Firm Management
Grant Thornton US Strikes a Deal With … Grant Thornton in Ireland
Grant Thornton's tax and advisory business, Grant Thornton Advisors, is merging with its counterparts at Grant Thornton Ireland.
Oct. 25, 2024
Nearly two weeks after it was announced that top five U.S. accounting firm RSM US and the U.K. version of RSM are in “advanced discussions” to merge in a move that would further service their middle-market clients as they expand globally, top seven firm Grant Thornton US said on Oct. 24 that it was combining its tax and advisory business with its counterparts at Grant Thornton Ireland.
The deal, which is expected to close sometime in the first quarter of 2025, will be backed by an investor group led by New Mountain Capital, a private equity firm headquartered in New York City that bought a significant stake in Chicago-based Grant Thornton US in a transaction that was completed this past May.
Both Grant Thornton US and Grant Thornton Ireland are members of the Grant Thornton International network of independent accounting and consulting firms.
According to a media release, Grant Thornton Advisors will merge with Grant Thornton Ireland’s advisory and tax businesses. Grant Thornton US now operates in an alternative practice structure, in which Grant Thornton Advisors provides tax, business advisory, and non-attest services, while Grant Thornton LLP, a licensed CPA firm, provides attest services.
Under terms of the deal, Grant Thornton Ireland’s audit business will continue as an independent partnership and operate under an alternative practice structure.
The website The Currency described how the merger came about:
The origins of Grant Thornton’s Ireland merger with Grant Thornton US, announced today, can be traced back to April and a conversation between Steve Tennant and Seth Siegel. Grant Thornton’s US business was in the process of selling a piece of itself to private equity (PE) investors, with New Mountain Capital acquiring a majority position in the firm’s non-audit business. Siegel, the chief executive of the US business and a key architect of the New Mountain deal, asked Tennant, who headed the Irish business, if he were open to a deal.
And the rest is history.
The combined business, which will be led by Siegel, Grant Thornton Advisors’ CEO, will provide tax and advisory services to clients across the U.S., Ireland, Bermuda, Isle of Man, and Gibraltar.
“This is a landmark year, as we’re commemorating Grant Thornton’s 100th anniversary in the U.S., and I can’t think of a better way to do it than by spearheading a seamless and integrated global platform with Grant Thornton Ireland—one that puts us in the vanguard of high-growth and high-quality firms,” Siegel said in a statement. “We share a common focus on client centricity, culture, and delivering the highest-quality results on a global scale. This strategic move signals a pivotal time in our industry that enables our clients to benefit even more from our innovative services with industry-leading execution and bolsters accelerated and meaningful career-growth opportunities for all our professionals.”
Tennant, the current CEO of Grant Thornton Ireland, will assume the role of president of the Dublin-based firm and will become a member of Grant Thornton Advisors’ Executive Committee.
“This transformational partnership will enhance our appeal to a much broader international client base, as the first truly integrated U.S. and Irish professional services firm, combining the expertise and reach of both firms,” he said. “This is a key moment in shaping the future of professional services in a rapidly evolving global landscape, and we are looking forward to partnering together to accelerate growth and deliver impactful benefits for our people and clients across diverse industries and geographies.”
Grant Thornton Ireland is a leading audit, tax, and advisory services provider in Ireland, most recently achieving record annual revenue in excess of €300 million ($333 million).
Adam Weinstein, chief operating officer at New Mountain Capital, called the deal “a significant opportunity for accelerated growth together, and we look forward to helping Grant Thornton bring its exceptional quality and client service to even more global clients.”
“New Mountain Capital is proud to support the coming together of Grant Thornton in the U.S. and Ireland. This is an exciting step forward in our growth strategy that enhances the Grant Thornton brand and international capabilities,” added Andre Moura, managing director at New Mountain Capital.
Simpson Thacher & Bartlett LLP and William Fry LLP with Arthur Cox LLP are serving as legal advisors to Grant Thornton Advisors and New Mountain Capital. Deutsche Bank Securities Inc. is serving as sole financial advisor to Grant Thornton Ireland, while A&L Goodbody LLP is acting as Grant Thornton Ireland’s legal advisor in relation to the transaction.