Is mgmt consulting (tech, strategy, hr, etc.) a promising field for the next 10-20 years? If you can invest in MBB and big fours, would u invest in it?

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Think OP is asking figuratively M1 :)

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Yeah, I think it's a good business to invest in.

Think about what happened to the airlines during the pandemic, they were all on life support.

Then think about the consultants, all the baffled companies/governments had to hire them to tell them what to do and they saved money on airplane tickets and hotels.

Wherever happens in the broader economy, the consultants will make money.

I’d def go long ACN. Breadth and $$$ muscle.

Pure play T1 segment would either evolve (a la BCG Tech Advantage + Gamma + Digital ventures + Platinion etc.) or massively struggle (a la Bain).

B4 - are and will always be implementation/ PMO consultants at best, trying to be “functional management consultants” faking “strategy” capabilities. It’s all about relative scale of their practices. Deals/ Transactions is one area where they can really outshine the competition. So far I have not seen any of them being laser focused on doubling down in that area. They’re still fascinated with the “digital transformation” fog and losing touch with their DNA.

Rest of them (incl some of the T2 firms) would either go hyper niche or be swallowed up. Some of my conversations with them felt like I’m talking to a firm from 2010 🤦‍♂️ Some of the practices in those firms are dead already, just don’t know it yet.

Obv take it with a pinch of salt but am sure the pattern is apparent here.

On a related note - does anyone have a good source to track M&A in professional services?

Thanks.

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As an equity owner: absolutely
As an employee: absolutely not

likesmart

Invest how?

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Buy stock

MBB is owned by the partners

ACN is publicly traded though

Most consulting firms aren’t public, so you won’t be able to invest in it unless you become a partner.


Accenture is public tho and the stock has been doing really well, so maybe that’s a good investment.

Buy stock in ACN, that's how

MBB is 100% owned by the partners

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