Deloitte set to shrink UK deals unit after profitability review
Consultancy firm Deloitte is set to downsize its UK deals unit following a profitability review.
The Big Four firm is planning to scale back its regional deals advisory business, citing sources familiar with the matter, the Financial Times reported.
The report added that Deloitte’s decision came after a profitability review for its deals advisory arm, spurred by the tough economic conditions.
Deloitte said in a statement: “We are considering restructuring parts of our advisory corporate finance business. This is in order to concentrate on larger, sector-focused M&A activity. As a consequence, we are proposing to close some parts of that business.”
It is understood that the firm will continue to do some M&A work, like due diligence, across all sectors.
The Big Four accountancy firms – Deloitte, EY, KPMG and PwC – announced some 1,800 job cuts last year as rising interest rates and economic jitters dampened the appetite for deals and companies cut back on spending for advice.
Latest data from PwC showed UK M&A fell 17 per cent last year compared to a global decline of six per cent.
Deloitte announced plans to make around 800 layoffs in 2023 – the most out of the four firms.
It is reportedly due to make further job cuts across its London and its regional offices, including in its City team advising financial services firms.