The trend in recent years has been for conglomerates to focus on core capabilities. Their biggest challenges? To deal with rapid changes in technology and to effectively deploy managerial talent.

Large companies must profitably manage their expanding portfolios while avoiding acquisitions that clash with their current mix of business. To maximize cost savings and marketing impact, a conglomerate will want to acquire companies that have direct or related synergies with one or more of its existing divisions.

In contrast to the behemoths of the late 1980s, today's successful conglomerates play to their strengths and streamline their organizations accordingly. The successful ones tend to have very focused, capable management teams that understand the role of the corporate center and know how to correctly distribute available cash throughout the organization.

Bain's Conglomerates Experience

Bain has worked with a wide variety of multinational conglomerates spanning all industry segments and geographies. For conglomerates seeking effective advice on strategy, operations and organizational projects, Bain is the consultancy of choice. Our areas of expertise include corporate and portfolio strategies, business unit strategy, profit pool analysis and turnarounds.

During periods of M&A activity-or even in times of internal change-we've helped conglomerates achieve operating synergies across businesses by making the most of overhead and reducing costs. Increasingly, conglomerates are turning to us to streamline and enhance their supply chains.

Bain has also helped many conglomerates better understand the role of the corporate center and manage large-scale change processes throughout the organization.

To find out more about Bain's work in this industry, please contact the practice.