Financial due diligence boutique firms (A&M, FTI consulting etc.)

Hi everyone,

I was wondering what type of projects A&M and FTI consulting mainly spend their time on in their financial due diligence business. Mainly buy-side projects or sell-side projects?

The reason why I am asking is because big 4 often spends a lot of time on sell-side projects, because they are large organisations with many people (resources) which is often required when preparing a vendor due diligence report.

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I work in FDD and am familiar with both of the firms. You'll be doing a lot of both even at these smaller "boutiques" (I know it's not the right word, but in the FDD world, A&M:Big 4::Lazard:Goldman IMO).

The smaller ones may do more buyside PE work because that was the bread-and-butter of the FDD industry historically. Sell-side work has only recently arose because there's been a need for smaller companies with less sophisticated teams to help package themselves to potential buyers and prep for a merger. Firms are entering this arena because fees can sometimes be higher as these engagements drag on, and there's fees to be collected for rollforwards (which are annoying, btw).

That's probably TMI, but long story short, you'll get exposure to both at Big 4 and the Boutiques. You'll probably be doing more PE work at the boutiques, but this is evolving and it will depend more on which partner you work with and their book of business/relationships in the industry.

 

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