KPMG reveals combined deal advisory and consulting practice
The recent advisory cuts at KPMG will affect around 110 staff members in the UK
Following the news KPMG will make significant cuts to its deal advisory team, the firm has unveiled plans to merge its consulting and deal advisory divisions.
This will result in the establishment of a new entity known as Advisory, it was reported on October 26.
On October 17, The Financial Times reported KPMG would reduce its deal advisory team by 7%, coinciding with Deloitte’s announcement to eliminate 800 advisory positions just weeks earlier.
The decrease in demand for consulting services is a direct result of economic uncertainty, and the dearth of merger and acquisition transactions has had an adverse effect on deal advisory activities, according to the FT’s report.
However, in an emailed statement to Accountancy Age, a KPMG spokesperson stressed the merger was not a result of the cuts announced recently and has been planned for some time.
The Big Four firm states the combined business will streamline the company’s organisational framework and enhance KPMG UK’s ability to cater to client requirements by offering a comprehensive “end-to-end” service all in one place.
Jon Holt, chief executive and senior partner at KPMG UK, said in a statement that its new Advisory practice will “bring together our consulting and deals expertise to provide a great service for our clients.”
Lisa Fernihough ,who is currently the chief people officer at KPMG UK will take the helm of the upcoming advisory business, which is scheduled to commence serving both current and prospective clients starting on January 1, 2024.
In a statement, she said it was an “honour” to lead the new team and would relish the opportunity.
“I know how transformative this will be, not only for our clients in bringing them a simpler, more effective service, but because of the development and career opportunities it will bring to our people,” she added.
“Lisa is the perfect person to lead this important business for us,” stated Holt. “She is an outstanding leader and brings to the role a huge depth of experience.”
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Fernihough will be succeeding roles previously held by Liz Claydon and David Rowlands, who served as the heads of Deal Advisory and Consulting for the firm in the UK. They have now resigned from their positions on the UK Executive Committee.
Is the demand for advisory services there?
Speaking to Accountancy Age, Lee Humble, UK head of corporate finance at Azets said the next general election will be pivotal in determining how the deal advisory market will perform.
While the Big Four firms have made cuts, Azets enjoyed a record result in the initial quarter of the current fiscal year, the company expanded its finance team to accommodate the rising demand for its service.
However, despite recent market performance, a KPMG spokesperson said the move will not result in any job losses.
“In fact, creating a unified Advisory capability is a move to grow the business, not scale back on our ambitions. Our people will have more opportunities to move and develop within Advisory than they had before,” Humble said.
