Industry Watch-July 2010

According to researchers at the Boston Consulting Group, an economic downturn is a perfect time for mergers and acquisitions.

Apparently seeing it the same way, Deloitte is in the market for acquisitions. A year ago, Deloitte acquired the public sector practice of the bankrupt firm, BearingPoint. And now, the firm is on the lookout for new opportunities.

Consulting firm, Mercer, is also in the hunt. Mercer has acquired IPA, a health and benefits administration technology provider, hoping to use the acquisition to support its planned expansion into the health and benefits mid-market outsourcing business.

Rumors are still out there about the potential for a Booz & Company and AT Kearney merger. If it happens, the combined practice could gain a firm hold on the mediocre middle. The merger might realize substantial cost reductions from slashing overhead and administrative cost, but it would take value beyond that to make this a decent deal. If the merger is approved, expect an epic, ego-fueled battle for control of the combined firm and for the distribution of its earnings to partners.

In other news, consulting and business outsourcing giant, Accenture, reported encouraging third-quarter results that the firm characterized as a momentum builder. Accenture executives cited strong performance in their management and technology consulting practices as an indicator that the global economy is improving.