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EY Delays New Hires’ Start Dates Due to Lackluster Deal Environment

EY informed around 200 recent graduates hired for its Parthenon advisory division that their start dates have been postponed until mid-2025.

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Maybe Ernst & Young should have hired a consultant before making any promises.

The Big Four accounting firm informed around 200 recent graduates hired for its Parthenon advisory division that their start dates have been postponed until mid-2025, blaming a slowdown in M&A and private equity activity, the Financial Times reported.

Deal or No Deal

Delaying start dates isn’t new for EY — the company did it twice last year. But the current pushbacks, coupled with a reduction in internship slots for the upcoming summer, highlight ongoing uncertainties and revenue growth challenges within the consulting industry.

While the pandemic was a boon for professional services firms — due to increased demand for expertise in restructurings and buyouts — those days are long gone. EY, along with other major firms, is now adjusting to a downturn in demand for its services:

  • Year-to-date, M&A deals in the US have surpassed $1 trillion, up 20% from 2023, according to LSEG data reported by Axios. So far, so good.
  • However, in the third quarter, M&A deal values fell to $312.6 billion — a 15% drop year-over-year and the second consecutive quarter of YoY declines. So far, about 8,550 US deals have been announced this year, a 29% drop from 2023.

Plus, M&A activity typically slows during election seasons as CEOs await clarity on regulatory and economic changes that might follow.

The PE landscape is also mixed. Deal counts are down 4%, while deal values have increased by 10% year-to-date, law firm Ropes & Gray said in a post.

Pick Back Up Again: There is hope for a rebound in deal activity. The Federal Reserve has begun cutting interest rates, aiming for a range of 3.5%-3.75% by June of next year, which would lower borrowing costs, stimulate investment, and raise the need for professional services. 

As for those prospective EY hires, the firm is providing them with stipends before they join the rank-and-file: Amounts range from $12,000 to $35,000, depending on the workers’ original start date and highest level of education, the FT reported. Not a bad deal.