Simon-Kucher & Partners on track for yet another record-breaking year

01 August 2018 Consultancy.eu

Simon-Kucher & Partners is on track to booking yet another record-breaking year. Powerhouse markets Germany, France and the UK are driving the firm’s steep growth trajectory. 

In a press statement released yesterday, Georg Tacke, CEO of Simon-Kucher & Partners, stated that the management consultancy has in the first half of 2018 booked 19% higher revenue compared to the same period the year previous. “The past six months have been the strongest since Simon-Kucher was founded in 1985,” he said. In comparison, the global consulting market is estimated to have grown between 6% and 10% in the same period, depending on which analyst firm is sourced.

Revenue realised across the firm’s footprint of 37 offices in 20+ countries stood at €147 million in the period between January and end of June, and with a sales funnel of €166 million in the pipeline, “the second half of 2018 is set to be just as impressive,” commented Tacke. 

The sectors software, media, industry and tourism were the main drivers of growth – they all saw fee income jump by more than 50%. “These sectors are subject to extreme changes as a result of new digital opportunities. Many companies are still insufficiently prepared for these changes and as a result we are seeing heightened demand for advice on how to capitalise on opportunities,” explained Tacke. 

Unlike most of its rivals, Simon-Kucher & Partners focuses chiefly on growth consultancy. The firm’s offerings are geared at helping companies, multinationals, corporates and mid-sized companies expand their market share through entering new markets or enhancing business models, and with optimising top-line performance through among other areas improved sales, marketing and pricing effectiveness. Simon-Kucher & Partners on track for yet another record-breaking yearCountries that contributed most to growth were the larger markets of Germany, France and the UK. “In all these three markets we achieved growth rates of around 25%. This shows that the so-called saturated markets still offer great sales potential.” Smaller offices too are demonstrating strong performance; Simon-Kucher’s Dutch office for instance saw its workforce grow by 26% in six months, building on 28% revenue growth booked last year. 

The consulting firm has nevertheless continued its international push as part of its roadmap to become a truly global firm and a challenger, in terms of size, to larger peers such as A.T. Kearney, Oliver Wyman, Roland Berger and Strategy&. In 2016 Simon-Kucher & Partners expanded into Switzerland (Geneva) and Sweden (Stockholm), and pushed deeper into Germany and the US with new offices in Hamburg and a second office in Silicon Valley. In 2017 it opened an office in Hong Kong and in the first half of this year the consultancy opened its first on the ground operation in Africa, in Cairo, followed by an office in Chicago, Simon-Kucher’s sixth location in the US. 

Last month the management consultancy also opened a locale in Shanghai. “China is one of our core markets,” said Tacke. “Shanghai is a global leading financial center and an important economic hotspot. The opening of a new office is therefore a logical step – we can now better serve our customers in the region and further expand our Chinese activities.” Within the space of a few weeks, a new office in Mexico will follow, which will become the firm’s third Latin American presence. 

Looking ahead towards the end of 2018, Tacke, who joined Simon-Kucher just three years after its founding and has been leading the company since May 2009 (from 2009 to 2016 together with Klaus Hilleke), said: “We expect total revenue to near the €290 to €300 million mark.” Just in January this year, the firm celebrated achieving the milestone of €250 million in revenues.

Related: Simon-Kucher sees revenues soar and footprint surpass 1,000 staff.

BearingPoint books 8th consecutive year of growth since buyout

11 March 2019 Consultancy.eu

BearingPoint has booked its eighth consecutive year of growth since gaining independence, lifting its global revenues to a record €739 million.

“I am proud that we were able to continue our path of sustainable and profitable growth in 2018 and reached the highest revenue ever,” said Kiumars Hamidian, who took over the reins at the management and technology consultancy in September last year. 

Underpinning the firm’s 4% growth, BearingPoint made over 1,100 new hires in 2018, lifting its headcount to over 4,500 employees. The partnership was enlarged with the appointment of 21 new admissions, of which 14 were promoted internally, and 7 recruited externally. “This demonstrates our attractiveness as employer of choice for top talent and confirms our commitment to the model of an independent partnership fully focused on client service,” said the firm’s boss in a press statement.

Western Europe was BearingPoint’s powerhouse region for growth last year. The regions France and Benelux (Netherlands, Belgium and Luxembourg) and the United Kingdom & Ireland booked growth “far above the market average”, said Hamidian. While not disclosing exact numbers, according to the latest data available, UK’s consulting industry on average grew by just over 5% last year, France saw its advisory market accelerate to over 6% growth, while the Benelux recorded growth of around 4%. Revenues of BearingPointIn the latter region, the consultancy last year launched an office in Luxembourg, where it has been supporting clients since the turn of the century, and acquired Belgian firm Inpuls, a data specialist, doubling its size in the country. In the largest of the three markets, the Netherlands, BearingPoint grew its team to over 60 consultants. 

Founded in 2009 in its current form, BearingPoint’s roots go back over 100 years to the early days of two of the biggest names in professional services: Arthur Andersen, founded in 1913, and KPMG, founded in 1987. Following a 2001 spin-off of KPMG Consulting from its Big Four parent KPMG, the BearingPoint brand entered the stage, and after the firm buckled to financial difficulties in North America in 2009, the then successful European division decided to complete a management buyout. 

Under the leadership of Peter Mockler, who passed on the baton to Hamidian, the renewed BearingPoint has been a remarkable success story since, growing its revenues from €441 million back then to today’s €739 million. The firm now has offices in 19 European countries, with locales in Casablanca and Dubai used to serve the Africa and Middle East markets. Outside EMEA, BearingPoint has offices in Asia and the US, and to cover other regions, it works with strategic partners: West Monroe Partners in North America, Grupo ASSA in South America, and ABeam Consulting in Asia.

Organised across three divisions, consulting last year recorded 6% growth, while the software solutions business grew slightly slower than in previous years. The ventures arm continued its expansion, investing in Insignary, an Asian start-up that develops open source software security and compliance. Two years ago the venture capital unit took a stake in Norwegian insurance technology start-up Tribe.

Looking ahead, Hamidian said that the firm is well on track to deliver on its long-term strategy. “The execution of this strategy will allow for more success and further growth in the upcoming years,” he commented, highlighting markets, portfolio and people as the key pillars.

Related: Kiumars Hamidian unveils his first focus areas as BearingPoint's new CEO.