EQT bids for stake in Grant Thornton UK accountancy firm

EQT, a Swedish buyout firm, has entered the competitive bidding process for a significant stake in Grant Thornton's UK operations, one of the largest accountancy firms in Britain. This move comes as EQT is also in the midst of acquiring Keywords Studios, a computer games producer. The firm submitted an indicative offer to Grant Thornton's advisers just before a recent deadline, joining other notable bidders such as Carlyle, Cinven, CVC Capital Partners, and Permira, with Nordic Capital also considering an offer. Industry sources suggest that the valuation of Grant Thornton's UK arm could range between £1 billion and £2 billion. CVC's participation is particularly noteworthy due to its ownership of Teneo, a professional services firm that has been involved in public relations and financial restructuring, highlighting the ongoing scrutiny of audit and consulting operations within large accounting firms. This scrutiny has intensified following audit scandals involving companies like BHS and Carillion, which have led to calls for the separation of these services. Grant Thornton has faced its own challenges, including fines from the Financial Reporting Council for serious failings in audits, which have prompted the firm to reduce its number of public interest entity audit clients. The firm has approximately 200 partners who will play a crucial role in deciding any potential transaction. Meanwhile, its US counterpart has already sold a majority stake to New Mountain Capital, indicating a trend of restructuring within the firm. As the bidding process unfolds, the outcome will significantly impact Grant Thornton's future direction and its ability to navigate the evolving landscape of the accountancy sector, which is under increasing pressure to address conflicts of interest and enhance audit quality.