancies focus on sustaining organic growth. Firms must continue to differentiate their value propositions and communicate them effectively.

“The year has rounded off positively, and we look forward to seeing companies continue to achieve aggressive growth targets as we prepare for the year ahead.”

Life Science Consulting Market Overview

Three key trends have emerged in H2 2023:

1. Despite high interest, deal closings remain low due to misaligned value drivers between buyers and sellers.
2. Increasing demand for Product Managers with subject matter expertise (SME) to unlock the strategic value of products and platforms.
3. Predominant recruitment focus at the Principal level.

These trends will shape firm priorities and competitive positioning in the year ahead.

1. Acquisition Appetite Surges, But Deals Remain on Pause

The complexity of Life Sciences commercialisation, demand for continuous innovation, and specialised expertise have driven interest in M&A. However, deal closings have remained low, largely due to misaligned value expectations.

Value Drivers: The Buyer’s Standpoint

‍‍Consultancies with deep therapeutic focus or market specialism are positioned for high-value acquisitions. Firms offering “depth” within core business functions can drive additive revenue and dominate market segments. Yet, the lack of boutique consultancies demonstrating unique specialism has slowed acquisition activity.

Value Drivers: The Seller’s Standpoint‍

Many consulting firms hold misconceptions that affect readiness to sell. In discussions with 24 Life Science consultancies:

• 75% actively review growth strategies for PE investment or strategic acquisition.
• 29% report they are not ready to sell, often due to unrealistic financial valuation expectations.

To attract premium offers, target firms must:

• Perform optimally at the time of transaction
• Show clear upside potential
• Demonstrate a defined exit strategy

Flat market conditions and constrained revenue growth have led some firms to pause discussions with potential buyers.

2. Maximising Value Through Data-Driven Solutions

The consulting industry has seen a surge in adoption of data platforms and products, offering rapid, actionable solutions to client challenges.

The Value of Product Managers with SME Expertise‍

Product Managers with deep SME knowledge are critical to translating product value to clients. Their market insight allows consultancies to:

• Map client pain points to product offerings
• Identify competitive gaps and relevant features
• Navigate regulatory challenges and complex market dynamics

Data and platform solutions have become core differentiators for consultancies in today’s competitive climate.

3. Principal-Level Recruitment Drive

48% of KRS placements in H2 2023 were at the Principal level.

Why Principals?‍

Principal Consultants support project management, business development, and thought leadership—mirroring aspects of Partner responsibilities. Principals are a cost-effective alternative to hiring Partners, contributing to revenue growth while developing a book of business for eventual Partner promotion.

Organic Growth by Business Type (H2 2023)

• 52% of hires: boutique/specialist consultancies
• 19%: mid-sized to large consultancies
• 29%: large/generalist consultancies

Talent Consulting

Our TS&I team delivers data-driven recruitment strategies, helping clients refine employer value propositions and attract top consulting talent globally.

Recent Projects:

• European consultancy expansion into the US
• US consultancy expansion into Europe
• EVP development for boutique firms, including first full-time salaried hire
• European talent mapping for Equity Partner recruitment

Core Services:

• Competitor Insights & Salary Benchmarking
• Employer Branding & EVP Assessment
• DE&I Talent Pipeline Strategy
• Global Expansion Strategy & Market Analysis

Diversity, Equity & Inclusion

Women in Leadership – H2 2023 Report‍

We interviewed 23 leading women in Life Science consulting to explore barriers to female representation at senior levels. Key obstacles include:

• Bias in performance evaluations
• Limited mentorship and networking opportunities
• Challenges faced by working mothers

The report offers practical interventions to improve organisational DE&I practices and support women on the path to Partnership.

Key H2 2023 Article Summaries

The Evolution of Working Practices

• 84% report weaker training in remote conditions
• 62% report increased working hours during the pandemic
• 79% negative towards fully remote working models
• 40% of Managers over-utilised at 90–110%
• 63% would not work at a company without flexible/remote options

Managing Myths and Misconceptions in Acquisition

• 75% of consultancies reviewing PE investment or strategic acquisition
• 55% specialised in Pricing & Market Access
• 27% specialised in Commercial Strategy
• 29% not ready to sell due to misconceptions
• Key myths: Revenue ≠ Value, the Right Buyer Will Find You, Size Determines Success, Not Knowing Your End Goal

Internal KRS Updates

Who We Are‍

KRS-Associates is the largest recruitment firm dedicated to Life Science strategy consulting, providing data-driven talent acquisition across the full Life Sciences value chain.

London Bridge Office – 2024 Launch‍

KRS will expand into new sectors including Healthcare, ESG, Energy & Renewables, Private Equity, TMT, Automotive & Industrials, Retail/Consumer, while maintaining a specialist-led approach to consulting recruitment.

A Message from Our Leaders

Steve Robertson

“With promising revenue growth demonstrated across businesses, there is now a strong demand for delivery consultants to support with project execution.”