Demand for consulting increases - also among SMEs
Globalization and digitization are changing the environment of many organizations from the ground up. Not only multinational corporations, but also SMEs are affected. Increasingly complex cross-border requirements demand more consulting.
Many SMEs are clearly coming to terms with reality and seem to have little need for advice: According to Deloitte's "Private company global considerations for 2019" study, around three quarters of the companies surveyed are confident about their business prospects for the next 24 months. Most of them expect higher sales and earnings and higher productivity. And 49 percent expect to need to expand their workforce by several full-time positions. For this study, 2550 mid-sized companies were surveyed worldwide.
Many SMEs - many consulting service providers
So everything is under control? Yes, as long as nothing changes in the situation. But many companies also want more: they want to grow. And to do so, they need information and know-how. They often find this support from their trustees, lawyers, their bank, tax advisors or management consultants. In other words, SMEs turn to a different expert for almost every issue. As is well known, the market for consulting firms is correspondingly broad - naturally also a reflection of the diversity of SMEs.
From large to small enterprises
SMEs are also an increasingly interesting target group for large consulting firms. Switzerland in particular is a globally unique market for the private sector, writes Deloitte, for example. Many family businesses are based here, the country is traditionally rich in family offices and wealthy individuals, and the private equity segment is gaining in importance. With Deloitte Private, this globally active consulting and auditing firm is also launching its services for the private sector in Switzerland. "We are seeing an increasing demand from private companies for more support to address their biggest challenges: they are looking for new growth opportunities, they want to benefit from digitalization, ensure compliance with ever-changing, complex cross-border regulations, and protect themselves against risks such as cyber-attacks. Now more than ever, private companies need experienced advisors they can trust to play out globally integrated solutions locally across all disciplines," explains Karine Szegedi, Managing Partner of Deloitte Private in Switzerland. But why is Deloitte only now "discovering" the private company segment? Karine Szegedi continues: "With Deloitte Private, we have been active in other geographic markets for some time. In the last ten years, we have focused primarily on large companies. We've grown a lot in the meantime, and now we've reached a size that allows us to serve the segment of smaller and medium-sized companies as well."
Everything from one source
Deloitte Private becomes a single point of contact for companies. This is exactly what the decision-makers of family-owned or privately held companies want, according to the statement. Private companies would particularly benefit from Deloitte's local expertise in the areas of tax, mergers and acquisitions, business transformations, assurance and risk management. Deloitte intends to further expand its presence in the Swiss market.
"We want to offer an alternative"
Karine Szegedi leads Deloitte Private in Switzerland and in this capacity is also a member of the Executive Board of Deloitte Switzerland.
Ms. Szegedi, what makes the Swiss market special?
Karine Szegedi: There are many family-run companies in Switzerland, and some listed companies in Switzerland are also family-run. In addition, there is an interesting diversity of private banks and family offices in this country. This makes Switzerland very different from other countries in Europe. One example: Whereas in Belgium, for example, SMEs operate primarily locally, this is quite different in Switzerland. Many Swiss SMEs operate internationally, even globally. Their need for support from consultants with international know-how is correspondingly high. And that's where we can lend a hand, based on our experience with large companies.
How can experience with large companies be transferred to smaller ones? Those are different worlds after all ...
Not necessarily. Family businesses, for example, are more agile, but at the same time more cautious about change. They don't try out everything new right away. But overall, the topics are the same as those that interest large companies: Regulations, compliance, taxes, digitization, etc. What is different in each case is the contact person: In a family business, we often talk directly to the owner, who is also the CEO, whereas in listed companies, responsibilities and governance are distributed differently.
Many SMEs do well with advice from their fiduciaries. What added value can a consulting firm like Deloitte offer here?
Above all, we want to offer an alternative and not compete with existing offerings, such as those of private banks in asset management. However, we can offer added value there due to our expertise in compliance issues. We offer a wide range of services that can only be offered to a limited extent by other consultants or a fiduciary. Where specialized knowledge is required, which even we do not always have, we refer clients to the relevant experts in our network.
SMEs also value the personal relationship they have with their consultants. As a globally active consulting and auditing firm, how does Deloitte ensure that this is the case?
Our customers have a contact person who coordinates all further needs. He or she arranges contacts with experts on a wide range of topics. These specialists then report everything to the lead client manager.
Where or in which specialist areas do you see the greatest need for consulting among SMEs?
That's hard to generalize. A hot topic at the moment is cybercrime and everything to do with the management of cyber incidents and cyber risks. There are still many international companies interested in entering the Swiss market. We advise them on tax and legal issues, accounting and financial reporting regulations, etc., also in connection with M&A. Compliance is also a relatively large topic. Many companies and family offices need support here in order to be able to outsource the compliance area.
Example Accounting: What consulting services can Deloitte offer here?
Does it also take on fiduciary tasks? We do not offer accounting as such as a service, but of course everything to do with specific issues in accounting, auditing, assurance or company valuations.
Example succession planning: What services can an SME call on here?
Succession processes can be very complex. We offer support here in questions relating to taxes, governance and law - all with a view to long-term succession planning.
More information: Deloitte Private
