Private Equity Interest in Grant Thornton’s UK Business: Bidding Process Heats Up

Private Equity Firms Eye Grant Thornton's UK Division

In a major development, iPrivate equity firms are evaluating bids for a stake in Grant Thornton's UK business, with potential valuations reaching up to £1.5bn. The leading firms, including Carlyle, Blackstone, Permira, CVC Capital Partners, and Bridgepoint, are involved in an intense bidding process set to culminate with formal offers by the end of September.

Significance of the Bidding Process

The process, run by Rothschild, is expected to attract interest from other notable parties, including London-based Cinven and New Mountain Capital, the latter aiming to merge Grant Thornton's UK, Ireland, and US operations. This transaction is anticipated to be a crucial milestone in the UK's accounting market.

Regulatory Environment and Market Dynamics

Regulations demand that audit firms be majority-owned by trained accountants, notably complicating any deal that excludes Grant Thornton's audit practice. The firm has recently distanced itself from high-scrutiny public interest audits, yet remains a key player in private equity discussions.

Financial Performance Overview

• Grant Thornton reported revenues of £654mn.
• Operating profit stood at £146mn last year.

As the private equity landscape evolves, firms are increasingly turning towards partnership opportunities for enhancing technological investments and succession planning strategies.