Global online business project and independent consultant matchmaking marketplace MBA & Company has revealed European private equity firms could save millions each year by switching due diligence provider. The business argues many are spending large amounts unnecessarily.
Global online ‘business project and independent consultant matchmaking’ marketplace MBA & Company today reveals European private equity (PE) firms could save up to £8.5m per year by switching due diligence provider, arguing that many are spending large amounts unnecessarily in employing traditional consultancies to carry out this essential service.
With a traditional consultancy typically charging £15k per due diligence project, and open marketplaces such as MBA & Company’s charging far less – around £7.5k – the collective cost for the circa 1,140 projects due to be carried out for European PE firms over the course of 2014 stands at either £17.1m or £8.5m (half), depending on whether said firms ‘stick or switch’.
Award-winning venture capital (VC) fund manager MMC Ventures cut costs for a recent three-day pre-deal commercial due diligence project by a dramatic two thirds by switching provider.
MBA & Company ‘matched’ an appropriately-qualified independent consultant – a London Business School MBA graduate with five years’ experience at Bank of America Merrill Lynch and a jewelry sector background – to MMC Ventures’ specific needs within days. The total due diligence project turnaround time was under two weeks, with a request posted on MBA & Company’s website (www.mbaco.com) 18th June, the consultant secured 24th June and everything wrapped up by 28th June.
Outcome – MMC Ventures completed due diligence and successfully invested in an online jewelry marketplace
Total cost – £2k (saving £6k compared to traditional consultancy)
MMC Ventures partner Jon Coker says:
“Not only are we proud investors in MBA & Company, but we’ve successfully used its services to cut our due diligence costs for a recent pre-deal project by 66% – using one of its listed independent consultants rather than a traditional consultancy’s services. We recommend anyone wanting to reduce costs without sacrificing standards checks out this innovative online marketplace. For us it was simple – we posted our due diligence project on MBA & Company’s website, and within days were ‘matched’ with a highly skilled consultant ready to start right away. We plan to use MBA & Company’s services again, as the cost-savings are significant and the quality hasn’t dropped.”
MBA & Company founder and CEO Daniel Callaghan says:
“For fast-moving PE and VC firms, we know truly agile strategy and operations support is very attractive – we’re seeing rising demand for the due diligence professionals available via our website. Using highly qualified independent consultants for projects such as MMC Ventures’ can make far more sense than sticking with the often slower more costly services of traditional consultancies. Along with due diligence, we’re increasingly seeing these firms – and their fast-growing portfolio companies – posting operational change, market assessment and strategic planning projects.”
MBA & Company provides PE firms and portfolio companies with on-demand access to the world’s best independent consultants, each with a minimum five years’ commercial experience and top academic credentials.
*Source: EY, Headlines Q1 2014, http://www.ey.com/GL/en/Services/Transactions/EY-multiple-european-private-equity-watch-Issue-2-2014-Overview#.U489Ay_bbi8
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About MBA & Company
Founded by old school friends Daniel Callaghan and Adam Riccoboni in 2009, MBA & Company was developed to help fast-growing businesses access a highly-skilled and flexible workforce for cost-effective project work.
The business has been recognised amongst the highest potential in Europe, being named a UK Start Up Award Winner, Hot 100 Start Up for several years, Red Herring Europe Top 100 finalist, Real Business Future 50 Top 10 Judges Pick and one of 12 non US-based New York City Venture Fellows as selected by former Mayor Michael Bloomberg, Fred Wilson and Sir Martin Sorrell.
Having recently secured a second £800k round of funding, MBA & Company is at a very exciting growth stage. Backed by London and New York Mayors among others, MBA & Company is changing the game and is certainly ‘one to watch’.