'Big Five will still split'.
Big Five firms will still need to split their audit and consultancy
Big Five firms will still need to split their audit and consultancy
Nick Land said the market would force the changes despite the lack of regulatory pressure on the big firms.
Speaking a week before E&Y publishes its annual report, expected to reveal double-digit growth, Land said the consulting sector was going through radical change.
‘To be a global leader you need to have IT content and capability, as there is increasing convergence between consultancies and hardware and software companies,’ he said.
‘But would you have the investment power to meet the revolution?’ he asked.
Earlier this year Ernst & Young completed the sale of its consultancy to Cap Gemini for $8bn.
PricewaterhouseCoopers’ negotiations to sell its consultancy to Hewlett Packard collapsed earlier this month.
Land listed a number of hurdles for other Big Five firms, including market volatility and the small number of realistic options, particularly a trade sale.
‘There are not that many businesses out there that can afford to do this or would contemplate doing it,’ said Land.
KPMG’s efforts to seek an IPO in the US have been delayed first by regulatory issues and more recently by market conditions.
In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...
View resourceIn recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...
View resourceIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceThe first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...
View resourceGlobal spend on accountancy outsourcing up by 40% in the space of five years. News comes as accountancy outsourcing specialist AdvanceTrack reports en...
View articleFollowing a profitability review, Deloitte has decided to scale back its UK deals business due to lower returns. This strategic shift could lead to jo...
View articleUK-based Dow Schofield Watts (DSW), a mid-market professional services network, announced the creation of a new division called DSW Principal Partners...
View articleEY has been undergoing significant cost-cutting measures and streamlining its operations since the abandonment of Project Everest. The firm has made t...
View articleTransitioning from an accounting firm to a consultancy model is only one part of the puzzle. The next, equally vital piece is making the market aware ...
View articleThis framework, while providing a top-line view, underscores the importance of strategic vision, operational excellence, and the spirit of continuous ...
View articleLooking ahead, the Big 4 firms face a challenging year, with ongoing cost-of-living concerns, slow economic growth, rising geopolitical tensions, and ...
View articleLast month it was reported that Deloitte would be cutting approximately 1,200 jobs in the United States, making it the latest of the Big Four accounti...
View article