As many of you have probably heard, the marriage of EDS and AT Kearney is rapidly unraveling. But it seems that the venerable operations consultancy is having a difficult time finding a new suitor. Now that the talks have broken off with Monitor Group, a world of possibilities have opened up. Here are a few potential scenarios you might see play out:
1) The partners conduct a management buyout and raise external capital to complete the transaction.
2) The firm is sold off (or merges) with another consultancy looking to grow its sourcing and supply chain practice (e.g., Huron Group, Accenture, IBM).
3) A non-traditional suitor (e.g., a software player like Ariba, SAP, Oracle, or SSA) decides to swoop in and purchase ATK on the cheap for their deep operations, supply chain, and sourcing knowledge. This scenario is highly unlikely in my book, but would be a gutsy move (though retaining talent and merging cultures could be very challenging, just as EDS found). In the case of Ariba, this might present the option to buy revenue and a customer base on the cheap.
4) The firm slowly dissolves or morphs into something much smaller, as the partners run to other companies with more certain futures.
What do you think will happen to ATK? Post a comment or drop me a line (email@example.com).