Deloitte: the Recruitment Opportunity
An uncertain future with high potential recruitment opportunities have started after the acquisition of Monitor by Deloitte
On November 7th, 2012, Monitor Group filed for bankruptcy protection as a part of a deal to be acquired by Deloitte . The multinational management consulting firm headquartered in Massachusetts, founded by Michael Porter and 5 more entrepreneurs with ties to Harvard Business School failed in their core business: anticipate the future to predict strategic decisions .
But, why they didn’t use his founder 5Forces-analysis? It was a difficult period for them since 2008 with the financial crisis: with a huge decrease in their services demand and flat cost. As a consequence they had to ask for $4.5M to partners and $51M to a private equity firm: Caltius Capital Management . The final consequence: they didn’t have enough cash to pay their bills.
So why was acquired by Deloitte –one of the Big Four largest international networks of accounting and professional services -? There could be many reasons, but the 3 key that comes to my mind are: client’s portfolio growth, service diversification and specific talent recruitment.
First, get advantage of the Monitor’s client’s portfolio to increase Deloitte’s volume of clients. Second, offer a new improved and high quality service of Strategy Advisory to Deloitte’s clients while continue with the Monitor’s ones; and cross-selling Deloitte’s services to Monitor’s clients. And finally hire a huge amount of great consultants with that expertise –from junior to senior levels- and client’s access –generally exclusive for partner level-.
This can happen or not. On one hand, more than 50% of M&A fail and in the other hand, Deloitte has huge experience in this field. The related risks to fail in the previous 3 reasons are generated by: first, about clients; very probably the other Strategy Firms are going to try to attract this previous Monitor’s clients to them. Second, about the expertise; in the near future it depends on the success of the Monitor’s specific talent. And the last one, talent; if you know that you are going to be in a Acquisition process, knowing the risks, very probably you will seek a “B Plan” or a much professional safe situation (because the consultants workforce are needed only if there is enough work –clients-)
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