Former Big Four consultants have collaborated to launch a new consulting firm. With $300 million in funding from Warburg Pincus, Unity Advisory aims to be leaner, conflict-free, and offer AI embedded performance-led models to clients.
Amid a tumultuous few years, the Big Four of Deloitte, PwC, EY and KPMG have been stung by a multitude of challenges, and spiralling costs. Having over-hired during a post-lockdown boom in demand, the quartet is currently engages in widespread layoffs, while reputational knocks have left some clients seeking alternatives.
Amid this, smaller, more agile firms have sensed blood in the water – and are attempting to cash in in areas where the Big Four previously had a dominant position. The latest of these is Unity Advisory – which has launched with a focus on tax, accounting, and M&A advisory services, with an emphasis on providing AI-driven solutions and innovative pricing models.
While the brand may be a new name, however, its founders are no strangers to the professional services sector. Steve Varley, the former UK chair of EY, has taken on the role of chairman, while Marissa Thomas, who previously served as COO at PwC but exited when she was passed over for its top job, will head the firm as CEO.
Both leaders bring decades of experience in global firms and are now targeting firms with revenues between £500 million and £1.5 billion, especially those backed by private equity. However, they will also be plying their trade in a distinct firm, which has set out to avoid the conflict of interest allegations plaguing the Big Four. While EY endured an international partner mutiny over plans to divorce its audit and advisory offerings, for example, Unity Advisory will not offer audit services from the very beginning.
Commenting on the firm’s founding, Varley said, “CFOs are open to a new proposition. The Big Four are a classy bunch of service providers, but people are looking for a proposition that is super client-centric, has really low administrative cost, is AI-led rather than based on legacy infrastructure and, crucially, has no conflicts.”
The boutique advisory firm will be backed by as much as $300 million from Warburg Pincus, the private equity group. This gives the company a significant war-chest to work with, as it looks to rapidly expand via organic means, and acquisitions. Unity will now work to hire staff with Big Four experience, including those who have left those firms for jobs in industry – and as the Big Four continues to trim its headcount, those firms may now have a rival when it comes to hanging on to their talent.
Reflecting this, Patrick Morgan founder and Managing Partner James O’Dowd, commented, “Seven months ago, I wrote about the growing risk for major firms, not just losing individuals, but entire teams forming new ventures that offer greater autonomy, better economics, and a clearer sense of ownership. Unity Advisory is a clear example of that and we are aware of many more to follow. For mid-market clients, especially those backed by private equity, these firms are compelling. No audit conflicts. Lower overheads. More flexible fee structures. And access to top-tier talent without the complexity of legacy structures.”