Big 4 Leading the Consolidation of Management Consulting Firms

Four years ago it was almost unheard of for a Big 4 firm to engage in M&A with the exception of the post Enron period when each (except Deloitte) sold their consulting business.  Not only have each of the Big 4 re-focused efforts on consulting (as opposed to accounting), but they are employing M&A as a critical component of their growth strategy. 

Most notable are the larger acquisitions completed by PWC for Diamond Technology Group and more recently PRTM.  Not to be outdone, Deloitte has also completed a number of consulting acquisitions over the past couple of years.  These firms, who are typically regarded as highly conservative and bureaucratic, have become aggressive and agile in the M&A market.  Each of these firms continue to operate as a private partnership, but they have instituted processes and policies to enable them to in many cases pay premium values for consulting assets.