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INTERIM MANAGEMENT CONTINUES TO GROW IN PRIVATE SECTOR

INTERIM MANAGEMENT CONTINUES TO GROW IN PRIVATE SECTOR

•        The private sector accounts for more than two thirds of all interim management assignments – a level not seen since 2007

•        Banking and finance continue to dominate the IMA business

•        Jason Atkinson, IMA chairman, offers his predictions for the sector in 2013

The latest Ipsos MORI survey (1) from the Interim Management Association(IMA) has highlighted that the private sector accounts for more than two thirds (67 per cent) of all interim management assignments – a level not seen since 2007.

The IMA is the industry body representing the leading UK companies that recruit interim managers. In its latest survey, it has also been revealed that the average number of assignments in progress per member continued the upward trend started a year ago, in Q4, 2011. The average this quarter is 62 assignments in progress per member (up from 58 in Q2, and 54 in Q1).

However, on a less positive note, the overall number of new assignments started in this quarter has dropped by 13 per cent to 324 (from 374 in Q2).

And, interestingly, when it came to the number of enquiries for interims received by each member – the average decreased for the private sector to  60 per cent from 65 per cent in Q2. And enquiries in the public sector increased from 70 to 76 per cent.

The banking and finance sector continues to dominate the IMA private sector activity (representing nearly half (46 per cent) of all private sector assignments).

Jason Atkinson, chairman of the IMA, commented: “With the slowdown in growth in Q3, coupled with the economic uncertainty, it is tough out there. Like the Chinese economy, the sector is still growing, but the growth has slowed.

“The industry is going through a lot of change, and clearly interim managers are more sought after than ever in the private sector.

“I wasn’t surprised to read that – overall – there was a real slowdown in the number of assignments for Q3, 2012. This was the time of the Olympics, when people took holidays and were forced to work shorter days. I would expect these figures to increase for Q4, 2012.”

Offering his predictions for the interim management sector in 2013, Jason Atkinson added:

•        It will be another tough year. We will still see growth, but it will be the flattest we have seen.

•        Interim management will make big strides into the SME space, supporting young businesses in their growth plans. While a talent shortage exists, there will always be demand for interims.

•        The banking and finance sector will continue to see yet further growth, and will still dominate the space. This sector continues to see activity through mergers, acquisitions and start-ups entering the industry – all the while this goes on, there will be a demand for interims.

Atkinson continues: “2012 represents the IMA’s 25th anniversary year – a year we launched our IMA Approved campaign – representing the next vital step in the interim management sector. We can only wait to see what 2013 will bring.”

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