• Register
Return to: Home > News > Tax > BearingPoint buyout fuels Deloitte's US growth

BearingPoint buyout fuels Deloitte's US growth

Deloitte’s acquisition of BearingPoint’s North American public services practice has helped the firm report a revenue increase of 2% to $10.94bn in the year to 29 May 2010.

The firm’s powerful consulting business is now its major breadwinner, contributing $4.49bn in revenue, which is an $839m increase from the year before.

This is 41% of overall revenue and represents a huge increase from last year when consulting pulled in just over a third of business.

Deloitte’s audit and risk service line contributed $3.72bn, which is 34% of the overall revenue, while tax brought in $2.3 billion – both services suffering under current economic conditions.

Consulting is king

These results underline the growing importance of consulting services to the Big Four. Gone are the days when the largest accounting firms are audit heavy as there is now a preference to invest more in consulting, which is seen as a more profitable business.

The revenue contractions of Deloitte’s other core businesses follow trends reported elsewhere in the world; fee pressure and competition is squeezing the profitability out of audit while a general slowdown in M&A is affecting tax.

Deloitte increased the number of its employees by nearly 8% to 45,730 although this is due to the BearingPoint acquisition in 2009, which added 4,250 employees.

The other Big Four are yet to announce their annual results but it is unlikely they will grow as much as Deloitte if the firm’s audit and tax results are an indication.

Earlier this month, Deloitte announced its global revenue increased by 1.8 % to $26.6bn, momentarily inching ahead of rival PricewaterhouseCoopers.

 

Related articles

Deloitte’s global revenue increases

Top Content

    Time pressure: Facing up to mental health

    In an ‘always on’ culture, it is becoming increasingly difficult to manage a healthy work-life balance. While companies are beginning to address this problem by introducing different support systems, Joe Pickard finds more could be done to ensure the wellbeing of the professions workforce.

    read more

    Venezuela: the race for the dollar

    With a new currency following hyperinflation, large sections of the population emigrating to neighbouring countries, an economy on the brink of collapse and no apparent solution coming from the government, Jonathan Minter finds a profession struggling to stay afloat in Venezuela.

    read more

    Brazil: transparency and control

    Brazilian accountants have an optimistic view of the impact of more-regular reporting and the implications of audit controversies for the profession. Paul Golden reports.

    read more

    Argentina: looking for a clearer view

    The Argentine accounting profession continues to grapple with the impacts of a weak economy and a culture of financial corruption. Paul Golden takes a closer look.

    read more

    Blockchain: adapting to disruptive tech

    In the relatively few years since digital currencies first began using blockchain technology, the array of potential applications has grown significantly – and continues to expand. Dan Balla, Matthew Schell and Dave Uhryniak from Crowe look at how it impacts accountancy.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.