BCG acquires procurement and operations consultancy Inverto

28 September 2016

The Boston Consulting Group has acquired Germany-based Inverto, a move which further diversifies its range of services for clients in the procurement and operations segment. The addition sees more than 130 management consultants bolster BCG’s capabilities and capacity in a fast growing consulting segment, as digitalisation and Internet 4.0 developments come online.

Inverto was founded in Cologne, Germany, in 2000*. The firm provides supply chain optimisation and procurement services to companies across Europe, including multinational corporations, small and medium-sized enterprises (SMEs), as well as large private-equity firms.

Over the past fifteen years the consultancy has enjoyed steady growth, expanding its footprint with offices in Germany, Austria, the UK, and China. Today Inverto employs more than 130 staff and delivers a range of services, from identification, evaluation, and implementation of procurement savings to improvement in strategy and processes and organisational transformation.

In a bid to further bolster its capacity in the area of procurement and operations, The Boston Consulting Group (BCG) has fully acquired Inverto. The deal sees Inverto become an independent entity within BCG, with the firm's three managing partners set to continue to lead the firm’s day-to-day operations.

BCG acquires procurement and operations consultancy Inverto

The deal significantly grows BCG's headcount in Germany, where the consultancy has seven offices**. With the move, BCG aims to tap into the fast growing market for digitalisation in procurement, Industrial 4.0 and technology integration in the wider operations chain of organisations, with consultants often called in to solve critical issues. According to a recent study conducted by BCG's German unit, Industry 4.0 could realise productivity gains of between 5% and 8% in manufacturing, down the line leading to an increase of 1% to Germany's GDP. A wider research, by Strategy&, found that Industry 4.0 will add a forecasted $493 billion in revenue gains per annum over a five year period to European industrials sectors.

Carsten Kratz, Senior Partner at BCG and head of the German management team, says, "We are very pleased to welcome Inverto to BCG. With their proven technical expertise, and a business model that would appeal to our clients, the team at Inverto is a good fit for BCG.”

Kiran Mazumdar, Managing Partner of Inverto, adds, "BCG is an ideal partner for Inverto, particularly at this point in time. The merger opens up great new opportunities for both the firm and all our staff. This partnership presents us with an ideal solution that will enable us to tap into the global market’s dynamic growth potential, while simultaneously adding our capabilities to BCG's already extensive range of services.”

Kratz continues, "Modern management consulting requires the synergy and cooperation of the brightest minds, as well as the best methods, tools, and data analyses. This also applies to all areas of expertise that we are involved in – including segments in operations such as procurement and supply chain management. In all these aspects, Inverto is a meaningful addition to our capabilities."

BCG's M&A track

Earlier this year BCG acquired a stake in matchmaking platform Opportunity Network, while last year it bought TSG Consulting (Australia) and BrightHouse (US). In 2014 digital consulting firm S&C was picked up. Commenting on the firm's M&A strategy, Krazt says: "We will continue driving our business forward by building on our own growth, as well as through specific complementary acquisition."

* The founders of Inverto are Markus Bergauer, Kiran Mazumdar and Frank Wierlemann.

** BCG's German offices are based in Düsseldorf, Berlin, Cologne, Stuttgart, Hamburg, Munich and Frankfurt.


SQW Group purchases property-based regeneration consultancy

19 April 2019

UK consulting firm SQW Group has completed its first acquisition since it completed a management buyout in January 2019. BBP Regeneration joins the company having collaborated with SQW for more than 20 years.

Established in 1983, SQW Group now operates all over the world. Comprising SQW, Oxford Innovation, Oxford Innovation Services – one of the UK’s leading innovation centre operators – and Oxford Investment Opportunities Network, the organisation’s origins can be traced to Britain’s two ancient university cities: Oxford, through Oxford Trust founders, Martin and Audrey Wood, and Cambridge, through SQW’s work in producing The Cambridge Phenomenon.

The consultancy specialises in public policy, working with entities from the public, private and voluntary sectors to research, develop, implement and evaluate social and economic development interventions. It now employs over 250 people across regional offices in London, Oxford and Edinburgh, and provides business support to over 4,000 entrepreneurs and small businesses each year. At the start of 2019, SQW secured its independence in a management buyout, advised on by M&A experts from Liberty Corporate Finance and Penningtons Manches.

SQW Group purchases property-based regeneration consultancy

SQW has strengthened its position as a provider of services across the business spectrum with the acquisition of BBP Regeneration. Founded in 1994, the consulting firm specialises in land and property-based regeneration and growth schemes, and is a leading social and economic development consultancy. 

The two firms first worked together over 20 years ago, when SQW and BBP collaborated to develop the first Regional Economic Strategy for the South East. More recently, they developed an economic strategy for Thanet and are now working together in locations stretching from Cwmbran via Oxfordshire to London.

With the addition of BBP, SQW can now provide an integrated advisory service for organisations developing property schemes which deliver economic benefit to their local area. By joining SQW, meanwhile, BBP hopes to further enhance its ability to support clients in delivering property and place-making ambitions. 

Speaking about the deal, SQW CEO David Crichton-Miller commented, “The UK more than ever needs solutions to the challenges of places – of high streets under threat, of meeting housing delivery targets, and of both economically over-successful and economically challenged towns and cities – and the combination of SQW and BBP is uniquely suited to developing those solutions. [This deal] brings together critical and complementary services relating to places to serve our clients with leading edge and practical advice.”

Andy Smith, Director of BBP Regeneration, added, “SQW shares with BBP the same values of seeking to provide outstanding, practical, real world advice that helps get buildings built and places developed.  We greatly look forward to the opportunities that come from joining our two organisations together.”