SCD Advisory Founder Interviewed Twice on M&A Trends & PE Interest in IT Services & Consulting

1. May 2026 – Source Global Research

See link: The Australia Consulting Market in 2026 – Source

This article explores how Australian consulting clients are dealing with reduced confidence caused by economic turbulence while still moving ahead with plans to address their challenges. It looks at why transformation has become the top priority and how firms can position themselves to capture demand as the market begins to rebound. It also considers whether client sentiment is shifting, noting that despite recent trust issues in the consulting sector, the urgency of transformation is prompting many organisations to re‑engage with traditional firms, with 56 percent of clients saying they expect to increase their use of the Big Four in the next 12 months.

Contributing to this article, Pierre said:

“There are more buyers than sellers for high-performing companies, so valuations remain strong even if deals take longer to execute due to more rigorous due diligence. We are also seeing a shift in buyer power toward private equity firms, which are hyperactive in the people-based services space and are using the current market fragmentation to pursue roll-up strategies. In contrast, large global strategic buyers have become more risk-averse and are slower at making decisions.

While cash remains available, private equity firms are increasingly targeting professional services because they struggle to find other places to invest. They have been encouraged by successful large-scale deals overseas and a strong track record of local exits, such as the sales of Servian and Nexon. Private equity is better suited than strategic buyers for the current environment of disruption and fragmentation, as they excel at transforming companies and managing talent before selling to a strategic player later.”

“AI remains a major question mark and is causing significant disruption. For most consulting and IT firms, it currently represents more risk than opportunity, and few have a definitive strategy.”

2. February 2026 – MergerMarket

See link: Australia’s IT services sector presents “perfect elements” for PE investment

This article explores why Australia’s IT services sector has become a new hunting ground for private equity  investors, driven by growth potential, market fragmentation, people-based business models and profitability. It also examines recent sponsor backed transactions, the roll-up opportunity across managed service providers, SAP and Microsoft partners, data analytics and cybersecurity, as well as the target size thresholds that make businesses attractive to PE investors. The article also considers the difference between PE and strategic buyers, potential exit routes and whether artificial intelligence (AI) will be a growth opportunity, efficiency driver or source of disruption.

Contributing to this article, Pierre said:

“The surge of PE interest in IT services is largely thanks to four factors: the sector still has plenty of growth, is highly fragmented, while IT services companies are ‘people businesses’ and are profitable,” according to Pierre Briand, founder of Sydney-based SCD Advisory.

“These are perfect elements for PE,” he said. The fragmented sector means there is opportunity for PE backers to do roll-up, while PE also knows how to manage people incentives and successions, Briand elaborated.

Briand added that the sector’s profitability and regular revenue also allow PE sponsors to put some leverage.

Strategic buyers offer synergy opportunities but are “a bit risk-averse” now, while PE buyers are risk-takers and more agile, Briand said, adding that PE buyers know how to structure an IT services deal that usually includes earn-out arrangements.

PE buyers sometimes overpitch their industry knowledge in dealing with potential IT services targets, according to Briand, who usually works with privately owned businesses. “Instead they should pitch what value they can bring to the business, (such as) how they can renew the board, find good executives, reshape the business, support inorganic growth,” he said.

The usual playbook is to start with a platform asset and then plug in more capabilities through bolt-on acquisitions. However, it is not easy to find a good platform asset that ticks all the boxes: the right management, the right size, profitability and growth opportunities, said Briand, who has worked with both platform asset targets and roll-up asset targets.

In 2025, SCD Advisory advised DyFlex Solutions on its partnership with Five V Capital as a private‑equity platform investment, and advised Libertas on its sale to Liverpool Partners / Tambla as part of a roll‑up strategy.