Deloitte Australia has boosted its corporate finance team ahead of an expected upturn in deals.
Deloitte Australia chief executive Giam Swiegers told AAP he saw a return to companies doing deals and was positioning Deloitte accordingly, and the firm could cherry pick the best talent from a candidate-rich labour market.
The corporate finance practice has been the chief beneficiary of new partner hires, with 22 new tax partners joining the practice from a total of 38 new partners hired across the firm in 2008/09.
"There will be more conservatism in deal making than we saw two years ago, so we continue to invest very heavily in corporate finance people because there is some great talent on the market right now," Mr Swiegers said.
He said the firm was more cautious toward new hires in the junior ranks because growth over the next 12 months was "so hard to predict".
"We'll be taking fewer graduates than last year. My guess would be somewhere in the mid 300s to 400."
Deloitte hired 500 new graduates during 2008/09.
The firm had "no idea" how many experienced recruits it will take on during 2009/10 despite a steady flow of experienced Australians returning home from stints in the northern hemisphere, and a spike in the number of South African applicants.
"One will have to see how the economy works," South African-born Mr Swiegers said.
Revenue at the global consulting firm's Australian arm grew by 11 per cent to $854 million for 12 months to May 31, but the pace of revenue growth slowed to 14 per cent in its fiscal 2008/09, down from 25 per cent the previous year, as the economic slowdown took hold.
Deloitte does not disclose its profitability.
Mr Swiegers said the unlisted firm held costs steady without slashing its headcount and that lifting fees was not an option in the current economic climate.
"I think this is a case of more work rather than higher fees," he said.
"In this market one could never have raised fees," Mr Swiegers said in an interview on Thursday.
Demand from clients in the mining, resources, government and financial services sectors underpinned revenue in 2008/09.
The firm's operational consulting practice recorded a 24 per cent jump in revenue as clients looked to cut costs.
"In the financial services sector they really had to have a very careful look at their operational and technology costs," Mr Swiegers said.
"We are seeing companies that are very focused on strengthening their performance, and therefore any operational consulting is in demand if you can prove that you get the results very quickly."
Deloitte's corporate reorganisation practice reported a revenue surge of 49 per cent because of a rise in insolvencies and company failures.
The company said its forensic accounting practice was now the largest cross the Asia Pacific, thanks to more litigation and fraud activity.
Mr Swiegers predicts the next few months to be tough for the Australian economy, but said confidence was returning among business leaders.
"I reckon in two or three years' time when the rich lists are published there are going to be some very interesting changes in those lists because people were capable of making the most of these times."
© 2009 AAP
