The financial advisory sector is valued at $67 billion, accounting for a quarter of the global advisory market. Unlike other sectors of the consulting industry, financial consulting performed relatively well during and after the crisis due to three main factors. Demand for crisis and recovery management rose sharply during the recession, followed by demand for audit and risk management, particularly in financial services. The M&A market has seen a strong recovery driven by economic recovery, increased demand for corporate finance and trading services. Together, these three services have offset (larger) declines in demand in other financial advisory sectors, leading to an upward trend for the financial consulting firms.
Traditionally, the financial advisory market has been dominated by companies with a tradition of tax and audit services, such as large accounting and consulting firms. However, in recent years, companies from other sectors such as strategy consultants, process experts, economic analysts and system integrators have developed steps into the financial consulting environment. Due to the diversity of financial advisory services, each sector typically has a relatively large and diverse group of participants, such as corporate finance boutiques, real estate professionals or risk management professionals.