EQT Enters Competition for Grant Thornton UK Acquisition

12 Sep, 2024

EQT Enters Competition for Grant Thornton UK Acquisition

Swedish buyout firm EQT has entered the competition to acquire a significant stake in Grant Thornton UK, one of the leading accountancy firms in Britain. This move adds EQT to a competitive list of bidders, which includes major firms like Carlyle, Cinven, CVC Capital Partners, Permira, and potentially Nordic Capital.

The potential deal could value Grant Thornton’s UK operations between £1 billion and £2 billion. Notably, CVC Capital Partners’ involvement is significant because it also owns Teneo, a professional services firm specializing in public relations, political advice, and financial restructuring. This connection highlights the ongoing industry shift towards separating audit and consulting services, driven by past audit scandals and regulatory pressures.

Grant Thornton UK has faced scrutiny from the Financial Reporting Council (FRC), including fines for audit failures related to high-profile clients like Sports Direct and Patisserie Valerie. The firm has since reduced its number of public interest entity (PIE) audit clients to address these issues.

As Grant Thornton continues to explore growth opportunities and external business evaluations, any deal involving the firm would require approval from its approximately 200 partners.