The Ethics Compromise That Ended My Consulting Practice

Built boutique consulting firm over 10 years. 25 consultants, $8M annual revenue, strong reputation for honest, data-driven advice.

Largest client (30% of revenue) asked us to validate a decision they'd already made to acquire a competitor. Their CEO told me privately: "We're doing this deal. We need your analysis to show the board it's smart." Red flags everywhere: overvalued target, cultural mismatch, integration risks. But losing this client would mean layoffs. I rationalized: "We'll find SOME positive case." We ran best-case scenarios, minimized risks, wrote a report that was technically accurate but misleading in emphasis.

Deal closed. Integration was disaster. Target company's revenue was inflated—channel stuffing to distributors. Hidden liabilities emerged. Acquisition lost $40M in 18 months. Client CEO was fired. New CEO reviewed all consulting engagements. Our report was exhibit A of "enablers." We were fired and replaced. Word spread in industry. Three other clients asked questions about our "objectivity." We lost two of them. Firm revenue dropped 50% in 8 months. We had to lay off 12 people. My two partners blamed me. Partnership dissolved. Firm shut down in 2018.

• Walk away from any client that asks you to validate a predetermined conclusion
• Implement "ethical veto" policy—any partner can stop engagement for ethics concerns
• Diversify client base—no client over 15% of revenue
• Create "integrity tax" budget—money set aside to afford saying no
• Write down firm values when stakes are low, commit to them publicly
• Have external ethics review for any engagement over $500K