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EY reportedly borrowed more than $700m (£558m) in order to help finance the plans for its failed attempt to split its consulting and accountancy arms, according to new accounts first seen by the Financial Times.
The FT said that accounts filed at Companies House show borrowing at the Big Four Firm increased to $983m (£778m) in 2023, up from $296m (£234m) the previous year.
The separation, named Project Everest was abandoned last April, saw the firm increase its existing floating rate credit facility and also take out another with the extra debt thought to be used to help spread the costs of Project Everest across more than one financial year.
The outlet reported that EY has told partners that the sum borrowed for Project Everest will “almost entirely” be paid off by July of this year.
EY told the Financial Times: “It is common for a $50bn global organisation such as EY to maintain a modest financing facility on our balance sheet.
“The financing facility has been utilised to support previous investments in new technology, managing cash flow and growing specific practices. As already communicated to our partners the costs incurred during Project Everest will be almost entirely paid down by July 1, 2024.”
In November last year it was revealed that EY Global chair and CEO, Carmine Di Sibio, who also oversaw Project Everest, was to step down from his role and be succeeded by Janet Truncale.
Truncale is set to take over the running of the multinational company made up by smaller member firms, In July of this year.
