On Mergers

Firms of professional consultants can gain from merger by:

1. Offering complementary skills to an enlarged client base.

2. Providing the owners (and key staff) with a business which might be sold, providing them with a tax efficient exit or pension fund.

3. Gaining from economies of scale: systems not previously affordable might be acquired; support service experts not previously available in house such as HR and PR might be now justified: office space can be used more efficiently and positioned to enhance branding; branding and scope of offer can be improved to attract more clients and best staff.

A consultant's assets are its people. Its "assets" leave the premises every evening so they should always look forward to working the next day.

Professional firms contemplating merger are well advised to consider differing cultures or work ethics, and recognise where different working practices can be beneficial to seamless consolidation.

There is a great deal to contemplate in addition to the accounts of the formative firms.