West Monroe Partners Acquires Waterstone Management Group

West Monroe Partners announced the acquisition of Waterstone Management Group, an advisory firm for private equity firms and Fortune 500 companies.

The acquisition expands West Monroe’s strategic advisory and operations improvement services to clients who leverage software-enabled technology to provide value and a compelling experience to their customers, says Matt Sondag, Managing Director and National Leader for West Monroe’s Mergers & Acquisitions practice.

The acquisition expands West Monroe’s national M&A team by about 15 percent, with about half the acquired employees joining the firm’s headquarters in Chicago and the other half joining the San Francisco office, increasing the firm’s employee count by nearly 40 percent in the Bay Area.  

“West Monroe continuously evaluates opportunities to serve our clients better and this stood out as an outstanding fit in terms of culture, leadership, and market capabilities,” Sondag says. “It immediately adds new service capabilities in growth strategy and operations improvement, as well as deepens our expertise in the software space, which currently represents one-third of our transaction volume.” 

Waterstone, founded in 2003, has served boards and management teams of more than 100 leading technology companies. Combined with West Monroe, the firm’s M&A practice will be able to provide a full array of commercial, technology, and operations diligence as well as post-close implementation services.

Both firms have experience in successfully serving and delivering results for mid-sized and large-scale investments.

West Monroe’s acquisition of Waterstone comes at a time of heightened activity in the U.S. private investment market, where robust fundraising, strong exit markets, and attractive returns have spurred M&A activity.

“Now more than ever, private equity firms and corporate investors are seeking partners who bring deep industry expertise along with a wide breadth of services to realize their investment thesis,” Sondag said. “West Monroe has both expanded its capabilities and deepened its expertise with this acquisition.”