Bekker's Blog

Blog archive

Mike Harvath's 2010 Marching Orders

Business-growth consultant and friend of the magazine Mike Harvath came through with a contribution for our readers in this year's RCP "Marching Orders 2010" feature. Mike, who is president and CEO of the Revenue Rocket Consulting Group, wrote:

"Think of two things this year: mergers and acquisitions (M&A) and business focus.

"We saw a healthy volume of M&A activity in the sector of the market in which we specialize: IT services companies in the $5 million to $50 million range. These executives took advantage of the long-held dictum that they can gain a competitive advantage with a countercyclical strategy for M&A.

"We see M&A continuing to be a smart growth strategy in 2010, but we also see new pressures coming to the market in the declining dollar. Domestic buyers could find themselves being priced out of the market by foreign buyers looking to increase their share of the U.S. market. If you're looking at M&A in 2010, you'd be well-advised to acquire smartly and strategically. This means buying companies that strengthen your tightly defined offering in the market. On the other hand, if you're looking to sell, you may find some attractive suitors out there.

"The IT services companies that prospered in 2009 did so because of their strict allegiance to focus and execution. They were uniquely positioned at the intersection of a technical and vertical specialization. This allowed them to attract skittish, tight-fisted buyers who were looking for the assurance of delivery that comes from companies that can speak from a position of authority, with strong expertise and demonstrable proof-of-performance. While the global IT services market looks to begin growing again, the rate appears tepid enough to keep customers playing the risk card closer to their vests. Focus is the name of the game for 2010.

"For those companies that stayed focused and acquired strategically in 2009, good for you. For those that didn't, couldn't or wouldn't, there's still time to catch up to your newly fortified competitive brethren. Don't despair, but also don't hesitate."

Posted by Scott Bekker on January 04, 2010 at 11:58 AM


Featured

  • Microsoft Bolsters Its 5G Chops with Affirmed Networks Acquisition

    Microsoft has acquired Affirmed Networks, buttressing its software-defined networking services just as mobile operators start rolling out 5G wireless technologies.

  • The 2020 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generations of .NET and PowerShell, here's what's on tap from Microsoft this year.

  • Microsoft To Expand Support for Partner-Built MFA in Azure AD

    Microsoft plans to improve the ability of organizations to use third-party multifactor authentication solutions with the Microsoft Azure AD service.

  • 2020 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss. (Now updated with COVID-19-related event changes.)

RCP Update

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.