In the meantime, if the split is approved, we should expect a significant marketing blitz from EY’s new consulting-business offshoot, which will have to establish itself as a standalone brand without resting on EY’s laurels. Not even a day after FT said there was trouble in paradise they followed up with another article to say EY is in disarray as internal war. Depending on how EY’s breakup goes in the medium term, regulators may push for ways to split up the other Big Four regulators see these giants’ size and variety of services as potential sources of conflicts of interest. EY (Ernst & Young), a key part of the Big Four, which also includes Deloitte, KPMG and Pricewaterhouse Coopers, has decided globally to split its audit and non-audit practices. Said FT, EY’s US auditors have been pushing for more of its overseas tax practices to be retained in the audit firm as well so that they can work for international subsidiaries of crucial US clients. So far, however, KPMG, Deloitte, and PricewaterhouseCoopers all said they’re sticking to their singular structures, in which auditing and consulting operate as one business. EY’s leaders face tremendous pressure to balance competing factions and motivationsa really difficult task, said Mathieu Shapiro, managing partner and a complex commercial litigator for Obermayer Rebmann Maxwell & Hippel LLP. “Who doesn’t want a massive payday if you think it’s there and it’s not going to cause… longer-term harm?” Partners in the audit business will receive cash payouts, while consulting partners will receive equity in the new company. Partners would expect that any successor business will be set up to succeed post-split. ![]() “There’s a good chance it will cause other big firms to follow suit,” said Martin White, Senior Analyst at Source Global Research. The EY split may have a cascading effect on how the other Big Four structure their businesses. 4. EY, one of the world’s biggest auditing and consulting firms, is moving forward with a plan to split up its two main business practices. The audit-focused company would retain the EY brand. Partners at accounting giant Ernst & Young are expected to approve a split of the company’s auditing and consulting businesses.
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