Two Private Equity Firms Are Fighting It Out For International Grant Thornton Dominance

Posted on by Going Concern News Desk
Grant Thornton office at night

TLDR Grant Thornton UK’s private equity firm grabbed Grant Thornton Germany, Grant Thornton Germany’s CEO said the thing.

So Cinven has grabbed themselves another Grant Thornton, that Grant Thornton being Grant Thornton AG Wirtschaftsprüfungsgesellschaft. That’s German, obviously:

Cinven is the private equity firm that got a piece of Grant Thornton UK last year after a failed attempt by the New Mountain Capital-backed US firm to bring GTs UK and Ireland into the fold. US did manage to grab Ireland but the GT Germany deal with the UK’s private equity firm may signal a coming battle over other Grant Thorntons around the world. Are there other Grant Thorntons around the world? Guess we’ll find out.

Here’s what Cinven had to say:

Grant Thornton Germany is one of the leading and fastest‑growing audit and advisory firms in the German market and is a high‑quality provider of these professional services to international businesses in the upper mid‑market. With around 2,000 employees across ten offices, the firm supports a broad client base ranging from family-owned businesses to listed corporations, and public institutions.

Through the partnership with Cinven, Grant Thornton Germany will gain access to additional growth capital and Cinven’s deep expertise. This will enable the firm to accelerate its adoption of cutting-edge technologies in key areas such as digitalisation and artificial intelligence, expand into new growth segments, and further strengthen its ability to attract, develop, and retain top talent, while reinforcing its commitment to the highest standards in audit and advisory services.

They added that Cinven funds’ shared ownership will strengthen collaboration between Grant Thorntons UK and Germany, and “seize substantial opportunities in technology investment and international client service across Europe’s two largest economies.”

Credit to Prof. Dr. Heike Wieland-Blöse, CEO of Grant Thornton Germany, who said: “The partnership with Cinven gives us the opportunity to position Grant Thornton Germany in the best possible way for the future in a DYNAMIC [capitalization ours] market environment. Cinven brings valuable expertise, resources, and access that will help us further expand our service offering for clients while continuing to enhance our attractiveness for employees and future talent. Cinven shares our values of independence, integrity, and partnership. Together, we aim to strengthen our position as a leading quality provider in the German market and unlock new growth opportunities.”

Admittedly we are not in the loop on the German professional services market so more digging is required to see how Germany regulators, GT staff, and bitter social media commenters feel about a deal like this. German GTers are welcome to reach out to us with their thoughts (anonymer, natch).

Related Posts

Sue Sachdeva Was Needlessly Paranoid About Grant Thornton’s Fraud Detecting Abilities

About a year ago at this time, we just started learning about Sue Sachdeva, the convicted embezzler extraordinaire of headphone cobbler Koss. It took a little less than a year for everything to get sorted out including quite the inventory of luxury loot, her emerging talent for stealing money, lawsuits, a guilty plea and a sentence of 11 years.

Since all that’s settled it’s on to the lawsuits and Suze was recently deposed in Koss’s lawsuit against Grant Thornton where she testified about many interesting things, including being a nervous nelly from the get-go:

Former Koss Corp. executive Sujata “Sue” Sachdeva worried each day that she would be caught embezzling money that eventually totaled $34 million.

“Fear was one thing. I thought it was imminent,” she said in a recent court deposition. “Their auditors, every time they walked in, I’d say, ‘This is it. They’re going to catch me.’ 

Turns out, S-squared was paranoid for no good reason because – as we all know – GT had no clue that she was lifting millions every year to pay off her AMEX, partly, she says, because they were throwing green auditors at the company every year:

Sachdeva said in the deposition that Grant Thornton considered Koss to be a well-run company and a good training ground for its new auditors.

“Every year, we’d have at least one or two new auditors come through, and I know Michael (Koss) and I both objected to that – getting kids right out of college and had to explain the business to them every time,” Sachdeva said.

Sachdeva said she never held back documents from the auditors. They didn’t question the amounts of money flowing in and out of the company, nor did they question the internal controls, she said. The lack of inquiries surprised her, she said.

Then there were the allegations that she was having regular three-vodka-shot lunches, according to an October article in Milwaukee Magazine:

Retailers who lunched with Sachdeva say she downed vodka shots at the North Shore Bistro with Julie and Tracy. “Then they all went back to work bombed,” says one shop owner.

One consignment shop owner recalls picking up Sachdeva and taking her to Harvey’s restaurant in Mequon. “Sue told the waiter she wanted her ‘juice.’ They knew that meant vodka,” says the shop owner, who was surprised by how much Sachdeva drank.

Well, it all kinda makes sense now doesn’t it? She was either paranoid because she drank or drank because she was paranoid. OR the amateur auditors drove her so batty and she had no choice but to get a little loaded. Anyway you slice it, the auditors seem to be ones to blame, which seems like a trend these days.

Koss embezzler feared discovery from start [MJS]
The Diva [Milwaukee Magazine]

2 thoughts on “Two Private Equity Firms Are Fighting It Out For International Grant Thornton Dominance”

  1. GT US is not looking to buy up all of the international affiliates. If you look at the ones they have acquired so far like Ireland and Cayman Islands, they are all countries that have an established or growing presence in financial services because they think that will bring efficiencies or additional opportunities for their existing FS clients. I doubt that Germany was on their list of targets.

    1. From a Grant Thornton US perspective, many of the smaller international affiliates do not maintain their own offshore delivery capabilities. For example, GT UK and GT Germany may currently lack the scale of dedicated offshoring operations that GT US has established. In this context, expanding or acquiring additional offshore capacity makes strategic sense.

      By leveraging GT US’s offshore infrastructure, larger affiliates such as the UK and Germany could gain immediate access to a mature platform without the need to build their own. This creates an opportunity to share the cost of offshore operations across multiple firms rather than having GT US absorb 100% of the investment. The same model could apply to other shared initiatives, such as AI development, where pooled resources reduce the burden on any one firm while accelerating adoption across the network.

      Structuring these capabilities as a global shared resource not only enhances efficiency but also creates tangible cost synergies and competitive advantages for the broader GT network.

      IMO, I don’t know why GT would not want to acquire GT Germany and other larger affiliates to help share in the cost structure which will be significant over the next 3 to 5 years.

      1

Comments are closed.