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SCD advises Hypothesis on their sale to McKinsey & Company

Hypothesis Pty Ltd is a 45-person digital transformation and lean-agile consultancy based in Sydney.

McKinsey & Company is the global leader management consulting firm.

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Overview
Advisory & Preparation 18 months
Go-To-Market to Closing 6 months
Potential Buyers Approached 68
Advisors
Sell Side Lawyers Brown Wright Stein
Buy Side Lawyers Herbert Smith Freehills
Buy Side Financial Advisor Grant Thornton
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Deal Rationale

For the sellers, the deal allowed them to leverage existing relationships with large clients and replicate Hypothesis’ model on a larger scale while offering key staff professional growth opportunities in a competitive talent market.

McKinsey successfully launched their “Build by McKinsey” offering in Australia by acquiring Hypothesis.

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SCD Approach

SCD led a 2-year consulting engagement, providing monthly board support and preparing the business on specific M&A topics. Given the highly active market and increasing demand for digital transformation skills accelerated by COVID, SCD initiated a full sale process. SCD managed much of the preliminary bidder Q&A and prepared the management team for a large number of presentations to interested buyers.

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SCD Value Add

SCD’s strong local track record and high degree of credibility in the market were instrumental in generating 2 high-quality offers, one of which came from a global consulting leader.

SCD’s efficient execution of the sale, following a year of preparation, ensured a smooth process, particularly during the rigorous and lengthy due diligence required by the US-headquartered buyer. SCD successfully managed the workload, reducing the burden on the founders, and secured their transition as partners at McKinsey, where they launched the “Build by McKinsey” offering in Australia.

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