The non-public fairness agency Cinven is in superior talks to purchase a significant stake in Grant Thornton UK in a deal that will rank among the many most vital ever struck in Britain’s audit sector.
One insider sugested that New Mountain Capital, which owns a giant stake in Grant Thornton’s US enterprise, remained in competition to do a deal.
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They added that if Cinven did emerge victorious from the public sale, it will recommend that Grant Thornton’s British companions have been eager to retain a level of independence from their transatlantic colleagues.
Estimates through the public sale course of have advised that the UK agency can be valued at greater than £1.5bn.
Cinven is alleged to have been negotiating the acquisition of a controlling stake.
Different contenders, together with EQT, Permira and Carlyle, have been eradicated from the method in current weeks.
Grant Thornton has round 200 UK fairness companions, who could have a say on the deal.
The agency has improved its monetary efficiency following a turbulent interval for its management, with a £1.3m advantageous being imposed for “serious failings” in 2022 in relation to its audit of Sports activities Direct, the sportswear empire based by Mike Ashley and now generally known as Frasers Group.
It was additionally handed a £2.3m penalty the yr earlier than for demonstrating a “serious lack of competence” in relation to its work on Patisserie Holdings, the proprietor of the collapsed cafe chain Patisserie Valerie.
Since then, Grant Thornton has slashed the variety of so-called public curiosity entity (PIEs) audit shoppers, a class which incorporates banks, insurers and different firms deemed to be of explicit significance.
Cinven refused to remark, whereas Grant Thornton UK couldn’t be reached for remark.
A spokesperson for the agency beforehand stated: “As all businesses do, we continually evaluate the external business and economic landscape and explore various avenues that will drive growth for our firm.
“This permits us to make knowledgeable choices about what’s greatest for our individuals, our shoppers, and our agency.
“No decisions have been made and, whilst we are considering our options, we will not be commenting further.”
