Deloitte to offer Post-Merger Consulting

Date: 29-08-2007
Source: The Economic Times

Deloitte & Touche India Consulting is set to launch a new practice from its global repertoire to add to its bouquet of services in India. The new practice — post-merger integration - is aimed at Indian companies which are increasingly getting into the global M&A act.

“The new consulting practice will assist corporates to evolve a common set of business practices in the post M&A stage. It will help the companies work towards a common technology platform, a common HR policy for talent management, among other issues,” Deloitte & Touche Consulting India MD Roopen Roy told ET.

“Traditionally, Deloitte has focused on assisting MNC clients to enter India. Now, we will also focus on Indian companies going abroad to acquire companies. For them, we will offer a full service on both sides of the border,” Mr Roy added.

A large number of M&A deals that do not succeed usually stumble at the post merger phase, due to a clash in corporate cultures. Hence, managing cultural issues forms a significant part of the post-merger scenario. “Managing fears and anxiety among employees in affected companies and cultural assimilation also forms a critical aspect of consulting practice,” Mr Roy added.

Indian corporates, especially metal manufacturing companies in the steel and aluminium sector, as well as domestic pharma majors, have been aggressive in picking up interests abroad in recent years. In turn, they offer a tremendous opportunity for growth to consultants.

Mr Roy who was inducted as a global consulting executive at Deloitte recently, joined the company last month along with three of his former colleagues at PricewaterhouseCoopers (PwC). Deloitte’s three main lines of business include strategy & operations, human capital and technology. The consulting business accounted for 45% or roughly around $9 billion of Deloitte’s global revenues in 2006, according to Kennedy Information.

Outlining Deloitte’s future growth strategy in India he said: “Our primary focus in the business consulting space will be on government sector, in particular on PSU restructuring,” he added. It is similar to Deloitte’s strategy in China, where it is heavily focused on state owned enterprises. “In India, Deloitte would also concentrate on jobs related to power sector reforms, municipal service and e-governance. We will also beef up our technology practice,” Mr Roy said.

With a 8,000-strong team of professionals in India, Deloitte and its entities has one of the largest employee bases. Some 5,500 of them are engaged in serving the global market, which is nearly twice the size of its nearest competitors. “Our aim is to leverage this pool and global network to offer best services to our global client base out of India,” Mr Roy said.