Bain-Guidehouse M&A: $5.3 Billion Consulting Acquisition Includes Sustainability Services

Bain Capital Private Equity's plan to acquire Guidehouse for $5.3 billion extends far beyond traditional consulting and IT services. Indeed, Guidehouse also offers numerous sustainability services to help utilities and other types of customers with their carbon footprint reductions.

Guidehouse, based in McLean, Virginia, has 17,000 employees across roughly 55 locations worldwide. Veritas Capital has owned the business (previously known as PwC's US Public Sector Business) since 2018.

Guidehouse: Six Sustainability Services to Note

Guidehouse is perhaps best known for its management, technology and risk consulting. But dig a little deeper and you'll see the Guidehouse service catalog includes at least six sustainability services:

1. Beyond Net Zero: Here, Guidehouse offers "energy, greenhouse gas management, and nature-based solutions, including Guidehouse Papaya, for commercial and public sector clients across the globe."
2. Climate Risk: The company's climate risk solution "helps clients navigate and respond to the emerging risks and resilience challenges created by climate change."
3. Disaster Recovery: The company's long-term disaster recovery strategies help clientele to "build resilience in infrastructure, housing, and economic development."
4. Environmental, Social & Governance: The company helps clients to "navigate the complexity of this emerging topic to identify and meet their ESG objectives from strategy to execution."
5. Infrastructure Recovery & Resilience: The company works "alongside organizations to create sustainable, resilient infrastructure for real estate, communication, transportation, power systems, and more."
6. Mobility / EV: As the "shift to sustainable transportation intensifies, we provide data-driven, strategy-through-execution expertise across a wide range of public and commercial stakeholder organizations," Guidehouse asserts.

Key sustainability experts and leaders at Guidehouse include Chris O'Brien, Michelle T. Fay, Dan Hahn, Rick Rodman and Jan Vrins (all pictured below), according to the company's website.

Keeping Score on ESG: According to Guidehouse's 2022 ESG report, the company has "improved over 350 U.S. utility customer programs - helping over 50 million utility customers save energy and reduce the carbon footprints of their homes and businesses."

Still, the ESG report does not mention a net-zero carbon emissions deadline for Guidehouse's own business. Moreover, we don't know how much revenue Guidehouse's sustainability services generate.

Bain Capital Private Equity Acquires Guidehouse: Executive Perspectives

Under Bain's ownership, Guidehouse will continue to operate under its current management team, led by CEO Scott McIntyre.

In a prepared statement about the M&A deal, McIntyre said: "On behalf of the entire Guidehouse team, we're delighted to embark on the next phase of our growth in partnership with Bain Capital who shares our people-first culture, consulting heritage, and commitment to embracing complexity. Together, we see significant opportunities to capitalize on attractive marketplace dynamics to further grow the business with our best-in-class client delivery capabilities. We look forward to an impactful partnership with the Bain Capital team leveraging their resources and operational expertise as we work towards building our next generation consultancy with an unwavering commitment to creating the scalable, innovative solutions our clients need to succeed in this increasingly digital and complex environment."

Added Joe Robbins, a partner at Bain Capital: “Guidehouse has established a clear leadership position in its space using a differentiated model built on collaboration, expertise, and great execution. We are excited to partner with Scott and his proven management team to continue growing organically and inorganically in an industry with strong, long-term fundamental tailwinds.

Concluded Ramzi Musallam, CEO and managing partner at Veritas: “We are proud of our successful partnership with Guidehouse and the Company’s continued track record of growth, serving as a valuable partner to address the critical needs of its clients. Over the past five years, we have worked closely with Scott and his team to strategically position the Company by scaling its footprint, expertise, and capabilities in an effort to bring differentiated solutions to its customers across key end markets in the commercial and public sectors.”

Related M&A List: See all M&A deals involving sustainability, green IT services & renewable energy listed here.