As demand for forensic accounting services continues to rise over the three years to 2018, services prices are forecast to maintain an upward trend.
Los Angeles, CA (PRWEB) March 20, 2015
Forensic accounting services have a buyer power score of 3.4 out of 5, which represents strong buying power and a favorable purchasing environment due to low market share concentration and low price volatility. “Buyer power is slightly restricted by steep switching costs, however,” says IBISWorld procurement analyst Ian Buchanan.
The forensic accounting service market contains a high number of suppliers and the top four service providers account for less than 30.0% of total market revenue, indicating a low market share concentration. Major players include Deloitte, PricewaterhouseCoopers, KPMG and Ernst & Young, which are known as the Big Four. Market share concentration remains low due to the few barriers to entry and minimal start-up costs, allowing new vendors to enter the market where there is demand. As a result, buyers have a range of vendors to choose from, which intensifies competition among service providers. “The high competition pressures suppliers to offer reduced rates to avoid being undercut by competitors, boosting buyer power,” adds Buchanan. “Although price growth has negatively affected price growth during the past three years, the low level of price volatility has presented buyers with a negligible risk of sudden price fluctuations.” As a result, buyers have been able to make more accurate cost estimations and budgets throughout the period.
However, if buyers wish to switch suppliers mid-contract, steep costs can be expected. Most suppliers require the buyer to pay a retainer fee when signing a contract. Retainers are typically paid upfront and are used to ensure the supplier's services when needed and are commonly nonrefundable. Depending on the supplier and the scope of the project, retainers can range from $500 to $15,000 or more. Consequently, when switching contracts, this nonrefundable fee becomes a steep sunk cost. Knowing that buyers will have a difficult time terminating a contract, suppliers have little incentive to renegotiate contracts and offer lower rates, hampering buyer power. For more information, visit IBISWorld’s Forensic Accounting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of forensic accounting services. Forensic accountants are hired to examine and investigate a company’s finances for issues, such as fraud or embezzlement. Suppliers of forensic accounting services provide an accounting analysis that can be used in court during legal disputes. Services can be procured from large multiline accounting firms or smaller specialized firms. This report excludes general accounting services.
- Executive Summary
- Pricing Environment
-- Price Fundamentals
-- Benchmark Price
-- Pricing Model
-- Price Drivers
-- Recent Price Trend
-- Price Forecast
- Product Characteristics
-- Product Life Cycle
-- Total Cost of Ownership
-- Product Specialization
-- Substitute Goods
-- Regulation
-- Quality Control
- Supply Chain & Vendors
-- Supply Chain Dynamics
-- Supply Chain Risk
-- Imports
-- Competitive Environment
-- Market Share Concentration
-- Market Profitability
-- Switching Costs
- Purchasing Process
-- Buying Basics
-- Buying Lead Time
-- Selection Process
-- Key RFP Elements
- Negotiation Questions
- Buyer Power Factors
- Key Statistics
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IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.