Big Four Exodus Fuels Growth at Rival Advisory Firms

Smaller advisory firms are gaining momentum as they attract talent from the Big Four and aim to dominate niche markets. This shift could disrupt the already struggling consulting industry.

Amid ongoing market uncertainty, FTI Consulting and Alvarez & Marsal are standing out by hiring dozens of former executives from Deloitte, EY, KPMG and PwC. This shakeup comes as consulting demand from governments and businesses declines, leading to a second consecutive year of shrinking Big Four partnerships.

FTI Consulting, active in Australia for more than 15 years, now has former Big Four partners filling over half of its senior managing director roles. The firm has added nearly 20 high-level professionals in just two years, including eight from KPMG and seven from PwC and its spin-off entities. Its most recent financial results show a 16% increase in profit compared to the previous year, reaching $131 million in 2024.

Alvarez & Marsal is growing even more quickly. Since 2023, over 40 of its 67 senior leaders have joined from Big Four firms. Although it reported just $20 million in revenue for 2023, the firm is now on track to generate as much as $150 million this financial year. This growth is being driven by a performance-based pay structure that rewards results.

The movement of this talent reflects more than simple reshuffling. FTI and Alvarez & Marsal do not offer audit or tax services, which gives their leaders more earning potential, smaller teams and greater sales freedom. While the traditional players are scaling back, these rising competitors appear to be redefining how growth is achieved in the professional services sector.

Source: Australian Financial Review, Alvarez & Marsal Press Release, Management Consulted

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