In today’s corporate world, there aren’t many adages that stand out, but “The Big 4” is one of them. These four businesses stand out among thousands of the largest consulting firms as the leading suppliers of professional and consulting services on a significant scale.
Former Big 8 accounting firms from the 1980s: Price Waterhouse, KPMG, Deloitte, Haskins & Sells, Arthur Andersen, Arthur Young & Co., Coopers & Lybrand, Ernst & Whinney, Ernst & Whinney, Deloitte, Haskins & Sells, and Arthur Young & Co.
As a result of the Enron and Worldcom scandals, mergers, acquisitions, and the dispersal of one of the industry giants, Arthur Andersen, the old 8 companies were reduced to 4.
The term “Big 4” is often used to refer to the top four accounting and auditing firms, PricewaterhouseCoopers, Deloitte, Ernst & Young, and KPMG. These companies are CPA firms that provide audits for the majority of enterprises.
The Big 4 also offers tax advice and special management services in addition to performing audits and other services. Each of the four companies operates in a number of different sectors, including those in the following areas: aerospace, automotive, banking, construction, hospitality, pharmaceuticals, transportation, wealth management, media, government and public sector, manufacturing, oil and energy, financial services, healthcare, insurance, professional services, retail, telecommunication, and many more.
The Big Four accounting and audit companies’ global revenue for 2020 is shown in the image below. It has been noted that Deloitte dominated the other top four accounting firms in 2020 by bringing in a total of roughly US$47.6 billion.
In addition, the total revenue generated by all the companies has been steadily rising over the past ten years, reaching 157 billion US dollars in 2020.
Klynveld is the initial of KPMG. In 1987, Klynveld Main Goerdeler (KMG) and Peat Marwick merged to form Peat Marwick Goerdeler.
Management consulting, risk consulting, and deal advisory are the three main focuses of KPMG’s consulting practise.
KPMG places a strong emphasis on technical and analytical work among the Big 4.
It employs about 219,000 experts who collaborate to provide excellent services in 154 different countries. It is a global network-thread of accounting firms that provides audit, tax, advisory, and industry-specific services. KPMG made $29.22 billion in US dollars in 2020.
Like other service providers, KPMG provides high-quality services and delivers significant value to its employees.
William Deloitte established Deloitte, commonly known as Deloitte Touche Tohmatsu, in 1845. It had gone through numerous mergers and reorganisations while maintaining its brand identity, which adheres to quality standards and provides company values.
It has developed into one of the top businesses worldwide.
Its consulting firm primarily focuses on three disciplines: technology, strategy & operations, and human capital. Strategy & Operations, the experience with the highest depth, comprises strategizing and solving challenging issues with the aid of outstanding administrators.
The technology focuses on finding solutions for helping clients respond to the significant changes in their businesses, improving productivity, and ensuring stable operations.
Human capital contributes to industry dialogue, analytics, and research & development for convergent customers on how to set up and run operations around all business branches. It generated $47.6 billion in revenue in 2020 and employed about 312,000 people across 150 nations, demonstrating an excellent spectrum of services.
Finance, Infrastructure Operations, M&A Restructuring, Supply Chain and Manufacturing Operations, Service Operations, and Strategy are the services that Deloitte focuses on the most.
Ernst & Young (EY)
In 1989, Ernst and Whinney and Arthur Young joined to establish Ernst and Young, with two goals in mind: first, using accounting knowledge and information for making informed business decisions; and second, hiring top talent while striking a careful balance between character and personal advantage.
Ernst & Young is a multinational conglomerate of member firms, each of which is a separate legal company, with operations in around 150 nations. These member firms primarily provide assurance, advising, tax, and advisory services. It works with people who possess both the professional abilities and the sincere, honourable, cooperative, enthusiastic, and motivated values that make up EY’s core values.
The company also values the growth of its workers’ knowledge and skills, assisting almost 284 000 of them in realising their full potential through specialist training and career development programmes.
EY Consulting works in and focuses on the industries of Education, Healthcare, Consumer and Industrial Products, Life Sciences, Oil and Gas, Information and Media, Technologies, Private Equity, and Financial Services. It made $37.2 billion USD in 2020.
PwC – PricewaterhouseCoopers
PwC was established in 1998 following the merger of Price Waterhouse and Coopers & Lybrand with the goal of providing valuable services while establishing and maintaining great client relationships.
And as part of a rebranding effort, the names of the merging organisations were shortened to PwC in September 2010.
With a reported $43.03 billion US in revenue in 2020, PwC is the second-largest audit firm in terms of revenue.
PwC focuses primarily on delivering superior assurance, consulting, and tax services. It operates and influences a sizable portion of the world advising business.
Although it has about 276,000 active employees in 158 nations, this company operates locally in many of those nations.
The significant values and standards contributed by these autonomous, recognised, and regulated firms are comparable to those of other multinational corporations.
Asset management, banking and capital markets, financial services, industrial products, insurance, power & utilities, private equity, public sector, retail & consumer, and technology are just a few of its intriguing offerings.
The term “Big 4” refers to the four biggest professional services companies in the world, KPMG, PwC, EY, and Deloitte. These companies offer a wide range of services, including audit, transaction advising, taxes, risk advisory, and actuarial services. The bulk of public and commercial businesses across the world are audited by The Big 4.
The following is a brief outline of the services offered by the Big 4 firms:
- Deloitte: financial advising, actuarial, and real estate services.
- KPMG: technology, financial advisory, and business consulting
- EY: Business models, valuations, corporate finance, and restructuring
- PwC: Technology, actuarial, legal vacation scheme, and deals.