Solidiance and YCP merge to become an Asian consulting powerhouse

Two of Asia’s largest home grown consulting firms – Solidiance and YCP – have joined forces to create an Asia consulting powerhouse with over 250 consultants and staff and a presence across 20 different markets in the region. “Together, YCP and Solidiance aim to become Asia’s leading professional firm,” said the CEO’s of both consultancies, Damien Duhamel and Yuki Ishida.

Currently, the Asia Pacific region accounts for more than 17% of the globe’s management consulting industry, with a market size of $47 billion in 2017. China, Southeast Asia and Southern Asia are the main drivers behind the growing expenditure on management consultants. Recent research found that the fast growing management consulting scene in the Asia Pacific is likely to break through the $50 billion barrier by the end of this year. 

In this context, the consulting industry of the expansive region has become a key battle ground for consultancies looking to lead the growing market, and secure meteoric growth trajectories within its borders. One of the firms working hard to expand its footprint to that end is Solidiance.

Founded in 2006, by Damien Duhamel (the current CEO of the firm) and Heiko Bugs (COO), the firm is among Asia’s largest specialised management consulting firms, and has seen a steep growth trajectory since its inception. The company which originated as a two-man show more than a decade ago from bases in Singapore and China has grown significantly. Solidiance differentiates itself through its dedicated focus on the Middle East and in particular the Asia region, with offices spanning from Lebanon’s capital Beirut (launched early 2016) to its hubs in the Philippines (based in Manila; opened in 2013) and in Sydney (office opened this summer).

On top of this, recent acquisitions saw Solidiance’s presence grow not just across Asia, but the rest of the world too. In late 2017, the Asian origin consulting firm entered the US consulting market with the opening of a new office in San Diego – as the firm bids to make the most of US companies looking to expand into Asia’s growing economies. This was in line with the firm’s broader strategy when it comes to Western expansion, as it also has a hub in Germany dedicated to assisting businesses looking to extend their operations into Asia.

Merger of equals

Now, as Solidiance looks to further enhance its position as a gate-keeper of the Asian market, it has announced a merger of equals with YCP, a regional professional firm providing advisory services and private equity investments headquartered in Hong Kong. YCP was founded in Japan in 2011 with a view to providing multifaceted advisory services, primarily to clients in the private equity industry.

"This strategic decision will combine YCP’s strong capabilities in equity investments and advisory services with our consulting work – with the main goal to lead Asia’s management consulting industry."
_{– Damien Duhamel, CEO of Solidiance}

YCP expanded rapidly into other Asian markets in Southeast Asia and China. They also engage in private equity investments in these markets, with key investment portfolios such as Alobaby (a leading Japanese organic skincare brand) and Teppei Syokudo (a leading Japanese F&B brand in Singapore). Japan is known as Asia’s largest consulting market, while China, India and Australia are the key growth drivers in terms of volume. As these are all markets where both YCP and Solidiance are fully present to support the clients, the merger is seen as a complementary fit, which will help both parties to secure a leading role in the market, going forward. The joined entities will serve new and existing clients across automotive, manufacturing, construction, healthcare, F&B, e-commerce, hospitality, technology and agriculture sectors.

Commenting on the deal, Yuki Ishida, Group CEO of YCP stated; "Teaming up with Solidiance will give us the opportunity to broaden our client base and service offerings in new Asian markets. Through larger geographical coverage and deeper expertise in key vertical industries, we can further assist our clients and deliver high-value impact to their businesses. We also gain new principal investment opportunities in key markets which we previously did not cover, while at the same time opening new doors for our portfolio companies.”

Damien Duhamel, CEO, Managing Partner and Co-founder of Solidiance, added, “This strategic decision will combine YCP’s strong capabilities in equity investments and advisory services with our unmatched consulting work – with the main goal to lead Asia’s management consulting industry. Together, we strive to help our clients achieve transformational growth and success in Asia by providing reliable, actionable analysis, unconventional methods and deep hands-on implementation guidance.”

Related: Solidiance continues expansion abroad while its NextContinent alliance grows.