SOURCE: Kennedy Consulting Research & Advisory

Kennedy Consulting Research & Advisory

March 25, 2010 16:40 ET

More Transaction Advisory Services Work Than Meets the Eye

Kennedy Projects That the Transaction Advisory Services Market Will Grow Faster Than the Overall Volume of the Deals Market

PETERBOROUGH, NH--(Marketwire - March 25, 2010) - The challenges of the past two years have had a marked decline in mergers, acquisitions and other business transactions and a direct negative impact on the business of providing Transaction Advisory Services. In an environment of fewer deals, there is less demand for due diligence and other services that investigate, evaluate and justify purchasing and divestiture decisions.

However, Kennedy Consulting Research & Advisory's latest findings indicate that the shift does not impact the Transaction Advisory Services market to the same degree. These projections, featured in "Transaction Advisory Services Consulting Marketplace," show that the rise in these services will be much higher than the anticipated rise of M&A transactions over the same period.

When asked about the state of the Transaction Advisory Services consulting market relative to the substantial decrease in both the number and average value of deals, Lynne Schneider, Associate Director of Research, Kennedy Consulting Research & Advisory responded, "The correlation is not perfect; and it is critical to note that the size of the market is not determined by deals alone. What we're seeing is a phenomenon of fewer, but more careful deals. For Transaction Advisory Service providers, this means there is still a lot of work to be done with clients on transactions."

To accurately size the Transaction Advisory Services consulting market, Kennedy takes into account three primary factors: a volume coefficient, a value coefficient and a proprietary Transaction Advisory Services penetration factor. This penetration factor analysis includes variables such as the balance of types of buyers, the role of large- versus middle-market transactions, the general dispositions of buyers in particular industries or geographies toward consultants, and how competitive the "dealscape" is at a specific point in time. 

In taking into account companies' varied Transaction Advisory Services needs, both now and moving forward, "Transaction Advisory Services Consulting Marketplace" scrutinizes forward-thinking providers in both the mega-deal, mega-client market and the mid-size market. Kennedy reveals the strongest practices in "The Kennedy Vanguard of Transaction Advisory Services, 2009."

Among the practices assessed in Kennedy's two Transaction Advisory Services Vanguard are: ABeam Consulting, Accuracy, Alvarez & Marsal, Baker Tilly International, BDO International, CBIZ, Charles River Associates, Crowe Horwath International, Deloitte, Duff & Phelps, Ernst & Young, FTI Consulting, Grant Thornton International, Huron Consulting, KPMG, Oliver Wyman, Praxity, PricewaterhouseCoopers, Protiviti, Navigant Consulting, Nexia International, Resources Global Professionals, and RSM International.

About Kennedy Consulting Research & Advisory

Since 1970, Kennedy Consulting Research & Advisory has been the world's leading source of market analysis on the Management and IT consulting industries, serving the most highly regarded professional services firms and Fortune 500 companies across the globe.

Kennedy provides accurate and reliable market sizing and forecasts for consulting services worldwide; needs analysis and vendor profiling for buyers of consulting services; timely and insightful intelligence on the top consulting firms in their respective markets; and operational benchmarks that measure consulting performance. Kennedy Consulting Research & Advisory's research spans multiple service areas, client vertical industries, and geographies. 

Kennedy's stand-alone consulting advisory unit, Kennedy Information Advisors, provides results-oriented strategic guidance to buyers and sellers of consulting services.

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