Second time lucky as Mouchel Parkman buys Hornagold & Hills

Listed consultant Mouchel Parkman made an offer for project manager Hornagold & Hills two years before it agreed a deal with the firm in early November.

Stan Hornagold, founder of Hornagold & Hills, confirmed the previous approach for the 170-strong firm in 2004, but said that he felt it was “not the right time for both businesses”. However, he explained: “We have both matured a lot as businesses since then.” Hornagold said the firm had received an offer from a buyer “once a year for the last 15 years”. Mouchel Parkman came in with its second offer in mid-September. “It’s been very fast indeed,” said Hornagold.

Hornagold commented that the cash buy, which valued his firm at £11.4m, and was due for completion by the start of December, made sense for both companies. “They are obviously looking to be a very diverse business, but they also have significant experience in management consultancy. Together with us, we have a much better chance of competing.

“Clients are looking for larger groups to provide them with services. We were growing organically as a business, but there are limits as to how far you can go.”

If anything happens on the Thames Gateway, there
is a big need for consolidated advice. Our company will offer a lot of resources

Stan Hornagold, founder of Hornagold & Hills

The acquisition will see Hornagold stay on as an adviser and fellow founder David Hills take over as head of the company’s management consultancy division. Hornagold said that he would concentrate on his work on the Thames Gateway in his new role. The firm produced a report on the best way to manage the Thames Gateway programme at the start of the year.

“I have built up a lot of knowledge on that in the last two years. There is so much to do for the Thames Gateway. “If anything happens, there is a big need for consolidated advice. Our company will be able to offer a lot of resources for that.”

Hornagold first started the firm in 1987, before bringing David Hills on board in 1989. Hornagold & Hills worked on the London Underground PPP deal, and its current commissions include a £100m programme management job for the Royal Shakespeare Company to transform their theatres at Stratford-upon-Avon. The firm’s client list includes British Airways, BAA, the BBC, Pfizer and Transport for London. In the year to 31 October 2005, Hornagold & Hills posted pre-tax profits of £0.7m on a turnover of £13.08m.