I know this isn't exactly a hot topic on this fora, and most people wouldn't categorize valuation as a consulting function, but as I've stated in other posts, there seems to be increased interest/traction in the area. The fact of the matter is that valuation groups typically fall under Advisory and often have 'consultant' titles. Either way, in my 2+ year valuation career, I've come across many different valuation groups, each with varying niches and levels of quality. I think this topic might be helpful for those recent college/MSF grads looking into bval as a potential profession.
The point of this thread is to get a sense of how this community would rank the top 5 business valuation firms. Below is a list of firms that come to mind immediately, but please feel free to add in case I've missed any big ones:
Deloitte
EY
PwC
KPMG
BDO
Grant Thornton
CohnReznick
Houliahn Lokey
Duff & Phelps
MPI (Management Planning Inc)
VRC (Valuation Research Corporation)
Withum
Andersen Tax
RSM
Baker Tilly
CBIZ
Mercer Capital
Again, a list of your top 3-5 with your bottom 3 would be appreciated. An explanation of your ranking would helpful as well.
top 4 consulting valuation firms
For the most part, our users shared that the top valuation firms to work at are Houlihan Lokey, Duff & Phelps, and the big 4. Our users shard their individual rankings below.
StrategyJunkie - Investment Banking AnalystI would say Houlihan, D&P, and the Big 4. IMO, the independent ones beat Big 4 out as far as experience since Big 4 does a lot of review audit work.
realjackryan - Investment Banking AnalystLeaving out Big 4, I'd say:
- Houlihan Lokey
- Duff and Phelps
- Stout Risius Ross
Houlihan Lokey takes the cake with more advanced transaction - related business; but D&P literally wrote the book on Valuation (Cost of Capital) and writes new issues every other year.
kenneth635 - Corporate Finance AnalystI worked in valuation for a few years before transitioning out but the top 5 for me in terms of work, pay, and exit opps would be:
- Houlihan Lokey
- Deloitte
- Duff & Phelps
- PwC
- KPMG
You can learn more about the valuation group at one of the top firms, Duff & Phelps, below.
You can read more about all the above mentioned firms on the WSO Company Database.
Read More About Valuation Firms on WSO
- How Big Is Company Valuation/ Financial Modelling At MBB Firms?
- Boutique Valuation Firm Or Big Four Financial Due Diligence?
- Should I Leave My Current Position For A Valuation Firm?
Preparing for Investment Banking Interviews?
The WSO investment banking interview course is designed by countless professionals with real world experience, tailored to people aspiring to break into the industry. This guide will help you learn how to answer these questions and many, many more.
For some perspective from across the pond:
Germany The German market for valuation appraisals is (my guess) 80-90% controlled by audit firms, mostly big 4 but also Grant Thornton, Baker Tilly and some others. The rest is Duff & Phelps and a few other specialized consulting firms (often spin offs of the mentioned firms). The IDW s1 ("Principles for the Performance of Business Valuations") of the German auditor's association is the de facto standard for court decisions and also for non-dispute-related valuation appraisals. It is fairly explicit (e.g. it tells you to use DCF and also which market risk premium to apply). Some companies' articles of association would even preview that any disputes over the reimbursement of parting partners should be decided based on an audit firm's IDW S 1 appraisal. While lately experiencing some competition from other industry associations' sets of standards, I'd assume that 95% of appraisals (even those written by non-audit firms) refer to the IDW S 1 auditor standard. That actually makes valuation disputes in Germany somewhat predictable. EDIT: For fairness opinions, the market is more 50-50 banks vs. audit firms. Houlihan Lokey writes a ton of FOs.
France The French market does not have such a dominance of audit firms . While, naturally, all the audit firms are active in the market, there is less of a de facto standard as there are several associations which publish valuation guidelines that - for the most part - are more vague than the above-mentioned IDW S 1. Therefore, there is a stronger presence of (specialiced or not) consulting firms and also many small firms (think 2-10 people). It appears to me also that court rulings on presented valuations are less coherent / vary more widely when it comes to what is acceptable in valuation methodology and assumptions (than in Germany).