EY Service Lines - Transaction Advisory
EY's Transaction Advisory service line provides clients with expert advice on transactions, including mergers and acquisitions, market expansion, capital management, and others. This service line accounted for $4.1 billion or 11.3% of the total revenue EY recorded in 2019.
Unique Features and Functions
- Basically, EY's Transaction Advisory Service (TAS) involves the provision of insightful, business advice to clients — on how and when to buy, sell or merge drive growth and profit, and to gain a competitive edge. The service line helps clients who want to achieve market expansion, seize M&A opportunities or manage their capitals to achieve growth.
- In a dynamic, digital, and innovative/disruptive business ecosystem, "EY's TAS supports the flow of capital across borders, help bring new products and innovation to market, and enable organizations to reshape themselves for a better future."
- The Transaction Advisory service line is responsible for solving the business issues by carrying out any of the following functions: corporate finance strategy, mergers and acquisitions, valuation and business modeling, operational transaction services, and transaction support.
- EY's TAS professionals "work in diverse, globally integrated teams to solve business-critical issues" by navigating, assessing and balancing risks against potential rewards. More so, during the last year, "TAS shifted its focus from individual services offerings to five integrated Connected Capital Solutions (CCS) — strategy realized, buy and integrate, sell and separate, reshaping results, and corporate finance."
Overall Revenue Contribution
- EY's Transaction Advisory service line contributed $4.1 billion to the $36.4 billion it generated in 2019. This is a 15.5% year-on-year increase.
- The $4.1 billion generated, is about 11.3% of the total revenue EY recorded in 2019 (i.e., $4.1 billion / $36.4 billion * 100).
- TAS recorded the highest revenue growth (15.5%) of all the service lines. This suggests high levels of competency and capabilities of the service line.
- EY's TAS includes efficient, integrated solutions, especially the Connected Capital Solutions, "which played a big role in propelling EY teams to advise on six of the top 10 deals globally in the 2019 fiscal year."
- The expertise, experience, and processes of the transaction advisory and consultants help clients to explore and leverage the use of artificial intelligence (AI) — as a means towards the enhancement of investment decision-making — and "the potential of robotics process automation (RPA) to reduce the burden and cost of administrative tasks."
- EY reveals to have a vast knowledge of technology and the wealth and asset management industry, which it is known to leverage to provide proven approaches and strategies to clients.
Clientele and Relevant Project Case Studies
- Generally, while there isn't specific information on the clients of EY's TAS, some of its largest audit clients include 3I Group, International Consolidated Airlines, Amazon, Facebook, among others.
- To reduce risk and to drive growth through innovation, EY helped an investment manager implement a major technology-driven transformation.
- "The company needed a replacement for its core investment platform across all asset classes." EY's TAS team employed a holistic approach, factoring in all elements of the investment management operating model, including data, people, processes and governance.
- EY switched the company's system architecture to a new platform that offers "an opportunity to create a single consolidated global view across all asset classes."
To address the request, the research team dove deep into company reports providing the requested insights into EY's Transaction Advisory service line. However, while there is information on the features, functions, perceived strength, and revenue contribution of TAS, the requested information on the clients for the service line was not available. Moreover, there isn't much information on the clients of EY in general. We also shifted to search through other industry and media sources where we could identify some of its largest clients; however, these are clients who EY provide only audit services for. As an alternative, we sought for case studies of EY providing transaction advisory services to clients but found no direct case study, as available case studies only loosely suggest the deployment of TAS. Furthermore, the names of the client were never mentioned in any of these case studies. Nonetheless, we provided a case study, along with other available insights that portray the kind of projects EY carries out through what appears to be the Transaction Advisory service line.