10 Mar Acquiring Minds: The Appeal and Risk of Buying a Consulting Firm
Nick Munsee acquired a niche white-collar business—Hales Engineering, a traffic engineering and transportation consulting firm. Unlike typical blue-collar self-funded search acquisitions, this business boasts strong 47% margins due to limited competition. However, the previous owner was deeply involved, handling both technical expertise and client relationships. To mitigate risk, Nick ensured a replacement leader was in place before finalizing the acquisition. While margins may shrink under new ownership, he purchased the business at a low multiple, making it a solid investment. Now, Nick focuses on working on the business rather than in it, and not on a full-time basis. This case highlights the potential for acquiring profitable consulting firms, a sector that searchers surprisingly overlook. Here’s Nick Munsee, co-owner of Hales Engineering.
