Check out this news here.
BAH to break up and have its consultancy services separate ! BAH generates about USD 4bn a year revenue. Given this, the firm's conservative valuations will be easily in the ball park of USD 50 bn+. The partners will have a ball in case this deal goes through.
I am trying to gauge what will Carlyle gain if they get control of these assets (which in absolute terms are - NONE! - most of the assets are intangibles). The people may or may not stick out with BAH - given the turmoil that BAH consulting will undergo with new paymasters in form of Carlyle. Also, as partnership targets of sr managers and managers will get hazed out - there may be a certain degree of attrition to face.
Having said that, Carlyle can deploy the staff and the managers in private equity related work. Their existing assets can be used for it. However, what impact they can bring is a suspect as 70% of BAH's consulting division works for the government and the dynamics in that sphere are much different than commercial sector (critical success factors are more political than merit-based).
I am not sure if this will affect BAH Consulting's ability to attract good talent from b-schools !? Time will tell...
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