{ "media_type": "text", "post_content": "If Carlyle Group led the spinoff of Booz & Co and left it weak and undercapitalized, who did the DD and strategic plan? Deliberate attempt by MBB to cripple competitor? 🤔 #alt-consulting conspiracy", "post_id": "584040bb934a2b001673f66f", "reply_count": 8, "vote_count": 4, "bowl_id": "552d1d24dc1c586b09d2d051", "bowl_name": "Consulting" }

If Carlyle Group led the spinoff of Booz & Co and left it weak and undercapitalized, who did the DD and strategic plan? Deliberate attempt by MBB to cripple competitor? 🤔 #alt-consulting conspiracy

like
Posting as :
works at
You are currently posting as works at

It makes sense for them to offload commercial as the government business was the money maker and to use terms like under capitalized is wrong the business was generating enough cash to support itself. They spun it off to the public so it was the market that set the price and valued the business. Not sure you can claim it was under capitalized if it was the market that set the price. Reality is that Booz did not invest in its commercial business for years and they were well behind most of their competitors

like

The subtle point trying to be made is that Booz would have been successful if they had gotten a "fair" amount of money in the deal. My point is that their failure was their own fault, not that the deal was unfair. Booz like Monitor (even after the spinoff) had a disproportionate concentration of capital among a few senior partners. Rather than re-invest like ATK they took the money and ran like Monitor's partners and crippled an already weaker business. This skewed equity stake was why they could never pull of an ATK merger--ATK didn't want to have a handful of partners control so much of the firm/equity.

like

And talk about knocking out two birds with one stone! Kill the strategy competitor, burden the downstream competitor with post-merger costs and large cash outlays.

If Booz was so strong why didn't Carlyle keep it? Undercapitalized? What did the partners do with all of the BAH equity payout? #occamsrazor

Technically Carlyle took a majority share of the government consulting business and offloaded the commercial group (that's Booz & Co) as a standalone unit. The partners took the equity and cashed out (so I hear)... which brings me to my next point. Consulting is rigged!

@C2 dropping the sarcastic tone of the previous posts, the answer is "it depends." The commercial business was indeed the smaller revenue generator, but it accounted for a third with much less headcount. The order of the transaction (I believe) was spinoff, then IPO of the gov't business. Ignoring the implications for BAH with regards to public vs. private valuation, it is entirely possible that Booz & Co got a raw deal out of the spinoff, depending on the partner structure and seniority of the commercial partners. If, for instance, the combined BAH's most senior partners were on the gov't side and the equity structure more heavily weighted tenure and revenue over profitability, it is entirely conceivable that the spinout firm was "undervalued." More to the point, this would've left it without sufficient scale and capital for which to invest with. You can certainly blame the partners for not being willing to take on debt to finance investments, make capital calls, or shed lower-preforming parts of the business, and the example above is unsubstantiated by the publicly available evidence. But it's not implausible by any stretch of the imagination.

Well the firm doing the financial due diligence only can so much in terms of advising true ebitda and discussing trends. What the PE firm decide to do later is beyond their reach. So what's the point ?

EY - think he meant the CDD, not the FDD.

Related Posts

Anyone have success cold applying for VC roles and not in MBB? Just submitted an app last week and they should be reaching out this week, but I’m not sure how long to wait before giving up…

like

Has anyone regretted the decision to work at one MBB over another when you had more than one MBB offer? Why did you regret it?

like

Best way to spend Hilton points ? got about 500k points but cannot travel this year?

like

Anyone get an offer from another MBB firm while recruiting? Why did you make the choice you made?

How were the travel opportunities in KPMG Global prior to the pandemic ? Esp. in management consulting

I have an issue that’s been on my mind. I’m not big. I’m 5’4 and around 125 lbs, but pretty much all of my friends have disordered eating habits. I’m supposed to go on a beach vacation with them in two weeks and all I can think about is how much bigger I’m going to look next to them. I almost want to cancel my flight out of anxiety.

like

Flying out of ORD mostly. Is United the better option? Delta seems to have pretty decent options too. No more American.

like

I was platinum lifetime marriott... on the spg app, i now show gold lifetime. That should show Platinum lifetime right?

How has travel been for Strategy & Consulting? Pre covid and current?

How does MBB MBA sponsorship differ? I had heard Bain pays the school directly (non-taxed) whereas M/B don't? Resulting in a substantial ($30-80K) difference?

like

Is Seattle a good city with enough management consulting opportunities? For companies like MBB, LEK, Kearney and Accenture?

Are there any health consulting firms that actively hire clinicians and do a lot of patient journeys, value based healthcare and/or design of healthcare facilities work? I have clinical experience, and am currently working for MBB, but my interest is in health outcomes and I haven’t been exposed to this at MBB so looking to swap firms to something more boutique and specialised. Understanding that this will probably be after Covid but wanting to do some research prior.

like

Does anyone gave any insight into Amazon’s M&A group? Culture, hours, travel required, WLB, etc. Thanks!

like

I saw recently that Delta medallion status holders can earn miles when renting from Hertz. Does this apply only when booking through Delta or using the Delta discount code, or does this also work when booking through company portals? Any knowledge or experience here much appreciated!

like

Is MBB eliminating travel for a junior staff? Other firms are considering this move.

like

Which of B4 + MBB pays SWE/DS the most? I know they can't compare to FAANG, but just among these guys, who pays the most? Who has the best talent/tech implementations?

like

Asking for genuine feedback from experienced hires into MBB Europe. Assuming a strong CV - How's that been for you, worth the effort all things considered?

like

Anyone go to big 4 post MBA and two years later transfer to mbb? Is it even possible ?

like

Looking for recommendations for a portable second monitor. I currently have a big one that just is too cumbersome. I am looking at something more lightweight, easier for travel, but still large enough to see spreadsheets and tax returns.

likehelpful

I’m a MBB EM/PL, 5YOE, no MBA. Is it possible to exit to a $350k+ TC role in industry? Feel like lack of MBA is inhibiting for high TC given my age.

likefunny

Additional Posts

Bridal shower gift ideas for a best friend? She explicitly said no robes/skincare/makeup haha. I’m thinking something fun like a game, cute/sexy lounge set….?

like

Will one be eligible for hikes (at any point in the year) if they move verticals by internal movement in D USI? Eg. Shifting from Tax to Audit or something like that.

like

Is it still worth it to sign up for AmEx membership rewards? Not sure if it renews by calendar year.

like

Senior manager wants everyone to share our screen with him for the day so he can monitor what everybody is doing. I personally thing this is ridiculous. Can I ask him send this request in writing?

like

I'm a frontline support rep at a B2C company, and thinking of leveling up: would it help my future salary more to invest time in learning some coding and tech skills or to learn more about pivoting to B2B?

Anyone have success cold applying for VC roles and not in MBB? Just submitted an app last week and they should be reaching out this week, but I’m not sure how long to wait before giving up…

like

Anyone here have experience making SAFE investments? Came across an op. and understand the risks but would love to hear from people with experience making these kinds of investments.

likehelpful

Just ordered one caramel latte on Uber eats. That is all.

Post Photo
funnylikeuplifting

Hi Fishes I'm holding offers from Accenture and Wipro, With A it is a generic opportunity where the work and the client would be decided after joining. But the learning opportunities would be more. With W it was a client interview and the client is one of global leader in financial service and I really like to work with this client. W's pay is 2-3L higher than A. This is for Cybersecurity domain where A is comparatively better. I'm looking to stay for long term, Please help me decide.

What is a median base salary for a client consulting manager role in VCA team? 8 YOE

like

If you get an offer and accept and then you get a bigger offer and a shorter commute. What are the consequences of rejecting the first offer after that You have accepted?

like
like

Has anyone regretted the decision to work at one MBB over another when you had more than one MBB offer? Why did you regret it?

like

I am a developer with more than 12 years experience. Thinking about going to school for a MS in Technology Management and would like to hear some opinions?

like

Veritas is doing a study buddy sale (BOGO) and the sale ends today. Anyone want to take the class with me? It’s $1450 for 36 hours of live online class.

like

Kind of aggravated with the example male leadership is setting right now with regard to parenting at CV. At least 5 men in leadership have had new babies in the last month and it seems like some have taken no time off or only the bare minimum. We have 12 weeks and should be encouraged to use it! If leadership isn’t taking advantage of their own policy, what does that say to the rest of the staff? In my perspective, this is likely further contributing to the gender disparity in CV leadership

likesmart

Need to move by 2/15 and I cannot find an apartment downtown that is in budget and decent quality. Why are apartments so hard to come by? Budget is 5k for a 2 bedroom

like

I am looking forward to HR round for Macquarie Gurugram. All rounds went well except for numerical reasoning section in psychometric test. My yoe is exactly 8 years. My current CTC is 16.2 and expecting raise in current company in 2-3 months. Q1- What is the maximum I can demand in Macquarie in HR round? Initially, before interviews started, I mentioned 27LPA (negotiable). I have a past offer (not current) of 25.5 LPA. Q2 do they decline offering in case we get adamant abt high salary 27Lpa?

Looking for feedback on consulting at IBM - culture, diversity, opportunities, salary etc

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
Download Fishbowl to see what others are saying
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

For account settings, visit Fishbowl on Desktop Browser or

General

Legal