Valuation vs. Restructuring vs. Transaction Advisory Services vs. Financial Due Diligence

Can someone provide a high level overview of the similarities and differences between the following service areas of financial consulting: Valuation, Restructuring (consulting), Transaction Advisory Services, and Financial Due Diligence?

I know the Big Four has a pretty strong grip on all of these, but do certain firms specialize in certain areas?

What does the nature of work look like within each type of practice? Similar to investment banking? Private equity? Management consulting?

How do exit opportunities differ across each area?

Is compensation consistent between the four of them?

Thanks.

 

Valuation: Lots of modelling and stuff like purchase price allocation Restructuring: Same as it is at any bank/boutique; Google it Transaction Advisory / Transaction Services / TAS: Due diligence FDD: Subset of TAS

Similar compensation at similar levels. Exit opps are roughly similar between Valuation and TAS. Some of the Big 4 even lump these departments together. Rx opps are a bit different.

 

Thanks Angus Macgyver, this is all very helpful. For some reason, I was under the impression that Restructuring Consulting was different than Restructuring Banking. How are Big Four Restructuring practices viewed versus the Blackstone/Lazard's of the world? What are some examples of other relevant firms in this space?

In your experience, what are common exit opps for the Valuation/TAS crowd? Based on your previous answer, I'm guessing Rx places well into Corp Dev/HF/PE.

Thx again.

We get the world we deserve.
 

From my experience, FDD and Vals are a part of TAS. Can't speak to restructuring.

Vals is modeling for goodwill impairment testing, purchase price allocation, and stock option valuation. This modeling can support audit work, but the more interesting work is non-audit client work. This can include strategic valuations (pre-deal).

Vals is great for getting modeling experience early on. Because of the audit support, you could find yourself doing many different models in a week. They will be mostly dcf approach.

FDD is data-intense. Lots of data manipulation and supporting the audit team. Some firms make FDD associates complete an audit rotation.

Hope that helps!

 
Best Response

Just a couple clarifying points here that have been made elsewhere in these forums (look around). RX consulting (operational turnaround) is definitely different than RX banking. When a company is entering a distressed situation (cash flow issues, ch. 11 preparation, blowing loan covenants, etc.), a company will often hire 1) an operational consulting adviser who may become the CFO or Chief Restructuring Officer, 2) a banker to assist in refinancing / distressed M&A, and 3) a law firm to navigate the process.

RX consulting is a mix of management consulting with some accounting / banking skills thrown in. RX consultants manage cash, help negotiate loans, etc. They are on-site with the client helping manage the process. RX bankers assist in obtaining in restructuring the financial piece through new financing, distressed M&A, etc.

Strong RX consulting firms: Alvarez & Marsal, AlixPartners, FTI Consulting.

Good RX advisory (not sure who is really "the best"): Houlihan Lokey, Blackstone, maybe Moelis.

Big 4 does RX consulting work, very little RX banking work.

 

Accusamus quo ipsa labore dolor explicabo sed accusantium labore. Commodi asperiores ut suscipit consequuntur impedit eveniet. Temporibus unde mollitia sed. Nulla expedita et omnis beatae at suscipit amet est.

Commodi sit minus suscipit dolor unde ut. Quisquam aspernatur dolorem repellendus rem quae aliquid. Ab quia similique sed delectus eaque. Mollitia nihil debitis beatae et et doloremque perspiciatis. Voluptatem vitae ut aut et. Nemo quaerat eveniet provident laborum rerum nobis voluptates.

Dignissimos et excepturi autem recusandae eum. Sit atque veniam itaque dicta. Quis animi earum temporibus repellat deleniti provident.

Vitae repellat dolore ut magni quia odio. Totam aspernatur omnis quis iure iure sit. Quia et asperiores harum autem minus dolorem tempora autem.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (65) $168
  • 1st Year Analyst (198) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
98.9
5
Secyh62's picture
Secyh62
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”