According to Sky News, Deloitte has told executives running its restructuring arm to sound out and approach prospective backers of a management buyout.
The decision comes in the face of a potential surge in its restructuring arm’s profitability due to the increase in corporate insolvencies caused by the Covid-19 pandemic. As such, it is thought that the move is the latest indication of the potential impact impending audit reform targeted towards the big four firms is having on their business models.
Deloitte’s restructuring arm currently employs around 350 members of staff and has 30 partners. A potential price tag for the business is expected to reach several hundred million pounds.
Sky also cites the decision comes after Deloitte’s UK management, led by chief executive Richard Houston, concluded that disposing of the business now would allow them to optimise its value.
Keytree, which currently employs 400 people, provides digital transformation services including data analytics, cloud and robotic technologies and a suite of products and managed services.
According to Deloitte, a merger will create the UK’s largest SAP-enabled transformation practice and allow Deloitte to “significantly grow” its capacity to support clients worldwide. In addition, Keytree would be able to extend its reach to work across the firm’s global network.