The Takeaway: A Q&A With Dave Buscaglia and Elena Stratigakes on What’s Driving the Specialty Consulting Market

What are the significant trends currently driving demand and M&A activity within specialty consulting and risk services?

ES: As AI floods the narrative across industries, business leaders need trusted advisors more than ever. Having AI at our disposal means more options to contemplate, and who better to do that alongside than a human expert? Specialty consulting firms provide counsel for leaders making critical decisions; AI has simply not replaced that human connection, and the investor community is realizing that as well.

DB: To add to Elena’s point, another key driver across the specialty consulting continuum is the demand for data-driven results. Clients are not just hiring trusted advisors for high-level qualitative counsel; they want to know what impactful operational maneuvers and strategic changes can be made. Crucially, they expect measurable, data-backed outcomes that demonstrate concrete success and return on their investment.

How has the rapid evolution of technology like AI and data analytics changed the way risk and consulting firms operate and deliver value to clients?

DB: While this technology is relatively new, the early headlines suggested AI would completely disrupt consulting, compliance, and existing business models. However, the market has moved past that initial reaction. Today, technology is viewed as a powerful enabler driving better service, faster turnaround times, greater accuracy, and the ability to do more with less. Specialty consulting firms are actively leaning into AI and analytics to optimize internal workflows and deliver superior, cost-effective outcomes for clients, which remains the ultimate objective.

ES: In addition, organizational and business unit leaders face growing stakeholder demands for greater transparency, rigorous data, and objective credibility in their decision-making. Specialty consulting firms are diving deep into data and analytics to provide those empirical proof points rather than relying solely on traditional advisory methods.

Many corporate leaders have publicly committed to implementing AI and achieving a measurable ROI on technology investments, yet many lack the internal expertise to execute. Specialty consulting firms are responding by expanding their service offerings to help clients deliver on these promises. This goes beyond using AI to enhance internal delivery; it involves creating dedicated client engagements—such as operationalizing a manufacturing facility with AI—enabling executives to demonstrate tangible progress to their stakeholders.

What are the regulatory or economic hurdles that clients are concerned about this year, and how are the top firms adapting?

ES: A major challenge clients must navigate is fulfilling commitments to integrate technology, AI, and data analytics into their operating models without a clear roadmap for execution. Because this landscape is evolving so quickly, organizations often lack the specialized knowledge required to implement these tools effectively.

This is where specialty consulting firms excel. Working with niche experts who possess deep end-market knowledge allows firms to develop targeted, practical solutions.

DB: It is important to remember that consultants serve as outsourced professional advisors. A business focused on quick-service restaurants, for example, specializes in foodservice, not AI. Forward-thinking companies recognize the boundaries of their internal capabilities and proactively seek outside expertise. They turn to specialty consultants who bring deep, focused domain knowledge to specific challenges, rather than broader generalist firms. Given the rapid pace of change, identifying the right partner to bridge knowledge gaps has become a critical strategic priority.

Where are we seeing the most attractive valuations or opportunities within the space right now? Are there specific subsectors that are drawing the most interest from sponsors and strategics?

ES: I would highlight two key subsectors that are attracting strong investor interest, largely because they possess defensible moats against AI disruption:

First, geopolitical risk consulting. In this space, the primary currency is high-level access and trusted relationships within a landscape that changes daily. When making high-stakes global decisions—such as establishing overseas manufacturing operations or navigating complex trade policies in China or the Middle East—executives want an experienced advisor in the room. Because these services rely on diplomatic access, nuanced judgment, and personal relationships, investors view them as highly insulated from technological disruption.

Second, litigation consulting. Trials involve intricate case-specific nuances, requiring attorneys and testifying experts to construct tailored arguments that best defend their clients. While AI can assist with document analysis and research, it cannot replace the specialized testimony, courtroom credibility, and human judgment of an expert witness. Investors recognize that litigation consulting benefits from a substantial barrier to disruption.

DB: We are seeing a pronounced flight to quality across the sector. Consulting is fundamentally a relationship- and reputation-driven business; established brands, institutional history, and client trust built over decades cannot be easily replicated. High-quality work and sound advice generate strong word-of-mouth referrals, lasting brand equity, and client loyalty. Regardless of whether a firm is boutique, middle-market, or large, premier quality commands strong valuation multiples in today’s market.

What is the one piece of advice you find yourself giving to clients the most often in today’s market?

ES: My primary advice is to make decisions that are fundamentally right for your business, rather than managing toward an anticipated transaction, market timing, or isolated trends. Chasing short-term trends or timing a deal is fraught with unpredictability. Clients frequently ask whether they should make a strategic hire or open a new facility in contemplation of a future sale; my view is that you should execute what is best for the company’s long-term health, and a successful transaction will follow naturally.

Particularly in an environment characterized by rapid technology deployment, companies should not make investments solely to generate a narrative for prospective buyers. Maintaining discipline in capital allocation is critical.

DB: I would emphasize three key principles:

First, recognize that not all revenue is created equal. Focus on high-quality clients, sustainable revenue streams, and margin-accretive opportunities rather than simply chasing top-line volume.

Second, maintain strategic discipline and focus. Being best-in-class—an “A+“ provider in a focused niche is far more valuable than delivering mediocre, “B-level“ service across multiple capabilities. Define your core competency, execute it exceptionally well, and stick to it.

Third, prioritize advanced preparation. Ensuring your financials are in order, your management structure is balanced, and your operational processes are well institutionalized before exploring a transaction makes all the difference. Scrambling to get organized at the 11th hour is rarely a formula for a successful exit.

So, what’s The Takeaway?

ES: People are still important. That applies across every dimension: relationships with clients, relationships with employees, and collaboration among teams. Ultimately, strong human relationships drive sound business decisions.

DB: When you bring together great people, give them awesome work to do, and back them up with a fantastic culture, you naturally build the ultimate engine for massive ROI.