BearingPoint Bankrupcy
In the news today is the announcement that the consulting firm that was an outgrowth of KPMG, BearingPoint, has filed Chapter 11. I have a few questions for the community.
- Did they bill by the hour? If so, how do you lose money? The only way I can think of is by keeping on people that you have no work for.
- If they did not bill by the hour, they were clearly terrible pricers. Who would hired a consulting company that was clear managed by inept business people?
- What happens to intellectual property in these cases? The real value of the company is the knowledge of the people (with the exception of those on pricing engagements), what do the creditors do, extract brain cells?
