Hi,

Will share my POV having worked in BCG's PIPE practice and also from conversations with clients/friends at other firms

Would the ways of working be different, if the practice is within the “management consulting” side or not? 

• The concern you raised is a valid one - but ultimately the client drives the requirements of the output alot. Which means if a PE client wants robust analytical thinking and they like your work, it means the practice area has the capabilities of doing it, even if it may sit under the FA umbrella
• The one big difference could potentially be ways of working - what I mean by this is in terms of access to expertise and knowledge across business units
  • If there is not alot of collaboration between business units, you may not have as much easy access to resources that can make your life/output better

Would joining such practice at Big 4 be a workable hopping board to MBB? I'm joining as a manager and plan to stay at least 3-5 years to develop my expertise in CDD and M&A-related strategy.

• It is definitely possible, when I was at BCG we often interviewed individuals from transaction / advisory at Big4
• Do note however that the bar and expectation for manager at MBB is significantly high and rarely do they let someone lateral straight in as a manager/principal, so you may have to take a tenure cut when you join

How are the big four's CDD works regarded vs. tier 1&2 consulting firms? Is there really a huge gap in terms of project fee, scope, and project quality?

• Project fee → yes there is a big difference. MBB is significantly more expensive
• Scope → depends on capabilities and expertise. Scope can vary especially if it may be a more complex DD that only some firms can do
• Project quality → From conversations with clients, generally, I would say you get what you pay for. MBB does command a higher premium and the expectations is that the quality of output is also higher

All the best!

Hi there, 

The WoW in the Due Diligence (CDD) practice within a Big 4 firm can vary depending on whether it falls under the "management consulting" side or the financial advisory side. Here some thoughts:

Nature of Work:

• On the consulting side, CDD may have a stronger focus on strategic aspects such as market analysis, forecasting, business model eval and assessment of value creation potential
• In the financial advisory side, CDD may lean more towards financial analysis, valuation, and transaction-related matters..

Client Engagement:

• Consulting CDD teams may engage with clients on a broader scale, working on strategic projects that involve multiple facets of the client's business.
• Financial advisory CDD teams often work closely with transaction teams and private equity clients, focusing on specific deals and transactions.

Skill Development:

• Both sides can offer valuable skills and experience. Management consulting may provide more exposure to strategic thinking and broader business issues, while financial advisory can provide in-depth financial and transaction expertise.

Regarding your second question, joining a CDD practice at a Big 4 firm is often a stepping stone to MBB. The experience you gain in evaluating companies, understanding market dynamics, and developing strategic recommendations can be highly relevant and transferable to MBB 

In terms of reputation - Tier 1 and top Tier 2's will have a significant edge. However, let me reemphasize that Big 4 can be good stepping stone, as their scope and type of work is highly relevant to the major strategy houses. Just recently had a coachee making exactly this transition.

Hope this helps.

Regards, Andi

• Doing CDD within financial advisory makes more sense, in my opinion. Means that you are better integrated with the people doing the financial due diligence or building the financial models (that take your information as input). I've done it and found it to be a richer learning experience. Also means people doing the CDD are likely to be more specialized and more analytical.
• If your plan is to jump to MBB, then you shoudnt be waiting. You should be trying right away. There's no benefit in postponing (quite the opposite, there's some risk).
• Scope and project quality is not different. MBB teams may have better access to industry insights or access to top notch specialists, but that's it. Fees will definitely be different, as well as deal sizes (MBB tend to work with larger funds). 
• Nevertheless Big4 tend to be regarded below MBB in terms of their prestige, even for CDD work. Of the Big 4, the best one for CDD is clearly EY-Parthenon (as Parthenon was a global boutique specialized in CDD + some good bolt-on acquisitions such as part of OC&C business, and being together with the financial advisory experts in my opinion gives them a competitive edge vs. any other firm, including MBB).

Hi there,

The best way to shortcircuit this question is to just go to the people who are doing this role in your target office. Have a chat with them and you can then understand specifically what sort of projects / work they do and how they are finding it. 

Here's a guide on how to conduct these discussions:

• Free Guide: How To Handle Networking Calls and Get Referrals

Best,

Cristian

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