Financial Advisory & Consultancy

What does a financial advisory consultant do?

Possession of specific financial competencies distinguish financial advisory experts from other consultants. There is also extreme differentiation within the segment, with corporate finance consultants, risk experts, and M&A advisors offering completely different services to clients. Depending on their branch of expertise, a financial advisory consultant might be hired by a CFO to put together a M&A deal, design an employee healthcare package, or help improve capital efficiency.

Despite occupying a specialized branch of the consulting industry, financial advisory services frequently overlap with other consulting segments. Financial consultants will work closely with their counterparts in HR or IT in devising compensation and benefits packages, or leveraging technology to optimize forensic services. Consultants in this segment will also find themselves engaging with the specialized investment bankers, lawyers, and accountants who manage unique aspects of compliance, M&A, and risk-based projects.

With an emphasis on expertise, financial consultants are hired to advise on a wide range of topics and concerns typically overseen by a client’s Chief Financial Officer (CFO). Consultants in the financial advisory segment are not financial analysts. Clients don’t hire financial consultants for insight into macro and micro-economic trends. Instead they are counted on to provide expert advice tailored to the client’s internal finance department.

Deep industry expertise in risk management, tax, real estate, transaction services, compliance, litigation, and other domains managed by a client’s CFO, are expected of consultancies in the financial advisory space. Financial advisory differs sharply from management, strategy and operations consulting in that it demands astute financial and accounting dexterity, rather than strategic vision, or problem solving and people skills.