Valuation of consulting firm Teneo set at £1.7bn in recent transaction

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In a surprising turn of events, Teneo, a leading advisory firm, has seen rapid growth despite a years-long slowdown in revenue for some of the world's largest corporate advisories. The firm's latest valuation of $2.3 billion marks a significant rise, suggesting that not all players in the industry have been affected by the economic headwinds.

Teneo, which has over 40 offices worldwide, has been making strategic acquisitions to bolster its presence. In 2023, it bolstered its financial communications division in London by acquiring PR firm Tulchan for £70 million. Previously, it had acquired the restructuring arms of PwC in Australia and Deloitte in the UK.

One of Teneo's most recent acquisitions was a ten-person energy team from the Cleantech advisory firm Apricum, as part of its expansion in energy consulting in Europe. While the exact size of this investment in billion-dollar terms is not specified, it is clear that Teneo is making significant investments to grow.

The firm's growth is even more impressive when considering the struggles of other major players in the industry. Companies like WPP and Omnicom have been grappling with the same slowdown in revenue due to financial headwinds across the global economy in 2022. Global management consultants like McKinsey and the Big Four have also experienced a slowdown, leading to redundancies and a slowdown in hiring.

Dealmaking behemoth CVC Capital Partners bought a majority stake in Teneo in a previous deal, and LGT Capital Partners, backed by Liechtenstein's royal family, has over $100 billion in assets under management.

Paul Keary, co-founder and CEO of Teneo, aims to double the group's turnover again within a similar timeframe. With competitors like Brunswick Group, FTI Consulting, FGS Global (backed by KKR), Alix Partners, and Flint Global growing at a fast pace, Teneo has hinted at continued acquisitions in its pursuit of ascendancy in a competitive sector.

Despite several requests for comment, neither Teneo nor LGT Capital Partners responded to our queries. However, the rapid growth and strategic acquisitions of Teneo suggest that the firm is confident in its ability to navigate the challenges of the industry and continue its growth trajectory.