The end of the highly diversifed organization…
…represents a real opportunity for M&A services providers. While conducting my research into the M&A and broader corporate strategy services space, I observed that business intelligence and performance management (BI&PM) programs are still very high on the executive agenda. Increased investment in analytic capabilities, as well as moves to becoming more sophisticated and transparent, will lead to the end of the highly diversified organization. Why? With these new capabilities companies will have a better picture of their portfolio and will be able to more wisely invest/divest into core/non-core-related assets. In the next 4-5 years we will see — induced/accelerated by the recession — that companies will move closer again to their core business, and not only for cost reasons. Hence BI&PM will fuel M&A activity and also lead to better M&As. I am postulating that there is a positive correlation between "analytic maturity " and " M&A maturity". I already had great conversations with some of you around these assumptions, but would like to broaden the discussion. Two questions for you:
1. Do you agree?
2. How are/would you measure "analytic maturity" and "M&A maturity" of a company?
Curious to hear your thoughts.