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Private Equity Is Taking a Majority Stake in Grant Thornton

The selection of “Grant Thornton” images on our stock photo site sucks, this office in Ireland is the best I could do sorry.

This morning we received a tip:

Grant Thornton with a “strategic partnership” with New Mountain Capital. All hands call at 12:30 CST to discuss

Before we had a chance to go digging around — we haven’t heard a peep about this until now — our tipster sent over a link to a fresh Financial Times report:

Grant Thornton US sells majority stake to private equity

The US arm of accounting firm Grant Thornton has agreed to sell a majority stake to the investment group New Mountain Capital, in the largest of a wave of private equity deals that are reshaping the sector.

The deal, which would be New Mountain’s second investment in a US accounting firm, was announced to Grant Thornton’s nearly 10,000 staff on Friday, according to people familiar with the matter.

Well. A thing like that.

FT doesn’t give numbers but says “it will be the largest of five private equity deals so far among the top 25 US accounting firms” which isn’t saying much as it’s only recently big deals are being made. And adds:

The cash from New Mountain, together with some debt financing, will be used to return capital to current partners, buy out retirement obligations to former partners and build a war chest for investment, according to people familiar with the plans.

If GTers would like to let us know what happens on that all-hands later please text 202-505-8885 or email because I’m dying to hear how they spin this.

Grant Thornton reported $2.4 billion in revenue for its most recent fiscal year ended July 31, 2023.

Grant Thornton US sells majority stake to private equity [Financial Times]

10 thoughts on “Private Equity Is Taking a Majority Stake in Grant Thornton

  1. What a DYNAMIC deal for GT’s firm members, whose INSTINCT FOR GROWTH was just engorged by Private Equity penetrating them with their WHOLE SELVES as their CHOSEN MARKET!!!!

    1. I haven’t been around here in years I’m dying laughing how devoted Chipman has been all this time

    2. There is no heart in this place anyway. If New Mountain makes these GT partners happy, so be it. Most CPA service levels have gone to hell.

  2. Lets be real clear with these PE deals in PA… VC knows their exit strategy before giving anyone money. I hypothesize they will consolidate the various mid-tier firms and we will be ushered into a era from Big 4 to Big 5. Partners will be paid handsomely and salaries will be kept stagnant to keep costs down.

    1. Yes but the retired partners will be screwed. The current firm and partners are standing in the shoulders of the retired partners. Shameful.

      1. 100 years of stewardship out the window! Current partners benefit with big pay days for the work the retired and passed partners put in.

        1. Maybe the current partners are finally being properly rewarded for long working hours over many years and setting a new standard for compensation of service firm workers. Nobody seems to complain when attorneys make millions in contingency fees, injured athletes rake it in for not playing, and people are rewarded with 100s of millions for blindly choosing a few lottery numbers. Let’s not mention inside trading by many of our politicians and BTW it’s spelled PAST, not passed.

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