The Financial Advisory (or financial consulting) segment delivers consulting services that build on a strong financial analytical basis. Service offerings compass a wide variety of topics, such as transaction services, risk management, tax advisory, real estate advisory, compliance and litigation services to name a few, however, financial and accounting skills always are the core of the services delivered.
The financial advisory segment is approximated to be worth $67 billion, roughly a quarter of the global consulting market. The market for financial advisory consists of eight main disciplines:
- Transaction Services
- Corporate Finance
- Crisis & Recovery
- Risk Management
What does a financial advisory consultant do?
Unlike the other consulting segments, the main disciplines within Financial Advisory are less associated from a functional perspective. Other financial consulting services are:
- Accounting Advisory
- Tax Advisory
- Real Estate Advisory
- Forensics & Litigation
Transaction services supply client with a range of services related to the acquisition, merger or privation of an organisation. Services include setting an M&A strategy, target screening, valuations and due diligence in the pre-deal process to post-merger integration support and other operational transaction services after a deal has been disclosed.
Corporate finance is the area of consulting that deals with funding and capital structure matters. Key matters comprise of financing (including alternative investments) restructuring, working capital management (also closely tied to the finance consulting segment within operations consulting), IPO’s and capital markets.
When companies find themselves in financial difficulties, they usually turn to crisis & recovery advisors. Experts support them with getting a hold on the crisis situation (short term) and afterwards ensuring a turnaround plan is in place for the longer term. Chief services include insolvency (or bankruptcy) management (consultants are often called in as administrators), restructuring, turnaround advisory and debt management.