How do I find out why former clients stopped hiring a management consulting firm?

A management consulting firm will happily talk about current clients. The ones who stopped hiring it tell you more about weaknesses. Start with the project history and pick out clients who used the firm repeatedly and then went quiet, as well as one-time clients who never came back.

Ask the owner for an honest account of each departure. Did the project end naturally? Was the client unhappy with the work, the fees or the people? Did a key consultant leave, or did the client bring the work in-house? Keep notes. The owner may not know every reason.

Then ask for permission to contact several former clients. Be open that you are considering buying the firm, and promise discretion. Ask what they hired the firm for, what went well, what did not and whether they would hire it again. Speak with the person who bought the work, and with the person who used the results. Look for patterns. One client leaving for a reason of its own is ordinary. The same complaint repeated by several tells you about the firm. Weigh them honestly, and ask whether the owner has done anything about them. Your broker, if you use one, can help you set up these conversations.

Key takeaways

• List repeat clients who went quiet and one-time clients who never returned.
• With permission, call former clients and ask what worked, what did not and whether they would return.
• Look for repeated reasons instead of one-off stories.