EY Service Lines - Details

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Part
01

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

Strengths

  • 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."

Research Strategy

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.
Part
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Part
02

EY Service Lines - Advisory

EY's Advisory service line involves the provision of expert, data-driven advice that drives digital transformation across aspects including customer experience and risk management. The segment accounted for $10.2 billion or 28% of the total revenue the company recorded in 2019. Velon and Royal Caribbean are some clients that EY has served through its Advisory service line.

Unique Features and Functions

  • "In Advisory, EY professionals work with clients to deliver enterprise transformation — helping them to innovate, grow, optimize and protect their businesses, ready for the now, next and beyond."
  • It also provides advice on customer experience and engagement, risk transformation, IoT consulting services, blockchain consulting services, finance consulting services, supply chain management, among others. It helps solve complex industry barriers in a business world where disruption and technological dynamics are becoming mainstream.
  • To tackle this disruption through its Advisory service line, EY created a new approach called 'Trust by Design' — "to elevate risk management from a responsive function to a proactive tool for strategic decision-making."
  • The operations of this service line involve the provision of what it takes to succeed in the transformative age by being more innovative, agile, collaborative, and adopting more behaviors.
  • Its Advisory service line functions aggregates to the service line's sub-sector: actuarial services, financial services risk, IT risk and assurance (ITRA), and performance improvement. These functions range from helping clients with their operational and strategic challenges and efforts, helping them respond to new regulations and risk expectations to helping clients deliver sustainable improvements.

Overall Revenue Contribution

Strengths

  • EY's TSA provides flexible frameworks and platforms that enable clients, such as asset managers, that do not have data lakes to leverage EY's analytic services. These services grant quicker access "to analytics platform and managed service without barriers to entry such as investment costs and access to skills."
  • "The business and risk, technology and people advisory services have continuously invested in strategic growth drivers — transformation design, customer, cybersecurity, data and technology, financial audit IT (FAIT) and workforce advisory — to help organizations to reimagine their futures, without compromising the present."
  • The Advisory service line experienced a significant 12.8% year-on-year growth, which portrays the strength and performance of the segment.

Clientele and Relevant Project Case Studies

Velon

  • Velon wanted to improve the dysfunctional economics of the professional cycling competition it organizes, due to poor engagement and viewership. Also, since it has access to large amounts of data from cyclists and teams, it needed a way to transmit thousands of data points per second out of a live sporting event.
  • To tackle this problem, EY created and deployed an IoT solution that could collect and harness the vast amounts of these data, transforming them into interactive, visualizing data highlights and stories. This positions viewers at the center of the race and offers them robust insights into their favorite cyclists and teams through a dedicated app.

Royal Caribbean

  • Royal Caribbean wanted to redesign its customer journey to bring the guest experience into the transformative age. "It wanted to offer guests a fully integrated shore-to-ship digital experience."
  • EY came on board and found that they needed to transform Royal Caribbean's analog processes to digital ones — first, "by thinking about digital from every angle throughout the company’s entire business."
  • EY then leveraged data and analytics to create a personalization system that gives guests mobile control over the majority of touchpoints in their cruising experience.
  • EY also created an uninterrupted digital experience and an integrated automation that reimagines Royal Caribean's business model and delivers experiences on-demand.

Leading UK Asset Manager

  • In another case study, "EY helped a leading UK asset manager develop and implement a cloud-based analytics platform, as part of its drive to become a first-in-class digital asset manager." The company wanted agile and efficient ways it can manage and govern its data.
  • EY achieved this by implementing a data-driven operating model and data set linked to the business value chain. "This service/model provides day-to-day data management and analytical services, performs quality checks on feeds and data records, and gives the company access to new capabilities including advanced visualizations, machine learning and artificial intelligence."

Research Strategy

To address the request, the research team dove deep into company reports providing the requested insights into EY's Advisory service line. However, while there is information on the features, functions, perceived strength, and revenue contribution of the Advisory service line, 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. Therefore, as an alternative, we sought for and provided case studies of EY providing advisory services to clients.
Part
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Part
03

EY Service Lines - Parthenon

Acquired by EY in 2014 under its Transaction Advisory service line, EY-Parthenon is a brand of EY that offers strategic consultancy to clients. The brand contributes about 2% of the service line's revenue and about 0.22% of EY's total revenue. While there is no information on the names of its clients, the brand serves many Global 1000 corporations.

Unique Features and Functions

  • EY-Parthenon is a brand that operates under EY's TAS service line. It offers strategic consultancy services to clients and is focused on providing unconventional and pragmatic analysis/methods to deliver high impact and actionable strategies in today’s complex business environment.
  • EY-Parthenon helps clients to optimize key functions and to offer perspectives on growth and transaction strategies through its TAS operations.
  • Its services cut across various practices including consumer products, diversified industrial products, education, financial services, healthcare, private equity, oil and gas, technology, among others.
  • Functionally, EY-Parthenon provides value to clients through three avenues: (i) advice clients on strategic opportunities through market research and analysis; (ii) help clients in the implementation of strategic plans by leveraging its expertise across its perspectives; and (iii) provide proprietary analysis and actionable insights/advice.
  • These functions aggregate into four solutions: transaction evaluation, value optimization, corporate strategy, and investment strategy.

Overall Revenue Contribution

  • EY hasn't disclosed the revenue contribution of Parthenon; however, according to Money Inc., EY-Parthenon has $80 million in revenue.
  • Since EY-Parthenon operates under EY's Transaction Advisory service line (TAS), it contributes about 2% of the $4.1 billion recorded by TAS (i.e., $80 million * 100 / $4.1 billion).
  • Furthermore, with respect to the revenue of $36.4 billion EY recorded, Parthenon accounted for about 0.22% (i.e., $80 million * 100 / $36.4 billion).

Strengths

  • EY-Parthenon can provide custom strategies that are tailored to suit specific situations of each client," offering them an extensive business experience with proven analytical techniques that lead to high-impact and actionable insights."
  • EY-Parthenon has received various recognition from Vault for their consulting services as one of the Best Consulting Firms for exit opportunities and travel requirements. It was also named in the top 10 of Vault's Top 50 Consulting Firms in North America for 2018 for its great culture, people, trademark boutique culture, and focus.
  • EY-Parthenon enjoys a large market presence, with offices in over 24 countries across the world.
  • While it provides strategic consultancy at its core, EY-Parthenon provides its expertise to many industries, such as consumer products, oil and gas, healthcare, financial services, among others.

Clientele and Relevant Project Case Studies

Full Potential Paradigm (FPP)

  • As one of its numerous solutions, EY-Parthenon deploys its proprietary Full Potential Paradigm (FPP), which is a diagnostic construct, to help clients set their targets and strategy.
  • EY works with clients to gather public data, company data, and primary research for the aim of building up and developing analyses and suggestions that business owners/leaders can leverage to set up targets and trial potential avenues before establishing their strategies.
  • "Through the evaluation of market context and the identification of 'three gaps' — performance gap, opportunity gap, and perception gap, FPP presents an objective, quantitative analysis of businesses and derives actionable insights that businesses can start implementing immediately to help them reach their full potential."

Robotic Process Automation

  • A large public higher-education and healthcare organization in the US was curious about the potential advantages of robotic process automation across its system. "This organization enlisted EY-Parthenon to develop a set of RPA test pilots with the potential for system-wide impact."
  • EY-Parthenon mostly focused on the back-office functions of this institution to deliver promising results across cash control, HR position, and department. Some of these results include the reduction of monthly manual processing hours from 100 hours to 2 hours in cash control processes, 25 hours to 5 hours in HR position numbers, and 960 hours to 309 hours in the review and validation processes of departments.

Research Strategy

Our research did not directly yield the revenue contribution of EY-Parthenon, as it is not a reportable segment/service line, according to data provided in EY's 2019 annual report. Its reportable service lines are Assurance, Advisory, Tax, and Transaction Advisory Services (TAS). Further research into EY-Parthenon revealed that EY acquired Parthenon in 2014 and while EY incorporated it into its Transaction Advisory service line (TAS), it allowed Parthenon to operate using its brand (Parthenon) and leadership. Moreover, EY recognizes Parthenon as a brand of its own. Hence, we provided its revenue contribution to TAS and the company in general.

Lastly, the requested information on the clients of EY-Parthenon 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 that enlist EY only for their audit needs. Therefore, as an alternative, we sought and provided case studies of EY-Parthenon providing consulting services to clients, along with other details that give insights into the type of clients it serves and the type of projects it does. Note that while there are several case studies, the names of the clients were never mentioned in any of them.
Part
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Part
04

EY Competitors - McKinsey, BCG, and Bain & Co.

Similar to EY, the Big Three firms — McKinsey, BCG, and Bain & Co, recorded strong revenue growth in the recent fiscal years. These are majorly consulting firms, with over 10,000 employees, that serve a wide array of industries. Below, is an overview of their revenue figures, industry and clients served, and their total number of employees.

EY

Revenue and Share of Service Lines

  • In the 2019 fiscal year, EY generated $36.4 billion in revenue, growing by 8% from the 2018 fiscal year globally.
  • In terms of the share of each service line to the total revenue (i.e., service line revenue * 100 / total revenue), the Assurance service line accounted for 34.6%, 28% for the Advisory service line, 26.1% for the Tax service line, and 11.3% for the TAS service line.

Industry Segments and Clients Served

  • EY provides its services across three core industry segments. They are banking and capital markets, insurance, and wealth and asset management.
  • Other industries or sub-sectors it serves include energy, advanced manufacturing and mobility, consumer, smart infrastructure, among others.
  • EY serves various customers across multiple industries. It serves 23% and 61% audit and non-audit clients in the Fortune Global 500 list of companies, respectively. Also, it serves 27% and 45% audit and non-audit clients in the Forbes Global 2000 list of companies, respectively.

Total Number of Employees

  • Of this number, there are 94,220 employees in the Assurance service line, 67,447 employees in the Advisory service line, 59,577 employees in the Tax service line, 17,461 employees in the TAS service line, and 45,283 practice support employees.

McKinsey

Revenue and Service Lines

  • According to Craft.co and Forbes, McKinsey has a revenue of $10.5 billion in 2019, a 5% increase from the $10 billion it recorded in 2018.
  • While there are no explicit indications of its service lines, McKinsey operates 12 business functions or functional groups through which "they offer clients the expertise and capabilities they need to achieve the best practice and define next practice to boost their performance for the long term."
  • They are design, McKinsey digital, implementation, learning programs for clients, marketing and sales, McKinsey analytics, operations, organization, risk, strategy and corporate finance, sustainability, and transformation.

Industry Segments and Clients Served

  • McKinsey serves across 21 core industries including advanced electronics, agriculture, chemicals, consumer packaged goods, metals and mining, public sector, retail, social sector, semiconductors, among others.
  • "McKinsey has advised many of the Fortune 500 companies in the United States and top corporations in other countries. Its list of clients includes General Motors, PepsiCo, Ford Motor Company, and American Express. "
  • According to revelations made by the Democratic presidential candidate, Pete Buttigieg, some of McKinsey's clients are Blue Cross Blue Shield of Michigan, the Canadian supermarket chain — Loblaws, Best Buy, the Natural Resources Defense Council, the Environmental Protection Agency, the Department of Energy, the Energy Foundation, the US Postal Service, and the US Department of Defense.

Total Number of Employees


BCG

Revenue and Share of Service Lines

  • BCG has $7.5 billion in revenue, "with underlying revenue growth reaching 19%."
  • While there are no disclosures of all its service lines, press announcements of its financial statements in 2019 show that digital offerings, as well as analytics and data science advisory, maybe some of its service lines.
  • BCG has multiple capabilities or functions such as big data and advanced analytics, globalization, innovation and product development, marketing and sales, M&A and divestitures, technology and digital, procurement, among others. However, reports reveal that "its areas of expertise include branding, corporate development, deconstruction, globalization, organization, pricing, strategy, and technology and communications. "

Industry Segments and Clients Served

  • BCG operates in over 20 industries including automotive and mobility, financial institution, medical devices and technology, oil and gas, public sector, transportation, travel and tourism, among others.
  • "BCG partners with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises."
  • Many of BCG's clients rank among the largest 500 corporations but it also advises mid-sized companies government agencies and organizations.

Total Number of Employees


Bain & Co

Revenue and Share of Service Lines

  • According to Craft.co and Forbes, Bain & Co generated an estimated $4.3 billion in revenue in 2019, a 26% increase from the estimated $3.4 billion it generated in 2018. Consulting.US also provides that Bain & Co generated approximately $3.8 billion in 2018.
  • While the company's service lines are not available, consulting services and digital delivery (Vector) appear to be at the core of its operations.

Industry Segments and Clients Served

  • Bain & Co operates across a wide array of industries, including advanced manufacturing and services, agribusiness, energy and natural services, machinery and equipment, media, private equity, utilities and renewables, among others.
  • "Bain & Co has worked with more than two-thirds of the Global 500, thousands of regional and local organizations, hundreds of non-profits, governments and private equity funds representing 75% of global equity capital."
  • Also, "Bain & Co is known to have worked with such prestigious names as De Beers, Dell, Ford, Charles Schwab, Starbucks, Del Monte, KIPP and Bill & Melinda Gates Foundation."

Total Number of Employees

Research Strategy

To address this request, we leveraged information from company websites, other reputable company databases, and media platforms (such as Forbes, Craft.co, and Vault) to provide the revenue details, industries served and the employee count of McKinsey, BCG, and Bain & Co. However, specific information on their service lines and the total number of clients they serve isn't publicly available, as such salient data are only provided in annual statements of companies, of which none was published by any of these companies. Research into other company databases, industry sources, and press articles yielded no information. Nevertheless, we provided useful insights into the companies' capabilities and functions, expertise, category of clients they deal with (including for EY), and some notable clients.
Part
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Part
05

EY Competitors - Deloitte, PWC, and KPMG

The Big Four accounting firms — Deloitte, EY, PwC, and KPMG — continued with their strong business performance, both financially and recruitment-wise. These companies experienced positive growth as they generate more revenue from their service lines, which largely revolves around, audit, tax and legal, advisory, and consulting. Below, is an overview of their revenue figures, industry and clients served, and their total number of employees.

EY

Revenue and Share of Service Lines

  • In the 2019 fiscal year, EY generated $36.4 billion in revenue, growing by 8% from the 2018 fiscal year globally.
  • EY operates and reports four service lines and each service line generated the following: Assurance — $12.6 billion, Advisory — $10.2 billion, Tax — $9.5 billion, and Transaction Advisory Services (TAS) — $4.1 billion.
  • In terms of the share of each service line to the total revenue (i.e., service line revenue * 100 / total revenue), the Assurance service line accounted for 34.6%, 28% for the Advisory service line, 26.1% for the Tax service line, and 11.3% for the TAS service line.

Industry Segments and Clients Served

  • EY provides its services across three core industry segments.
  • They are banking and capital markets, insurance, and wealth and asset management.
  • Other industries or sub-sectors it serves include energy, advanced manufacturing and mobility, consumer, smart infrastructure, among others.
  • EY serves various customers across multiple industries. It serves 23% and 61% audit and non-audit clients in the Fortune Global 500 list of companies, respectively.
  • Also, it serves 27% and 45% audit and non-audit clients in the Forbes Global 2000 list of companies, respectively.
  • Some of its largest clients include HP, Verizon, Walmart, among others.

Total Number of Employees


Deloitte

Revenue and Share of Service Lines

  • Globally, Deloitte generated record revenue of $46.2 billion in the fiscal year 2019, a slight increase from the $43.2 billion it saw in the fiscal year 2018.
  • Deloitte operates and reports five service lines: Financial Advisory — which contributed $3.8 billion, Consulting — which accounted for $18.7 billion, Audit and Assurance — which accounted for $10.2 billion, Tax and Legal — which yielded $8.3 billion, and Risk Advisory — which accounted for $5.3 billion.
  • In terms of the share of each service line to the total revenue (i.e., service line revenue * 100 / total revenue), Financial Advisory contributed 8.2%, Consulting contributed 40.5%, Audit and Assurance contributed 22.1%, Tax and Legal contributed 18%, and Risk Advisory contributed 11.5%.

Industry Segments and Clients Served

  • Deloitte serves six core industries. They are consumer; energy, resources and industrials; financial services; government and public services; life sciences and healthcare; and technology, media, and telecommunications.
  • Under these industries, other sub-sectors include automotive, industrial products and construction, banking and capital markets, civil government, life sciences, technology, among others.
  • Deloitte serves four out of five Fortune Global 500® companies.
  • Some of its largest clients include Microsoft, Morgan Stanley, Boeing, Starbucks, NASA, among others.

Total Number of Employees

  • In the 2019 fiscal year, Deloitte had 312,000 employees in 150 countries and territories.
  • This was a 9% increase from the 286,000 employees it had in the 2018 fiscal year.

PwC

Revenue and Share of Service Lines

  • PwC generated $42.4 billion in the 2019 fiscal year, globally. This was a 7% rise in the $40.7 billion it generated in the 2018 fiscal year.
  • The company reports three service lines and they are Assurance, Advisory, and Tax and Legal.
  • Its Assurance operations grew by 5% while contributing $17.4 billion, its Advisory operations grew by 10% to $14.4 billion, while its Tax and Legal segment accounted for $10.7 billion with a 6% increment from the previous fiscal year.
  • In terms of the share of each service line to the total revenue (i.e., service line revenue * 100 / total revenue), PwC's Assurance, Advisory, and Tax and Legal operations each contributed 41%, 33.9%, and 25.2% respectively.

Industry Segments and Clients Served

  • PwC serves 425 Fortune Global 500 companies. In the 2018 fiscal year, it served 429 of such companies.
  • PwC operates across multiple industries including aerospace and defense, government and public service, telecommunications, consumer markets, healthcare, media, transportation logistics, among others.
  • In the last fiscal year (2018), "PwC served 200,000 clients, including more than 100,000 entrepreneurial and private businesses."
  • The company serves 85% of the companies in the Fortune Global 500 list, 93% of the companies in the S&P Europe 350 list, 86% of the companies in the US Fortune 500 list, 78% of the companies in the S&P Asia 50 list, and 80% of the companies in the S&P Latin America 40 list.

Total Number of Employees


KPMG

Revenue and Share of Service Lines

  • KPMG recorded a global revenue of $29.75 billion in the 2019 fiscal year, which was a 6.2% growth from the previous fiscal year.
  • Of the total revenue, its Audit service line accounted for $11.18 billion, the Tax and Legal service line accounted for $6.62 billion, while the Advisory service line contributed $11.95 billion.
  • In terms of the share of each service line to the total revenue (i.e., service line revenue * 100 / total revenue), the Audit service line accounted for 37.5%, the Tax and Legal service line accounted for 22.3%, while the Advisory service line contributed 40.2%.

Industry Segments and Client Served

  • "KPMG can provide an informed perspective on issues faced by the global business community" across multiple industries including asset management, automotive, banking and finance, consumer and retail, energy, life sciences, among others.
  • Some top industries based on revenue are financial services ($9.1 billion), industrial markets ($7.12 billion), consumer markets ($3.27 billion), among others.
  • Some of the largest audit clients of KPMG include Accenture, Halliburton, General Electric, Citigroup, Wells Fargo, among others.

Total Number of Employees

Research Strategy

While we could leverage the annual reports of these companies to provide all the requested information, we could not find any exact data on the number of clients they serve, except for PwC. These companies (EY, Deloitte, and KPMG) do not publish this data; nonetheless, we could provide other useful insights into their client base, such as the kind of clients they serve and the share of those kinds of clients. We also provided some of their largest clients as available.
Sources
Sources