3 Benefits of Hiring a Boutique Firm for Your Financial Due Diligence

When it comes to financial due diligence, many companies default to the known giant accounting firms. Here are three (3) benefits of boutique financial due diligence firms that make them the simple, way better option.

1. Cost

Boutique firms can often offer similar quality services at a lower cost. It is that simple. At Finkelstein Financials, for instance, our pricing is set to be ultra-competitive while never settling on our innovative top-tier services.

Big accounting firms are known for their high fees, and their financial due diligence services are no exception. These fees are understandable if, and only if, the services being delivered achieve goals that otherwise cannot be achieved. Most of the time — that isn’t the case.

2. Quality

The Professional Liability Argument

The key to choosing a firm for due diligence is to evaluate the qualifications and track record of the financial due diligence firm. The interesting thing is that boutique firms, specializing in financial due diligence, have an immensely committed and cautious DNA, as they “only get one shot”, as Slim says.

In contrast, let me ask you this: what is common between the following accounting scandals: Enron, Lehman Brothers, AIG 2005 scandal, Wirecard, HaBank Lemischar, and Teva’s 2015 acquisitions?

You got it — they all retained giant cumbersome accounting firms.

Agility in Serving the Client

In addition to the professional liability issue, boutique firms have more flexibility and patience in adjusting to the client’s specific needs when the vision is correct. For instance, we at Finkelstein Financials are always thrilled to engage and inquire. Additions to the scope are always positively considered. As far as we’re concerned, that’s the exciting part of the inquiry journey.

On the other hand, try, for instance, to ask a huge accounting firm to visit the premises of the target company. Let’s say you wish a particular inquiry action to be made, such as inventory count, or you are simply trying to speed things up through face-to-face engagement. This ask will typically go poorly, we assure you. Giant accounting firms usually want to “template you out” while serving multiple clients a day.

3. Innovation

In today’s fast-changing tech environment, service providers must be agile and innovative to stay ahead. Boutique firms with a competitive vision are better positioned to leverage new technologies and approaches to provide better and more efficient financial due diligence services.

On the other hand, big accounting firms are often cumbersome. They are slower to adopt new technologies or approaches, as they have larger, more complex organizational structures that hinder innovation. As a matter of fact, when you think about the centralized market position of giant accounting firms, why would they even try to be innovative? What’s in it for them?

Conclusion

Boutique firms offer better quality services at a lower cost. The personalized approach — in transactions in particular — is critical. Boutique firms have greater flexibility in tailoring their services to each client’s needs. They are better at being more agile and innovative since they can leverage new technologies and approaches to provide better and more efficient financial due diligence services. The other side of the coin is that the default option – showcased by huge accounting firms’ services – should be reconsidered.

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