'Selling' a Consultancy: Four Key Considerations

Introduction

In recent years, private equity (PE) investment and corporate mergers and acquisitions (M&A) activity have continued to reach record levels across the life sciences industry. A notable proportion of this activity has been directed toward strategy consultancies specialising in life sciences, with competition for high-quality assets intensifying.

By analysing recent market trends and completed transactions, this article outlines four strategic considerations that Life Sciences Strategy Consultancies (LSSCs) should recognise when positioning themselves to attract external investment or pursue a future sale.

For clarity, we distinguish between two business models:

• Privately owned consultancies – firms owned entirely by founding shareholders (e.g. managing partner or partner group), with no external investment.
• Private equity-backed consultancies – firms that have sold a minority or majority stake to an external investor while founders retain an equity position.

Global Expansion Strategy

International expansion is often viewed as a natural evolution for successful consultancies and remains a critical factor in investor decision-making. A strong global footprint demonstrates a firm’s ability to replicate its operating model across geographies, generating recurring revenue, predictable cash flows, and scalable growth.

For investors, geographic diversification signals resilience. For sellers, it materially increases strategic appeal.

Strategic advantages of global expansion include:

1. Entry to new markets
2. Diversifying company markets
3. Gaining a competitive edge
4. New and expansive client base
5. Exposure to foreign investment opportunities
6. Increased revenue potential

We analysed the global presence of 17 consultancies that are privately-owned (i.e. those that may be looking to ‘sell’), and those that are backed by private investment (i.e. those that have previously sold a percentage of their business to external investors).

65% of consultancies were headquartered in the US and 35% were headquartered in Europe.

Main Findings

1. 41% of consultancies have expanded their secondary office to the US.
2. 38% of consultancies have expanded their secondary office to Europe.
3. 21% of consultancies have expanded their secondary office in APAC.

These trends reflect the relative scale of the US and European life sciences consulting markets, with firms typically expanding across the Atlantic to access larger client pools. However, expansion into APAC is accelerating rapidly, driven by increasing regulatory complexity, local market access challenges, and rising pharmaceutical expenditure.

APAC currently accounts for approximately 30% of global pharmaceutical spending, with healthcare expenditure projected to grow at ~7% annually, outpacing both the US and Europe.

Launching New Service Offerings

While deep specialisation remains highly valued, many consultancies are increasingly diversifying their service offerings to better support existing clients and unlock new revenue opportunities.

One of the most notable trends has been the rapid expansion of Market Access and Health Economics & Outcomes Research (HEOR) capabilities. These services are critical for securing optimal reimbursement while ensuring patient access to innovative therapies.

Many commercially focused strategy consultancies have recognised that integrating Market Access and HEOR capabilities strengthens their value proposition and enhances their attractiveness to investors.

We analysed 37 Commercial Strategy-focused consultancies that have launched Market Access and HEOR services:

• 78% launched Market Access via merger or acquisition
• 22% launched via organic growth

Acquiring specialist Market Access consultancies often delivers additional strategic benefits, including:

• Immediate credibility and depth of expertise
• Accelerated geographic expansion
• Established payer and regulatory knowledge across multiple markets

These acquisitions frequently target niche Market Access firms with strong regional footprints, allowing commercially focused consultancies to scale quickly and effectively.

The launch of a Market Access & HEOR offering through M&A brings additional strategic value for consultancies. For instance, several of these acquisitions additionally complement consultancies’ geographical expansion strategies. In our analysis, those companies that have been acquired are those solely focused in Market Access Consulting. Generally, these companies have significant expertise across diverse geographical markets which create greater value for Commercially-focused Strategy consultancies launching a Market Access practice.

Technology Platforms

As the life sciences industry continues to digitise, technology-enabled solutions have become a key differentiator for consultancies seeking to drive value with speed, precision, and scale.

Many firms are investing heavily in data analytics, digital tools, and proprietary platforms to support commercial strategy and Market Access decision-making. These platforms enhance evidence generation, insight delivery, and client engagement—capabilities increasingly valued by both clients and investors.

We reviewed 18 global boutique LSMCs that have launched a technology platform either through an M&A or internally

• 56% of consultancies have developed a technology-enabled platform internally.
• 44% of consultancies have launched a technology-enabled platform via an M&A.

Consultancies are organically growing by utilising tech platforms to provide Commercial Insights and deliver strategic Market Access. In addition, many consultancies are launching digital tools and applications through M&As, to bolster their existing capabilities and maintain their competitive advantage in a digitally transforming business environment.

• 22% of technology platforms were used for Commercial Insights.
• 27% of technology platforms are used for Market Access and Commercial Insights
• 62% of technology platforms are used for Market Access.

Technology platforms not only strengthen consulting offerings but also introduce scalable, repeatable revenue streams, which are particularly attractive in investment and valuation discussions.

Offering a Solutions-Led Model

Biopharmaceutical companies are increasingly seeking full-service partners capable of delivering integrated, end-to-end solutions. This trend has driven significant consolidation, particularly among Contract Research Organisations (CROs).

The global CRO market is expected to exceed $44 billion, fuelled by increased outsourcing, digital innovation, and demand for specialised expertise. To meet client expectations, CROs are actively acquiring niche consultancies to broaden their service portfolios and geographic reach.

Why do Pharma companies use CROs?

• Access to diverse capabilities and specialist expertise
• Improved global reach and patient access
• Higher quality and more efficient execution
• Reduced capital investment
• Faster development timelines
• Access to innovation and advanced analytics

Discussions with leaders of consultancies acquired by CROs reveal several consistent themes:

• CROs acquire smaller, specialist firms to create differentiated, full-service offerings.
• Due diligence typically focuses on:
  1. Depth and durability of client relationships
  2. Ability to cross-sell and expand solutions
  3. Scalability of delivery models

Businesses that generate multiple revenue streams and demonstrate consistent growth often achieve valuation uplifts beyond standard EBITDA-based multiples.

A review of the Top 10 global CROs shows:

• 70% have bolted on Market Access and Commercial Strategy capabilities through acquisitions of specialist consultancies.

CROs are particularly attracted to firms with solutions-driven, insight-led models, where there is strong alignment in client delivery and growth ambition.

Key Takeaways

1. Global Expansion

• Secondary expansion most commonly targets the US, followed by Europe.
• APAC expansion is accelerating due to rapid market growth and regulatory complexity.

2. New Service Offerings

• Market Access and HEOR capabilities are increasingly essential.
• Most consultancies launch these offerings through acquisition rather than organic build.

3. Technology Platforms

• Internal development remains the most common route.
• Platforms are primarily focused on Market Access enablement.

4. Solutions-Led Models

• CROs continue to acquire specialist consultancies to deliver full-service solutions.
• Market Access and Commercial Strategy capabilities are key acquisition targets.