Activist investor Starboard sent another blistering letter to Yahoo lambasting … – Business Insider

REUTERS/Denis BalibouseYahoo CEO Marissa Mayer.

Starboard, the activist hedge fund that is a Yahoo shareholder, has delivered yet another letter to the digital media company’s board of directors, calling for “significant changes” (read the letter in full below).

Starboard — which owned 0.75% of Yahoo as of September 30 and is the company’s 23rd-largest shareholder — says it believes Yahoo shareholders have lost confidence in the ability of current management.

Starboard also thinks Yahoo’s recently announced plan to spin off its struggling internet businesses into a new company — the reverse of its initial plan to spin off its $20 billion stake in the Chinese e-commerce company Alibaba — will simply mean shareholders will have to wait another year “while the existing leadership continues to destroy value.” Bear in mind, it was Starboard that urged Yahoo to halt its plan to sell its 15% stake in Alibaba in the first place because of the risk of incurring taxes on the sale.

In summary, Starboard says “it is time for the board to accept that significant changes are needed” to Yahoo’s management, board composition, strategy, and execution.

Business Insider has contacted Yahoo for comment.

Reuters reported on Tuesday that the pressure on Yahoo to sell its core business was mounting. Several Yahoo investors with “significant stakes” are concerned Yahoo’s core business could start rapidly losing value, so they want it sold off immediately, according to Reuters.

Here is the full letter from Starboard to Yahoo’s board of directors:

January 6, 2016

Board of Directors of Yahoo! Inc.
701 First Avenue
Sunnyvale, California 94089

cc: Maynard J. Webb, Chairman
Marissa Mayer, Chief Executive Officer
Larry Sonsini, Esq., Legal Counsel

Dear Board Members,

The past year has been an extremely frustrating one for shareholders of Yahoo! Inc. (“Yahoo” or the “Company”). We are sure that you, the Board of Directors (the “Board”), must also be frustrated. Despite reasonable intentions, in the end, the proposed spin-off of Yahoo’s stake in Alibaba Group Holding Limited (“Alibaba”) into Aabaco Holdings, Inc. (“Aabaco”) turned out to be a failed effort due to a changing tax landscape and serious concerns over the potential for massive tax liability. We believe you ultimately made the right decision by suspending the spin-off of Aabaco. Also frustrating for us, and likely for you, has been the continued downward spiral of the operating and financial performance of Yahoo’s core Search and Display advertising businesses (the “Core Business”). Despite over three years of effort and billions spent on acquisitions, the management team that was hired to turn around the Core Business has failed to produce acceptable results, in turn, causing massive declines in profitability and cash flow.

It appears that investors have lost all confidence in management and the Board. As of Tuesday’s close, the value of the “Yahoo Stub” (defined as Yahoo’s market value less the value of its shares in Alibaba) has collapsed and is currently trading near zero. The bulk of Yahoo’s current market value almost entirely derives from an extraordinary investment Yahoo made over ten years ago in Alibaba, and the good fortune that Alibaba’s management team has executed well such that this investment today is worth over $30 billion. This compares to Yahoo’s current market capitalization of approximately $30.5 billion.

The current valuation of Yahoo implies either a massive tax liability on Yahoo’s minority equity interests in Alibaba and Yahoo Japan Corporation (“Yahoo Japan”) or that the remaining operating assets of Yahoo are worthless, or some combination of the two. While we agree that the failed separation has been frustrating, we are confident that a separation of these assets can be accomplished through either a sale of the Core Business or a spin of the Core Business. Either of these outcomes would result in a much more tax efficient separation than the market currently implies. Unfortunately, it appears that shareholders have no confidence that management and the Board will be able to execute on a separation of these assets or improve the performance of the Core Business. We are confident that both of these objectives are achievable, but will require a change in leadership and strategy.

Yahoo’s current management has had over three years to demonstrate progress towards improving the Core Business, but despite these efforts, the Core Business continues to be plagued with deteriorating financial performance and an accelerating number of executive leadership departures. Annual operating costs have ballooned, increasing by approximately $500 million despite revenue that has been declining. In addition, the Company has spent over $2.3 billion on acquisitions. Unfortunately, most of these investments have been misguided, poorly overseen, and, ultimately, shut down. Even with these massive investments, the trajectory is decidedly negative. As shown in the table below, EBITDA continues to decline quarter-after-quarter while spending continues at an alarming pace.

Starboard Value LP

If nothing else, the results of the past three years, which follow several other failed attempts to turnaround the business theretofore, should demonstrate to you that turning around this business is extremely difficult. To be successful, dramatically different thinking is required, together with significant changes across all aspects of the business starting at the board level, and including executive leadership. New leadership will have to develop and implement a plan to balance priorities between growth and profitability. This will mean prioritizing and investing in certain parts of the business while at the same time deeply reducing unnecessary costs, selling or exiting many unprofitable businesses and research projects, and overhauling the incentives and compensation programs to instill sound business behavior.

Over the past 13 years, we have been involved in similar turnaround efforts with many of our portfolio companies. Certainly on paper, there could be a viable plan to significantly restructure Yahoo, shift direction under new leadership and attempt, once again, to reverse the current trends of declining revenues, increasing costs, and plummeting profits. We, and you, understand that businesses are not operated on paper and that leadership skill and experience is required for complex turnarounds as well as day-to-day management. We understand that executing such a significant restructuring at an extremely high profile public company while reporting quarterly results is challenging. That is why it is necessary for the Board to remain open-minded regarding the future of Yahoo. The Board must be able to assess and compare a stand-alone spin-off and restructuring of the Core Business, as described above, versus the value that could be received today through a competitive sale process resulting in a sale of the Core Business to a strategic or financial buyer.

We are highly confident that there are interested and credible buyers for Yahoo’s Core Business. It is our understanding that even after Yahoo announced its plan to spin-off, instead of sell, the Core Business, several interested parties subsequently reached out to Yahoo’s management and Board expressing interest in buying the Core Business. Yet, unfortunately, according to several credible media reports, Yahoo has thus far ignored this inbound interest. This is highly concerning to us because when recently asked specifically on CNBC, Maynard Webb, Yahoo’s Chairman, stated that if Yahoo received inbound interest from potential strategic or financial buyers the Board would engage with those parties:

“The Board has fiduciary obligation to engage with any legitimate person that comes forward with a good offer. The Board will always do its fiduciary obligations when something like that occurs.” – Maynard Webb, December 9, 2015

This is unacceptable. By making the above statement, while simultaneously ignoring serious interest, you are sending potentially destructive mixed messages. In order to ensure the best possible outcome for shareholders, it is imperative that you clearly communicate your receptiveness to discussions with parties who demonstrate an interest in an acquisition of the Core Business. Those parties can then confidently commit the time needed to make a bid. Only in this way can you truly compare the potential value received in a sale of the Core Business versus a substantial stand-alone restructuring of the Core Business.

For over a year, we have attempted to work constructively with management and the Board of Yahoo. We have tried extremely hard to work “behind the scenes.” We have grown increasingly frustrated. It took significant effort for us to convince you it was the right choice to suspend the Aabaco spin-off. Unfortunately, instead of heeding our advice and concurrently announcing that you would explore a sale of the Core Business, you have now hid behind a plan to spin-off the Core Business and Yahoo Japan without fully understanding the alternative options. We have had numerous conversations with you for over a year where we expressed our extreme concern with the trajectory of the Core Business. We told you that, aside from separating the minority equity interests, the performance and lack of turnaround execution on the Core Business was our primary concern and focus. You assured us for over a year that you had a plan for execution and that you were confident that 2014 would be a low point for EBITDA. We explained over and over again that we did not believe your actions, or lack thereof, would achieve the desired result of stabilizing the business. Unfortunately, it appears we have been right, and each quarter is worse than the last. Your solution to just announce a change in direction of the spin and that it will require another year for shareholders to wait while the existing leadership continues to destroy value is not acceptable.

The Board must accept that significant changes are desperately needed. This would include changes in management, changes in Board composition, and changes in strategy and execution. If the Board is willing to embrace the need for significant change and pursue a strategy along the lines of what we have proposed above, we are hopeful we can work constructively together and make changes to the Board through a mutually agreeable resolution. This is clearly the preferable route. If the Board is unwilling to accept the need for significant change, then an election contest may very well be needed so that shareholders can replace a majority of the Board with directors who will represent their best interests and approach the situation with an open mind and a fresh perspective. The new Board can then assess the state of the existing business, including a review of management’s strengths and weaknesses, so that the Board can best represent shareholders in analyzing a viable turnaround plan compared with potential offers for the Core Business. We look forward to our continued discussions.

Respectfully,

Jeffrey C. Smith
Managing Member
Starboard Value LP

SEE ALSO: The pressure on Yahoo to sell its core internet business is increasing

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How to Keep Your Business Together When Your Marriage Is Coming Apart – Entrepreneur

Divorce is emotionally and financially stressful for all couples, but when one spouse owns a business that has supported the family, structuring a settlement can become complicated. With careful negotiations and planning, you can hold onto that business.

“Basically, you really want to try to maintain the value of the business and the value to the marital estate,” says Marc Effron, certified public accountant and managing partner at White Elm Group, LLC in Atlanta, Georgia. “The best way to do this is to make every effort to keep the business in place through the divorce process.”

A future perspective is important, as is protecting the business’s income stream, especially when alimony and child support are involved. Both spouses also need to be willing to compromise. “There’s a certain amount of cooperation and mutuality of interest when there’s a business involved,” says Gemma Allen, partner at Ladden & Allen in Chicago. “It’s in everyone’s best interest to make an economically viable deal.”

The divorce process can be very distracting too, and staying focused will help the business stay on track.

“Sometimes, a quick resolution will allow the business to succeed and extended litigation may kill the golden goose,” says Randy Kessler, founding partner of Kessler & Solomiany in Atlanta. “If you stretch it out, some business owners may just give the business up or close down the business because they’re frustrated — that’s the danger.”

Here are steps to consider so that your business remains intact post divorce.

Determine the marital estate.

“The business owner needs to address whether the business is a marital asset,” says Sherry Ziesenheim, certified public accountant and Valuation and Forensics Analyst at Schaffner, Knight, Minnaugh & Company, P.C. in Erie, PA.

Whether the business was acquired or established during the marriage determines if it’s a marital asset. If the business isn’t a marital asset, the other spouse still needs to be reasonably compensated for their efforts during the marriage

Sometimes, when a business relies on a person’s skill set, like a contractor or a medical, dental or law practice, the person’s income is worth more than the business. “Does it make sense to look at it as an asset on the books or as a job?” says Sherry.

Also know what assets you have in addition to the business, such as investments and real estate — these are integral to negotiating a settlement.

Related: How to Divorce-Proof Your Company

Opt for mediation.

If a couple goes to court, the judge will decide. “Courts will probably not be as creative or detailed as you can be in a settlement or arbitration,” says Kessler.

Mediation can give you more control over the outcome, and the process is less expensive. “A mediator is a facilitator,” says Allen. “They try to facilitate the party’s own agreement.”

While you may need multiple valuations in court depending on the jurisdiction, in mediation, the two parties can agree on one expert to provide a valuation. Valuations can be expensive and time consuming. Consider how much is at stake. “If you’ve got a big business worth $100 million, you’d want your own expert at least advising you related to the valuation being done,” says Jerome Johnson, certified public accountant in Albuquerque, New Mexico.

Value the business.

“People are rightfully concerned about [the valuation] because you’re not selling the business, but someone is valuing it as if you are going to sell it,” says Allen. “There could be a wide discrepancy on what it’s valued at versus what it can be sold for.”

Hiring an expert who understands the business and can measure the value at the proper standard for divorce purposes is key. Each state law mandates a value that’s different than what the owner would get if they sold the business in the open market. But, an inaccurate valuation may temper your business’s long-term ability to operate at a profit.

“When you’re going through a divorce and dividing up the property, you need to have a realistic understanding of how much that business is worth,” says Michael Kaplan, certified public accountant in Woodland Hills, CA. “The sooner in the process the business owner understands this reality, the sooner they can sit down with their attorneys and professionals and structure a way to divide the marital estate.”

Related: 6 Guidelines for Helping Your Business Survive a Divorce

Structure a buy out.

There are different ways to buy the other spouse out that allow you to continue to operate the business.

Consider an installment plan with payments based on revenue or a set amount that’s paid over time, plus interest, with an acceleration clause if the business sells. There are different ways to structure these payments so that the company is able to hold onto working capital assets to achieve growth and income forecasts. “Have security in place like life insurance that would cover the payments in case something happened to that spouse or in case of default,” says Brian Blitz, principal at Berger Schatz in Chicago.

A lump sum to the other spouse can help the business owner maintain full ownership and control after the divorce, but these aren’t always a 50/50 split. “Sometimes the [other] spouse is willing to say you don’t have enough cash, but I would feel more comfortable if we’re not intertwined and will take what you have because I want this to be done,” says Effron.

If you don’t have the cash for a lump sum payout, your marital estate may have significant assets that can be used to equalize the value of the business.

When the plan is to sell the business in the near future, you can structure a sale-based payout such that the other spouse only receives a percentage of the sale proceeds while forgoing any other payments.

Don’t change business practices.

Altering how you do business generally backfires, like running expenses thought the business or drawing a lower salary. “Just conduct your business as you always had for the most part and if you’re not sure because you want to alter a practice, just ask,” says Blitz.

Don’t work together.

“It’s rare that a couple can work together after a divorce because there will be tension and employees can feel it,” says Kessler. If you ran your business with your spouse, the other spouse may want to pursue another profession after the divorce.

One way to avoid partnership disputes is by holding the other spouse’s interest in a constructive trust. This way, the owner has all the control and fiduciary responsibilities to manage the business and maximize its value.

Related: 5 Essential Tips for Financial Planning After Divorce

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November Trade Deficit Narrows to $42.37B – Fox Business

 (Reuters)

The U.S. trade deficit narrowed in November likely as efforts by businesses to reduce an inventory overhang pushed imports of goods to their lowest level in nearly five years, outpacing a drop in exports.

The Commerce Department said on Wednesday the trade gap fell 5.0 percent to $42.4 billion. October’s trade deficit was revised up to $44.6 billion from the previously reported $43.9 billion.

Despite the shrinking trade deficit, declining exports are the latest indication that economic growth braked sharply in the fourth quarter. While inventories likely accounted for much of the drop in imports, the weakness could also be pointing to a slowdown in domestic demand, which was flagged by weak December automobile sales.

Economists polled by Reuters had forecast the trade gap widening to $44.0 billion in November. When adjusted for inflation, the deficit fell to $59.60 billion from $61.03 billion in October.

Trade, which subtracted 0.26 percentage point from gross domestic product in the third quarter, is likely to have remained a drag on growth in the fourth quarter.

A strong dollar and the inventory bloat, which has left businesses with little appetite to order more merchandise, have combined with spending cuts in the energy sector to take some steam out of the economy in recent months.

Economists this week slashed their fourth-quarter GDP growth estimates by as much as one percentage point to as low as a 0.5 percent annual pace, which also accounted for unseasonably warm weather that has impacted on sales of winter apparel and other merchandise.

The economy grew at a 2 percent annual rate in the third quarter.

Businesses accumulated a record pile of inventory in the first half of 2015, which was unmatched by demand, leaving warehouses bulging with unsold goods.

Imports of goods dropped 2.0 percent to $183.5 billion in November, the lowest level since February 2011. Imports of industrial supplies and materials were the weakest since May 2009. There were also declines in imports of capital and consumer goods. Auto imports, however, rose.

Lower oil prices as well as increased domestic energy production also helped to curb the import bill. The price of petroleum averaged $39.24 per barrel in November. That was the lowest level since February 2009 and down from $40.12 in October and $82.92 in November 2014.

The dollar gained almost 10 percent against the currencies of the United States’ main trading partners last year, eroding the appeal of U.S.-made goods overseas. Lackluster global demand also has put a damper on exports.

Goods exports slipped 1.1 percent to $122.2 billion in November, the lowest since June 2011.

Exports of industrial supplies and materials hit their lowest level in five years, while petroleum exports were the weakest since December 2010. Exports of non-petroleum products dropped to their lowest level since June 2011.

The decline in exports to the United States’ main trading partners was nearly broad-based in November. But the politically sensitive U.S.-China trade deficit fell 5.2 percent to $31.3 billion in November.

(Reporting by Lucia Mutikani; Editing by Paul Simao)

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LW Consulting Promotes Vice President – PR Newswire (press release)

HARRISBURG, Pa., Jan. 5, 2016 /PRNewswire/ — LW Consulting, Inc., has announced a pair of changes that will affect the way it organizes its services.

• LW Consulting’s Senior Living Division is now known as Post Acute Services. The new name is more aligned with payment reform dynamics and better reflects the services that LWCI already provides.
• Rodney Farley, formerly Director of Senior Living for the organization, has been promoted to Vice President of Post Acute Services.

Post Acute Services continues to meet the same standard of quality that LWCI clients depend upon. Services include compliance auditing, reimbursement, and operations consulting with other support options available.

Farley has been with LWCI for 25 years, joining it as his first professional job after graduating Pennsylvania State University and undergoing an accounting internship. His commitment to the company stems from a devotion to the vision and mission of the firm. As Vice President, he oversees various services designed to meet the needs of providers in the post acute continuum.

“The Post Acute Services name represents a more innovative, redesigned approach to providing consulting services in the senior living environment. With the growth of our firm and the depth and breadth of experiences of our team, we are better able to anticipate and provide solutions for the changing needs of our clients in the integrated care delivery system. We are not changing anything here but the name,” Farley said.

About LW Consulting, Inc.:

LW Consulting, Inc. (LWCI) is headquartered in Pennsylvania, with additional offices in Maine, Georgia and South Carolina. LWCI services are available nationwide thanks to our extensive network of consultants and strategic partners. LWCI provides a full range of healthcare consulting solutions. Our services are available to the full continuum of healthcare providers, including hospitals, health systems, LTACs, physician practice group, rehabilitation providers, nursing facilities, home health, senior living providers, behavioral health providers, outpatient and community based providers. We work on behalf of providers and often collaborate with their attorneys. We are experienced in working with State Agencies, Medicare Contractors, the Office of Inspector General and US Attorneys.

LWCI consultants possess an in-depth understanding of the regulations and issues that impact compliance, performance and organizational success. Our team includes accountants, physicians, nurses, therapists, healthcare administrators, environmental consultants, information technology consultants, data analysts, statisticians, billers, coders, and reimbursement consultants. Our team members are certified in a variety of areas, including coding specialties, ICD-10, RAC-CT, healthcare compliance and project management. We collaborate with national associations, such as AHCA, AHLA, LeadingAge, MGMA, AHIMA, AAPC, HCCA, HIMSS, AMRPA, and AANAC.

Our mission is to make lives better with worthwhile work. We do this by applying our values to every project for every client. Our values are Experience, Leadership, Integrity, Adaptability, Commitment, Innovation, Excellence, and Teamwork.

Visit the following links for more information:

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Contact:
Rodney Farley, Vice President, Post Acute Services
RFarley@LW-Consult.com
717-213-3123

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SOURCE LW Consulting, Inc.

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Envision Business Consulting® Adds Chief Financial Officer and Change … – PR Newswire (press release)

DENVER, Jan. 5, 2016 /PRNewswire/ — Envision Business Consulting, one of the fastest growing business consulting firms in Denver, today announces the addition of Colleen Kasch (pronounced “Cash”) as its first official Chief Financial Officer (CFO).  Kasch is responsible for streamlining and automating financial processes to improve the company’s overall financial reporting.

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Kasch, a CPA, has worked with many mid-sized construction, development, service, architectural, venture capital, and other companies as CFO, Controller, and/or Consultant. She has a Bachelor’s in Business Administration from San Diego State University.

“I’m delighted to join the team of professionals at Envision Business Consulting. I look forward to working closely with Envision’s owners, clients and professionals to examine ways to enhance Envision’s financial processes, including creating a streamlined tracking process and improved reporting systems, all which will support the organization’s rapid growth,” says Kasch. 

Envision also announces the addition of a new senior consultant, Holly Piturro. Piturro will work in Envision’s Change Management and Learning Development practice. Prior to joining Envision, Piturro worked at Leprino Foods Company, where she was most recently the Manager of Talent and Organizational Change. Prior, Piturro worked at Titanium Metals Corporation as the Learning and Development Manager for North America. Piturro has a Bachelor’s in International Business from the University of Colorado and is certified in Prosci® Change Management, Cornell’s Change Leadership approach, and as a Human Capital Strategist through Human Capital International.

Principal and co-founder of Envision Business Consulting, Rob Novick, says, “Colleen and Holly will enhance the credibility of our growing Denver business consulting firm. Colleen brings a degree of financial sophistication that our world-class organization requires while Holly makes our Human Capital team complete with her vast capabilities and expertise in the change management and learning fields.”

Envision is dedicated to delivering high-level, customized business solutions to commercial, government and non-profit organizations. Envision Business Consulting’s wide breadth of consulting services include Organizational and Change Management, Human Capital Management, Business Technology Enablement, Strategy and Operations, and Social and Collaboration Services.

About Envision Business Consulting®
Envision Business Consulting, founded in 2009, is a business consulting firm that transforms, grows and enriches people and organizations. Through a unique ecosystem for four inter-connected activities – business consulting, talent search, private equity and philanthropy – Envision works with clients, employees and communities to enact positive change. Based in Denver, Colorado with offices in the Midwest (Chicago–Milwaukee) and New York City, Envision Business Consulting is a rapidly growing consulting firm. In 2013 and 2014, Inc. Magazine named Envision as one of the fastest growing companies in America. In 2014, Envision Business Consulting was named one of 50 Colorado Companies to Watch by ColoradoBiz magazine. Visit www.envision-bc.com.

CONTACT:     
Jenny Finke
Red Jeweled Media
303-815-4403
Email

SOURCE Envision Business Consulting

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Jul 28, 2015, 08:45 ET

Preview: enVision Business Consulting® Opens New York Office to Meet High Demand in Northeast

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Ex-McKinsey Consulting Partner Charged with Fraud Against State Farm – Insurance Journal

A former partner at consulting firm McKinsey & Co has been arrested on charges that he engaged in a scheme to submit fraudulent invoices and expenses to the company and clients, including State Farm, for more than $890,000.

Navdeep Arora, who had been a senior partner in McKinsey’s Chicago office, was arrested on Sunday by the Federal Bureau of Investigation after arriving in New York following a flight from London, according to court papers.

He was named in an indictment filed in federal court in Chicago along with a former internal State Farm consultant, Matthew Sorensen, who the indictment said participated in the scheme.

His arrest was detailed in papers filed on Monday in federal court in Brooklyn, New York, ahead of a hearing later in the day for Arora, 51, who joined KPMG in 2014 after leaving McKinsey and lived in London.

A spokesman for U.S. Attorney Zachary Fardon in Chicago confirmed Arora’s arrest. A court-appointed lawyer for Arora had no immediate comment.

It was unclear if Sorensen, of Bloomington, Illinois, was also arrested. Sorensen, 44, did not respond to requests for comment.

The indictment said Arora oversaw services that McKinsey provided State Farm, while Sorensen assisted State Farm in determining whether to hire outside consultants.

The indictment said that beginning in 2004, Arora fraudulently charged McKinsey and State Farm for expenses in order to reward Sorensen and an unnamed co-schemer for helping McKinsey get State Farm consulting work.

Fraudulent invoices to McKinsey, State Farm and another McKinsey client for unperformed work resulted in $490,975 in fees being paid, the bulk of which Sorensen retained, the indictment said.

Arora also submitted fraudulent expenses to McKinsey, State Farm and other clients for domestic and international trips for himself, Sorensen and others to cities including Miami, Las Vegas, New York, Prague and London, the indictment said.

In total, Arora obtained $400,000 in fraudulent expenses, which also covered personal hotel, meal and theater tickets in Chicago that he claimed were business expenses, the indictment said.

McKinsey spokeswoman Rachel Grant said the firm discovered the situation in 2011, notified the client, “terminated the employee involved” and cooperated with authorities.

State Farm spokesman Phil Supple said the insurer also cooperated with investigators. He said State Farm had not employed Sorensen in more than three years and had not had a contractual relationship with McKinsey since April 2012.

The case is U.S. v. Arora, U.S. District Court, Northern District of Illinois, No. 15-cr-486.

(Reporting by Nate Raymond in New York; Editing by Bill Trott and Leslie Adler)

Copyright 2016 Reuters. Click for restrictions.

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How to master the application process for consulting jobs – eFinancialCareers

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Stand out from 100 applications for a consulting job

Everyone talks about how competitive it is to get into investment banking, but consulting is just as tough. As someone who recently started at a Big Three strategy consulting firm, and who now screens graduate applications, I can tell you it’s getting fiercer. The likes of Mckinsey and Bain received up to 100 applications for every role this year.

Getting into consulting is not all about innate talent,  you need a strategy to your application. These are my tips for getting in…

1. Apply to a lot of firms

The first stage of the selection process will be some form of problem-solving test. Firms use this to filter from roughly 100 to 50 candidates for available role. These tests are not intended to assess your ability in ‘maths’, they try to test the way in which you think through problems.

Natural problem-solving ability is important. But the questions often repeat – if not in content they do in style. It is possible to learn how to solve the questions well or more quickly. Making sure you get plenty of practice is therefore critical. To get ahead of your rivals, apply to lots of firms across professional and financial services. Most firms will pass you automatically to the testing stage giving you fantastic, real practice.

2. Have a ‘top’ university on your CV

Academic standards will be used to chop 50 candidates for every role to around 25. Missing minimum grade requirements (normally an A in GCSE Maths and English and a predicted or realised 2.1 degree or above) causes an immediate rejection.

Less obviously, going to the wrong university can get you shown the door immediately too. Consultancies receive so many applications that they lack the resources to screen each one of them manually. They can also be very picky.

If you do not go to one of the top universities in your country (i.e. a ‘top 10’ university in the UK, or an Ivy League college in the U.S.), then your application will not even be considered. Don’t give up if you’re not in the right place now though – your chances could be increased hugely by pursuing postgraduate education at a better-regarded university. Then, you’d have both a more impressive level of education and a better university on your application. Alternatively, focus on building your experience.

3. Get work experience, but not too much

Manual CV and cover letter screening cuts the number of candidates from around 25 towards 10 for every role. At this stage, candidates will have the minimum academics and have passed the problem solving test. CVs are therefore graded for two things: exemplary academics and/or the right sort of experience.

PhD, university level awards or first-class degrees are the best ways to get bonus points for academic achievements.

Having at least two months’ work experience at a blue-chip firm is a strong support to an entry level application too. Well-regarded internship programmes – within or outside of consulting – are therefore well worth doing. Spending a summer in an investment bank and then applying to a consultant is almost as good as experience in consulting.

On the other hand, if you have loads of experience, you are unlikely to be considered for a role above entry-level.

The most efficient route into consulting is to apply straight after university having done one summer internship. More experience does not equal an increased chance of success.

Other experiences outside of work will also be considered. It is well worth including part-time jobs you may have held during your studies, for instance, as these will be taken as a positive demonstration of initiative. Extra-curricular leadership roles could even be treated as equivalents to internships or jobs. Your role in a society at university could well be the difference between getting an interview and being rejected.

4. Use a repeatable formula to write cover letters

Cover letters are used to confirm your interest in consulting and for the specific firm that you are applying to. Not much else.

It is therefore worth being ruthless and formulaic with how you write them. Writing something around one side of A4 is important – it shows effort, and most other candidates will do the same.

Pointing towards your key skills or achievements is also useful in making sure an assessor gets the right points out of your CV. But the key thing you must do is to write something specific and relevant about the firm you are applying to. Mentioning your attendance at a recruiting event (and a person you met there) is ideal. Using buzzwords to describe the firm (perhaps lifted from their recruiting website) and linking them to your experiences and interests is a fantastic thing to do. It sounds simple, but most candidates miss easy points here. Do not be afraid to use bullet points or bolding to draw attention to your key selling points or your specific reasons for applying to that firm.

Applying with an average test score and cover letter, combined with top and punchy academics and experience is a combination likely to push you from the top 100 to the top 10 candidates for strategy consulting roles.

I’ll be back soon to give you some pointers to ensure that you’re the one person that a consulting firm chooses for an entry level role.

The author is currently working for a large management consultant in the City of London. James Smith is a pseudonym. 

Photo: Alexis84/thinkstock

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Drummond Woodsum names 5 shareholders, launches new consulting business – Press Herald

Drummond Woodsum named five new shareholders: Adrianne Fouts, Rodney Lake, Laurel McClead, Keriann Roman and Christopher Stevenson.

Fouts joined the firm in 2012 and is a member of its trial services group. She works primarily in the area of commercial litigation, representing clients in both federal and state trial and appellate courts. She also advises the firm’s higher education clients with respect to student affairs and Title IX compliance issues.

Lake is a tax and business lawyer, who represents businesses and owners in transactions such as mergers, acquisitions, financings, restructurings and dispositions, as well as in tax controversies before taxing authorities.

McClead is a member of the firm’s labor and employment group. She counsels public and private employers on compliance with state and federal employment laws.

Roman joined the firm in 2012 and practices in the firm’s municipal and trial services groups. She works with numerous municipalities on a variety of issues including land use matters, municipal finance, tax abatements, town warrants and employment matters.

Stevenson joined the firm in 2008 and practices with the firm’s business services and public sector groups. He specializes in the areas of tax and employee benefits law.

Drummond Woodsum also launched a new consulting business, Drummond Woodsum Strategic Consulting.
Toby McGrath, former deputy chief of staff for U.S. Sen. Angus King, was named managing director of DWSC.
McGrath brings 15 years of experience in the legislative and electoral process to assist clients in achieving their legislative, organizational, public policy and electoral goals.
The business offers services including government affairs, organizational development, grassroots organizing and campaigns.

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