While the member firms that make up KPMG International might be
independent of one another, their businesses are organized around
three service lines: audit, tax and advisory. And, within those
service lines, the offerings from country to country are likely to
be pretty consistent, too.
Indeed, KPMG advisory services are organized into three groups
that address distinct client issues: management
consulting-including performance and technology- transactions and
restructuring, and risk and compliance.
KPMG's roots date back to 1870, when accountant William Barclay
Peat hung out his shingle in London. In 1911, his firm merged with
New York-based Marwick Mitchell & Co., forming a business that
later became known as Peat Marwick. Meanwhile, in Scotland, Glasgow
accountancy Thomson McLintock partnered with Dutch and German
accounting firms to create Klynveld Main Goerdeler (KMG), an
alliance of independent practices operating throughout Europe.
The 1987 tie-up between KMG Main Hurdman and Peat Marwick
Mitchell & Co. was considered the first megamerger of modern
accounting, and the resulting entity, eventually named KPMG,
organized its consulting activities into a separate business unit
in 1997. Three years later, KPMG spun off KPMG Consulting with an
initial public offering. The now-separate consulting business took
over KPMG's consulting work for several companies, eventually
changing its name to BearingPoint in October 2002. The bulk of
BearingPoint's assets are now owned by Deloitte, which purchased
them after the company filed for bankruptcy protection early in
As part of the spin-off that created BearingPoint, KPMG signed a
non-compete agreement with its former consulting arm, which limited
KPMG's ability to provide certain types of services. Following the
spin-off, KPMG continued to provide advisory services, but any
limitations on its ability to provide a full range of services
ended when the non-compete agreement expired in 2006. Today, KPMG's
advisory practice generates more than one-third of the company's
overall revenue in the U.S.
Within its suite of management consulting services, the firm
currently has fourteen service lines for clients-some of which have
been recently added to reflect changing business priorities in the
digital age: analytics; business integration; business
intelligence; business process management; change management;
growth enablement; integrated business planning; organizational
design; outsourcing; shared services; strategy and operations;
talent management; technology enablement; and transformation.
On the risk management side, meanwhile, the firm's service lines
are: financial risk management; forensic; internal audit; risk and
compliance services; and IT advisory.