Big Four

KPMG in talks to sell restructuring arm to HIG for £400m

According to Sky News, HIG Europe is in detailed negotiations to acquire the business

KPMG is reportedly in exclusive talks regarding a £400m sale of its restructuring arm to HIG Europe, according to Sky News.

The accounting firm’s restructuring arm has been a high-profile administrator during the pandemic, dealing with Arcadia Group’s flagship Topshop store in London.

This deal would represent the most valuable disposal to date by one of the UK’s big four auditors.

Sources told Sky News that the transaction could be announced as early as next week.

Blair Nimmo, Will Wright and Mark Raddan – three of KPMG’s restructuring partners – are reportedly in talks to hold senior positions once the deal is complete, while former Deloitte chairman John Connolly is reportedly in talks with HIG about becoming chairman of the new business.

The potential sale of KPMG’s restructuring arm comes amid pressure on big four firms to get rid of conflicting interests between their audit and consultancy practices.

Last week, Deloitte’s restructuring arm was acquired by global CEO advisory and consultancy firm, Teneo.

Big four firms have submitted plans to the Financial Reporting Council (FRC) outlining how they plan to “operationally separate” their audit and consulting arms during the next four years.

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