That's a tough place to make an acquisition these days (for a relatively small company like TAVA), unless you can find a principal in a smaller ERP integration firm that is looking to make an exit. With billing rates still $300+ in even the smaller firms, it is hard for an owner to give up that kind of cash flow and profitability, and makes them significantly more expensive than plant floor control integrators like Mangan.
When you walk through a trade show like SAP's Sapphire or I2's annual gathering, you see a number of 10-50 person consultancies who could be potential targets. Problem is, most often, the price is too high, for the reasons described above.
Second question TAVA has to ask itself, with a strong dose of reality, is where they want to play in the ERP/SCM game. Personally, I don't think they have a chance of taking on the big players in the Fortune 1000 accounts for ERP/SCM implementation other than winning a few border skirmishes by dropping their prices. I think they should focus on ERP/SCM *integration* with plant floor and MES systems, and if interested in moving beyond that, should focus on mid-market or down-market ERP/SCM for $100M-$2B manufacturers.
I also maintain that TAVA should exploit its expanding size and geographical presence and absolutely *OWN* the MES space for food, beverage, CPG, and related industries.
Clearly I don't have an opinion, though... ;> |
