Unlock the Editor’s Digest without spending a dime
Grant Thornton’s US enterprise and two European buyout companies are amongst bidders to have made a shortlist of suitors vying to purchase a stake within the mid-tier accountant’s UK franchise.
Grant Thornton’s personal equity-owned US enterprise, Sweden’s EQT and London-based Permira have been put via to the subsequent spherical of bidding in a course of geared toward securing a valuation of as much as £1.5bn for Grant Thornton UK, in line with individuals acquainted with the matter.
Cinven, one other mooted bidder, declined to touch upon whether or not it had made the shortlist.
The shortlist leaves Grant Thornton with a number of strategic choices, every of which might shake up the UK accounting panorama.
Grant Thornton operates as a world community of legally separate partnerships, and the thought of merging the UK enterprise into the US arm can be a big innovation. US agency leaders imagine it might turbocharge development by permitting them to higher goal worldwide purchasers.
Grant Thornton US lately bought a majority stake to a consortium led by the personal fairness group New Mountain Capital, which is eager to bankroll worldwide enlargement. It has proposed the thought of buying not simply the UK group but additionally Grant Thornton Eire, which has employed bankers of its personal to contemplate the thought, the Monetary Occasions has beforehand reported.
Alternatively, a stake sale to a buyout agency would mark probably the most vital personal fairness transaction within the UK’s accounting trade to this point.
The 2 companies and Grant Thornton US declined to remark.
“It’s fascinating to see that world opening as much as personal fairness and so they really need us to personal them,” mentioned an govt of one of many companies that bid for Grant Thornton, referring to the buyout trade as an entire.
“It’s a individuals enterprise and we perceive individuals companies as a result of we’re one,” the chief added.
Personal fairness involvement has been extra intensive within the US accounting market, the place the sale by Grant Thornton US of a 60 per cent stake to a consortium led by New Mountain Capital in March this yr was the biggest deal thus far.
The potential sale of Grant Thornton UK initially garnered curiosity from a number of personal fairness teams together with Blackstone, Carlyle, Bridgepoint and CVC Capital Companions, the FT beforehand reported.
Luxembourg-based CVC, which was initially seen by trade executives as a frontrunner, thought-about making a suggestion however in the end determined to not bid, individuals with information of the method mentioned.
CVC’s possession of Teneo, to which it bolted on Deloitte’s former restructuring unit in 2021, could have made it too sophisticated for the personal fairness agency to bid for one more monetary providers firm, one other particular person with information of their operations urged.
UK guidelines mandate that audit companies have to be majority owned by educated accountants, that means any funding by a buyout agency can be more likely to contain ringfencing Grant Thornton UK’s audit apply.
Grant Thornton UK mentioned was exploring “varied avenues that can drive development for our agency,” including: “No selections have been made and, while we’re contemplating our choices, we is not going to be commenting additional.”
Carlyle, Blackstone, Bridgepoint and Rothschild declined to remark. CVC didn’t instantly reply to a request looking for remark.
Further reporting by Ivan Levingston in London