Two expert consulting firms are joining forces following a strategic acquisition meant to bolster due diligence for technology sector offerings. Management consultancy giant Bain & Company has acquired Tech Economy, for an unrevealed sum. The partnership will bring Tech Economy’s proven aptitude with private equity association to Bain & Company’s considerable portfolio and long history in PE territory.
Tech Economy has made a name for itself in technology-based specialty consulting, handling buyer and seller due diligence for major players in the technology game. The firm’s clientele ranges from global and mid-market PE firms to their associated portfolio of off-shoot software and technology-empowered companies. Tech Economy is able to facilitate a comprehensive PE holding lifecycle. As a guiding hand for the entire scope of PE ownership, from pre-investment technology due diligence to vendor exit preparation, the firm will buttress Bain & Company’s existing capabilities.
Bain & Company’s supply of technical knowledge will surely broaden with the addition of Tech Economy’s Chief Executive Officer Robert Pierce as a new Expert Partner. Bain has also enlisted two senior technologists from the firm for executive positions. Serving as Vice Presidents, Bruce Miller will join the team in Boston and Dirk Bartels has been tapped for the Berlin branch.
Hugh MacArthur, Global Head of Private Equity Practice for Bain & Company, said “Technology due diligence is not just something that is limited to the technology sector, which has boomed over the past few years. 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.”
PE firms must match their enterprising prospect portfolio with an adaptable insight model that pits ambition against harsh reality. Tantalizing technology start-ups are popping up at a rate that might discourage the exhaustive due diligence that brings investors peace of mind. Thoroughly vetting all investment opportunities is imperative, taking into account the often rapid shifts in technology infrastructure and the facile missteps that occur from blind buying. Tech Economy’s sterling reputation with technology investors and buyers in North America and Europe will allow a greater flexibility for Bain’s future considerations.