Management advisory services definition
/What are Management Advisory Services?
Management advisory services are consulting services performed by a specialist organization for its clients. These services are intended to provide advice regarding the operations and finances of clients. The services may address any of the following areas:
Asset valuation. This involves analyses of client assets to derive asset values using several different methods. This service is useful for fair value analyses, determining the appropriate size of insurance coverage, acquisition valuations, and so forth.
Business strategy. This involves a review of the competitive situation of a business, given its market positioning and product line, along with recommendations for how to improve that position.
Computer systems. This can involve several areas, including analyses of existing systems, searches for new systems, and system installations.
Litigation support. This involves the provision of services to a client that is involved in a lawsuit, perhaps involving expert testimony or financial analysis.
Mergers and acquisitions. This can involve several areas, including due diligence on acquisition targets, and assisting with the integration of the operations of an acquired entity into those of the acquirer.
Organizational structure. This involves analyzing how a business is organized, and making recommendations to improve decision making and how responsibility and authority are shared.
Process analysis. This involves a detailed analysis of selected client processes, producing recommendations for more streamlined processes and/or the need for additional controls.
Risk management. This involves an analysis of the risks to which a client is subjected, and how they can be mitigated by implementing various recommendations.
A CPA firm may provide management advisory services if this group is separated from the auditing and tax functions.