Deloitte and EY have made a full-scale entry into the defense advisory market for countering activists. The four-quadrant map provides the first comparison of the capabilities of each group amid the expansion of the sector following the IR Japan scandal.
Demand is rising for advisers engaged in corporate defense as activist proposals to appoint and dismiss directors increase. The establishment of Deloitte Tohmatsu Equity Advisory (DTEA) and the expansion of EY’s strategic shareholder engagement support team have been particularly notable. IR Japan, which had previously held the leading position in the defense market, lost momentum following its scandal, and personnel outflows progressed.
Following IR Japan’s shocking incident, major consulting firms rapidly emerged as recipients of displaced demand. EY formed an organization centered on former employees in 2022 and expanded it to approximately 30 people. DTEA was established in 2024 and strengthened its talent base, expanding from an initial 3 people to 22 in 2.5 years. These moves emphasize the provision of core-business reforms that enable listed companies to raise their share prices.
There is discussion that the role of defense advisers could shift away from deal dependence, centered on increasing value through core-business reforms. As more cases emerge of companies increasing corporate value while maintaining their listings without engaging in deals, the four-quadrant map is being used to assess the capabilities of each group.