Bain & Company buys due diligence boutique Tech Economy

15 June 2021 Consultancy.uk 2 min. read
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Bain & Company has acquired Tech Economy for an undisclosed fee. The technology specialty consulting firm boasts deep expertise working with private equity firms on technology due diligences – something which will greatly compliment Bain’s existing private equity offering.

Robert Pierce, founder and CEO of Tech Economy, said of the move, “In order to understand the complexities of technology, you need the right type of knowledge, and our team has industry-leading capabilities in this area.”

Founded by William Bain Junior – the same entrepreneur who launched Bain Capital – Bain & Company has deep, historic ties to the private equity sector. As such, the management consultancy has become recognised as one of the leading professional services firms in the private equity sector – a reputation which will be further bolstered by its purchase of Tech Economy.

Bain & Company buys due diligence boutique Tech Economy

Tech Economy is a technology focused specialty consulting firm, which conducts buy-side and sell-side due diligence for the technology sector, as well as value creation assignments. Its clients include leading global and mid-market private equity firms on both sides of the Atlantic, as well as their software and tech enabled portfolio companies.

With technology start-ups becoming an increasingly attractive prospect for investors, it has become crucial for private equity firms to understand the technological infrastructure and processes of any digitally enabled business they might invest in. These firms range from retail to healthcare to financial services, and Tech Economy’s team has already completed more than 200 assignments for technology investors and strategic buyers, helping them understand these aspects across a diversity of industries. In the process, they have strong relationships with clients in Europe and North America.

The firm covers the entire private equity ownership lifecycle, from pre-investment technology diligence, post-closing 100-day planning, tech value creation, through to vendor due diligence exit preparation – and it will now contribute this offering to Bain’s own competences. At the same time, the acquisition will boost Bain’s knowhow, as Tech Economy CEO Pierce will join Bain as an Expert Partner in London, while senior technologists Bruce Miller and Dirk Bartels will join as Vice Presidents in Boston and Berlin respectively.

“Technology due diligence is not just something that is limited to the technology sector, which has boomed over the past few years,” said Hugh MacArthur, global head of Bain & Company’s private equity practice. “Robert and his colleagues bring deep expertise in examining not only the technology itself but the operations that drive it and we are thrilled to welcome them to our market-leading global private equity team.”