https://nighthawkrottweilers.com/

https://www.chance-encounter.org/

Business

EY explores listing or partial sale of global consulting business




EY is exploring a public listing or partial sale of its global consulting business as part of the most radical transformation of a Big Four accounting firm in two decades, according to people with direct knowledge of the case.

An ownership sale or listing will increase the prospects for a massive downturn for EY’s existing partners who own and operate the company, which is reminiscent of the listings of Goldman Sachs in 1999 and Accenture in 2001.

The 312,000-strong company, which together with Deloitte, KPMG and PwC dominates the accounting industry, considers a historic dissolution of the business as a solution to the conflicts of interest that have haunted the profession and attracted regulatory scrutiny.

EY̵[ads1]7;s consulting firms, which offer tax, advisory and contractual advisory services, generated revenue of $ 26 billion last year and employ 166,000 advisers.

EY’s audit business, which generated revenue of $ 14 billion last year, is likely to remain a partnership after any breakup. Some advisors would go over to the audit side to support their work in areas such as tax, said people with knowledge of the details.

The newly independent consulting business will have the opportunity to incorporate as a company, so that it can take on external financing through a sale or listing. New investment could help it grow and compete with larger consulting firms such as Accenture, which reported revenue of $ 51 billion last year and is valued at around $ 200 billion on the New York Stock Exchange.

A break-up will also free up EY’s consulting business to win work from companies audited by EY, and open up for a number of potential new customers who are currently banned under independence rules.

EY was informed about the planning by JPMorgan and Goldman Sachs, said people with knowledge of the case. The banks declined to comment.

The company’s senior partners have not yet come up with a concrete proposal to the partners on whether they should continue with a restructuring and exactly what form it should take.

The sale of parts of the business to external shareholders will be a radical departure. A senior partner in another company said that selling parts of the business and handing over unexpectedly to partners would change the existing structure where “you come in naked and you go naked” with the company’s capital preserved for the next generation.

The Big Four is structured as a network of legally separate national member firms that pay a fee each year for shared branding, systems and technology. The set-up has prevented them from taking on external investments and made it difficult to drive through radical overhauls, which require broad consensus across the business.

However, EY is considered by many accountants to be the best placed among the big four to push through significant international change because its global executives have greater influence than its competitors, where private partners have more power.

EY partners will still have the opportunity to vote on any changes. When asked if EY can line up investors before a ballot paper, a person with knowledge of the matter said: “We are reviewing these alternatives. We will look for what is in the right interests of all partners. “

EY and other professional service firms have the “doorbell ringing all the time” from private equity firms looking to invest in parts of their business, this person said. An IPO would be more difficult to complete than a private share sale, the person added.

A split in EY would force their rivals to decide whether to follow suit.

On Friday, PwC, Deloitte and KPMG said they believe in the benefits of having their auditing and consulting businesses under one roof.

PwC said it had “no plans to change course”, while Deloitte said it was “committed to our current business model”. KPMG said that an interdisciplinary model “brings a number of benefits”.

A breakup is likely to attract disagreement from some partners. Auditing has historically had lower profit margins and may struggle to recruit and retain employees, especially expert partners who earn most of their money on consulting, but who provide crucial expertise in areas such as tax, Big Four partners said.

EY declined to comment on the possibility of a share sale or listing. Following the news of the planning of the uprising on Thursday, Global CEO Carmine Di Sibio told employees in an email Friday that “no. . . decisions have been made ».



Source link

Back to top button

mahjong slot

https://covecasualrestaurant.com/

sbobet

https://mascotasipasa.com/

https://americanturfgrass.com/

https://www.revivalpedia.com/

https://clubarribamidland.com/

https://fishkinggrill.com/