Another Accenture? Why EY would want to split in two
Splitting audit and consultancy is nothing new for professional services businesses, but these separations have a chequered history.
There was a sense of déjà vu for older and former partners at big four consulting firms Deloitte, KPMG and PwC when they heard that EY had called in investment banks JPMorgan and Goldman Sachs to advise on a possible listing or sale of its consulting business.
Two decades ago, these veterans had watched leaders at EY, KPMG and PwC hive off their consulting arms to head off an impending regulatory crackdown. A group of partners at Deloitte also attempted to privatise the consulting arm, but the deal did not go ahead due the higher cost of financing the deal after the dotcom bust.
This article has updated to clarify that Deloitte’s partners attempted to privatise, not float, the consulting business two decades ago.
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