1 hr ago
Big Four Alumni Build Boutique Consulting Rivals for Startups
Some experienced workers from the Big Four accounting firms are starting smaller consulting companies.
These companies want to advise startups, private-equity firms and venture-capital firms.
Many of the new partners previously worked in auditing.
Some audit workers want to move into consulting because auditing can create conflicts of interest.
The boutique firms say they can hire these partners without offering much more pay.
Instead, they offer ownership in the company through equity.
That equity can stay invested even after a partner leaves.
This gives experienced workers another reason to join the smaller consulting firms.
Former Big Four professionals are building boutique consulting firms.
The new firms target startups, private-equity firms and venture-capital firms.
Many recruited senior partners come from Big Four audit teams.
Audit professionals may seek consulting roles to avoid conflicts of interest.
The firms offer equity that can remain invested after a partner leaves.
- Who
- Former Big Four professionals and senior partners, including people from audit teams.
- What
- They are building boutique consulting firms that target startups, private-equity firms and venture-capital firms.
- Where
- When
- Why
- Some audit professionals want to work in consulting without potential conflicts of interest, while the firms use equity to attract senior partners.
Key facts
- Businesses involved
- Boutique consulting firms founded or staffed by Big Four alumni
- Target clients
- Startups, private-equity firms and venture-capital firms
- Recruitment pool
- Many senior partners are hired from Big Four audit teams
- Reason for moving
- Some audit professionals want consulting roles without conflicts of interest
- Compensation approach
- Firms say they can hire partners without a significant pay increase
- Additional incentive
- Equity may remain invested after a partner leaves
Quotes
Khatri
A spokesperson or executive identified in the article as Khatri
“Many of the Big Four senior partners we hire are from the audit teams who want to work in the consulting sector and do not want any conflict of interest, which is common if you are in the audit team of a firm. We manage to hire without a significant raise but what we offer additionally is equity, which can remain invested in the company even when the partner leaves.”
livemint.com
Sources
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