“M&A always competes against the status quo. And in a world that doesn’t change as frequently, or as dramatically, or as violently, the ability to sit out a transaction typically has relatively modest consequences,” he said. “But in a fast-changing world where competitors are coming up from behind -- literally overnight -- and buying behaviors are changing and regulation is dynamic, the cost of standing still becomes much greater.”
In terms of his own industry, Taubman said disruption is likely to come from the improvements in machine learning that are threatening so many aspects of working life.
“At it’s simplest form, our firm is man versus machine. We are a talent-focused organization and if we can recruit, attract, and retain the best talent -- and create a culture that gets that talent to work together -- we can provide superior advice to clients, superior capabilities and the like,” Taubman said.
Other firms have more infrastructure, and often times the power of the organization trumps the power of their people, he said.
“As you try and extrapolate out, the question is: will there be data analytics and other capabilities that the machine-oriented firms can develop over time that can reduce the influence of the personal touch?” Taubman said. “I am a big believer that it is a hybrid -- that you need data, that you need analytics, you need proprietary insights, but you also need relationships, and experience, and judgment. So we are always thinking about where the disruptive force is and hopefully we’ll stay ahead of it.”
This article was provided by Bloomberg News.