Readers of this blog are certainly familiar with the Big Four and the Global Six, but there are a number of firm “alliances” that, while quite large and active, are perhaps not as well known. In particular, the member firms of Allinial Global, Baker Tilly, Leading Edge Alliance, Moore Stephens, and PrimeGlobal each audit a significant amount of public companies.1 So how do these associations stack up in market share?
Public Companies2
The Big Four leads the way in public company audits. Ernst & Young holds the largest share with almost 23% of the market. Leading Edge Alliance (LEA), following closely behind BDO and in front of Grant Thornton, has the largest share among the associations.
Registered Investment Advisers3
The Big Four also dominates the registered investment adviser market share. Allinial Global, LEA, and Moore Stephens each audit more RIAs than Grant Thornton or BDO.
ERISA Benefit Plans4
The ERISA market share analysis is an example of the aggregate strength these alliances create. Each of the five named associations, with a combined total of almost 68%, have majority control of the market share. LEA leads the pack, accounting for over 18%.
1. These five alliances (Limited to only the North American association members) include the most member firms doing public company audit work, aside from the BDO Alliance, which we excluded in order to treat BDO USA separately.↑
2. Population based on Audit Analytics data for 34 Act Filers as of March 17, 2017.↑
3. Includes RIAs with signature date after 1/1/16.↑
4. Includes ERISA opinions filed during 2015.↑