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Venmyn Deloitte grows from strength to strength
Growth of 25% p.a. over three years into global advisor
Mining services consultancy Venmyn Deloitte this year celebrates the third anniversary of its 2012 acquisition by professional services firm Deloitte. The anniversary caps three years of exceptional international growth averaging 25%.
“Even more remarkable,” says Venmyn Deloitte managing director Andy Clay, “this has been achieved during what has been one of the worst chapters of the commodities cycle”.
The Venmyn business unit has since expanded from a small independent organisation to an independent-minded business unit leveraging off the hundreds of thousands of Deloitte professionals in firms throughout the world.
Deloitte acquired Venmyn to bolster its technical mining advisory capabilities, thereby emphasising the group’s commitment to the global mining industry. For Venmyn, being part of the Deloitte network enabled it to serve a wider market and to enhance its value proposition to clients through the benefits of size and a global presence, says Clay.
“The process of integration was a considerable success in the middle of what has been a highly disruptive and disillusioning time for the mining industry both in South Africa and globally. I attribute the success to an understanding by Deloitte of the need to respect the independence of what was a small firm joining a huge one. Our motto all along was ‘Independence you can trust’ and Deloitte, which is itself a rules-based firm, was clear about protecting our culture and heritage through clearly defined independence rules,” explains Clay.
Since its founding in 1988, Venmyn has been a skills and innovation based organisation, and its staff was advanced through an integration process that risked the loss of skills as an inevitable consequence of changes that are experienced during take-overs.
“We were fortunate to enjoy the understanding of Deloitte partners and directors. This year we established a permanent overseas presence for the first time when Venmyn Deloitte relocated director Neil McKenna to London. Our value proposition has been made available globally through the numerous Deloitte offices, with the advisory services provided either from South Africa or by flying in Registered Professional Competent People (RPCP). The combination of the Venmyn and Deloitte brands, both of which are well trusted in the mining industry, has been a mutually beneficial arrangement for all involved,” says Clay.
“The Venmyn acquisition triggered a journey of integration, with the main focus on differentiation in the market through synergistic offerings, according to Africa Strategy and Innovation leader, Abrie Olivier. “We have seen numerous examples where the Venmyn team, with its unique capabilities, complement our existing offerings to deliver additional value to our clients. At the same time, Venmyn managed to broaden its client and geographical footprint significantly. The successful Venmyn acquisition serves as an example of our continued investment in deep industry skills across the firm,” concludes Olivier.
With commodity prices currently depressed and many mines unviable at these income levels, Clay says that merger and acquisition activity in the mining industry is increasing. Any such acquisition or restructuring transaction requires a report by a RPCP and this is underpinning Deloitte’s strong growth internationally in financial advisory services.
“The mining sector is active right now with more demand than ever for services such as audit support work, valuations, financial restructuring, business restructuring and business rescue. We are also leaders in unconventional oil and gas, and have written the oil and gas code for South Africa,” says Clay.