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Grant Thornton’s UK and US firms are competing to acquire their German counterpart in a private equity-led push to consolidate the network’s international structure, according to the Financial Times.
People familiar with the matter told the FT that Grant Thornton Germany is reviewing bids from both parties.
The contest reflects “shifting dynamics” in the network after recent injections of private capital, the FT reported.
Grant Thornton US has pursued an aggressive acquisition strategy since selling a majority stake to a consortium led by New Mountain Capital last year – the largest private equity takeover of an accounting firm.
It acquired the Irish arm in October and later made an unsuccessful bid for Grant Thornton UK, which instead sold a majority stake to European buyout firm Cinven.
Talks are now under way to acquire the German firm, with similar negotiations expected across other national businesses.
Offices in Spain and India have also expressed interest in potential sales, according to three people familiar with the matter.
Grant Thornton Bharat confirmed it was open to discussions. Chief executive Vishesh Chandiok told the FT: “We are open to acquiring a material interest in our US or UK firms as and when their private equity owners decide appropriate.”
Two people familiar with the talks said Grant Thornton US has agreed to acquire member firms in the United Arab Emirates, the Channel Islands, Luxembourg and the Netherlands – jurisdictions in which Grant Thornton UK had also shown interest.
One in three of the top 30 US accounting firms has sold stakes to financial investors in the past four years. While most have focused on domestic consolidation, Grant Thornton US is the first to acquire international sister firms.
Two people familiar with its strategy said the approach offered access to US clients and multinational corporations, along with a first-mover advantage.
However, some firms may favour a tie-up with Grant Thornton UK over becoming subsidiaries of a larger US operation with fewer synergies, one person familiar with the UK bid said.
Grant Thornton US told Accountancy Today: “We are proud to have built a multinational platform, underpinned by investments in technology, people and quality. As a significant participant in the Grant Thornton International network, we continue to collaborate closely with Grant Thornton UK and the broader network, which we deeply respect.”
A spokesperson of Grant Thornton UK, added: “As the two largest member firms within the Grant Thornton International network, the UK and US firms remain closely aligned and committed to the wider growth of the network. We are unable to comment on the strategic choices member firms make or options they explore.”
Grant Thornton Germany declined to comment.
