SCD Advisory advises on Hypothesis and Insync deals
Boutique M&A advisory firm SCD Advisory has kicked off 2021 in style, completing two of its sell-side mandates in the consulting and IT services segments.
The world’s leading strategy consulting firm McKinsey & Company surprised many when it snapped up digital consultancy Hypothesis in February this year, marking the firm’s first acquisition in its 50 years of operation in Australia. One party which wouldn’t have been surprised though was boutique SCD Advisory, to which Hypothesis turned for its exclusive sell-side needs in the deal’s two year build-up.
Founded by seasoned international M&A professional Pierre Briand in 2019, the Sydney-based boutique has already established an impressive track-record, having among other advised deals on two sell-side sales to Deloitte – consultancy The Terrace Initiative and data analytics firm Bistech – in the two years since its inception.
With a focus on businesses in the professional services industry, SCD Advisory provides a full suite of M&A services across strategy, capital and deal-making.
According to the AFR, Hypothesis is believed to have sold for as much as $40 million. “It was great to have Pierre and the SCD team on our side throughout the process,” said co-founders Sean Heydenrych and Grant Hartland.
“They provided invaluable insight and experience throughout the two years of preparation we did before the deal, as well as being reliable, trusted advisers guiding us through stages of the transaction. We are very pleased with the result!”
On the deal, Briand said: “We are proud to have advised the founders of Hypothesis throughout their growth and exit journey. Their intense focus on high quality execution and their client-centricity is admirable and reflected in their strong business performance, which ultimately resulted in an efficient and rewarding sale process – finding a home within the world’s premier management consulting firm.”
Earlier this month, SCD Advisory announced its second deal of the year: the sale of Microsoft Gold partner Insync Technology to Rapid Circle, a private equity-backed firm from the Netherlands. Since founding in 2013, Insync Technology has grown to a 45-strong company generating revenues of over $12 million.
Expanding on SCD Advisory’s role, Nathan Belling, General Manager of Insync Technology, said: “They were great to have on our side throughout the transaction process. There is a considerable amount of work required in a transaction process and having their guidance and preparation beforehand ensured it all ran smoothly. Pierre was able to coach us through the many decisions that needed to be made and ensure a successful outcome was achieved.”
Briand added: “Nathan and the team were excellent to work with throughout the preparation and transaction. The deal with Rapid Circle was very efficient, due to Insync’s solid performance and the shareholder’s alignment and focus. This deal is a good example of how being well-organised can de-stress the transaction process, even a cross-border one such as this.”
M&A market
According to Briand, following a dip in professional services merger & acquisition activity in 2020, the local M&A market is set for a rebound this year. Notable deals completed so far this year include Accenture’s acquisition of supply chain consulting firm GRA, mid-tier management consulting firm Noetic joining forces FTS Group, and Cognizant’s purchase of digital consultancy Servian.
Speaking to AFR, Briand stated that thanks to the acceleration of digital transformation work brought about by Covid-19, all of the large consulting firms have potential digital bolt-ons on their radar. “There is a lot of buyer appetite in the market for innovative companies in the consulting sector, particularly those who can bring new ways of working to large consultancies and have the capacity to deliver large and complex transformations to their clients.”
