Following the closing of the transaction, which is expected in the second calendar quarter of 2024, Grant Thornton will operate in an alternative practice structure: Grant Thornton LLP, a licensed CPA firm, will provide attest services — and Grant Thornton Advisors LLC will provide business advisory and non-attest services.
Grant Thornton LLP, one of America’s providers of audit and assurance, tax, and advisory services, and New Mountain Capital, LLC, a growth-oriented investment firm with approximately $50 billion in assets under management, announced a significant growth investment to accelerate Grant Thornton’s business strategy.
Grant Thornton has a long track record of providing clients with the highest quality, differentiated services and is operating with significant momentum, having generated record revenues for its fiscal year ending July 31, 2023. In recent years, the firm has successfully implemented a business strategy featuring meaningful investments across its core business segments, as well as enhanced client centricity, personalized services, and quality. Grant Thornton is fueling its strategy by offering dynamic professional development paths and a singular culture that attracts and retains talented team members.
“Our partnership with New Mountain Capital empowers Grant Thornton to deliver transformational, high-quality outcomes for our clients, our talented team members, and the industry as a whole,” said Seth Siegel, CEO of Grant Thornton. “The investment immediately enhances our value in the marketplace and enables us to accelerate our current strategy. We’ll enjoy greater scale, resources, and agility, while better positioning the firm to make targeted investments in talent, technology, infrastructure, and enhanced capabilities. Grant Thornton will further solidify our position as the industry’s platform of choice.”
Fintech Insights: Hyper-personalization in Banking: The Tech Journey to Serving a Segment of One
Andre Moura, managing director at New Mountain Capital, said, “We have been deeply impressed by the Grant Thornton team, and in our research, Grant Thornton ranked at the highest levels in the U.S. as measured by the quality of its work product and the satisfaction of its clients, even at a much lower price to clients. Grant Thornton’s unique culture drives the exceptional service the firm provides its clients, and we look forward to working with Grant Thornton to invest further in technology and automation, talent, and new service line capabilities to achieve rapid growth — while maintaining an unwavering focus on quality and client experience.”
“We are thrilled to support Grant Thornton as it advances its superior, technology-enabled audit, tax, and advisory services platform. Grant Thornton offers its clients a compelling value proposition and we look forward to helping the firm expand its service offerings and execute strategic acquisitions to continuously grow its platform,” added Nikhil Devulapalli, managing director at New Mountain Capital.
Siegel cited Grant Thornton’s upcoming 100th anniversary as a companion milestone to its partnership with New Mountain Capital: “We take great pride in our many accomplishments over the past century, and partnering with New Mountain Capital will ensure that we fully capitalize on the compelling opportunities that will define our next century. They share our standards and our vision, and together we will reshape the industry landscape while enhancing Grant Thornton’s value proposition for our full range of stakeholders.”
The transaction is subject to regulatory approval and other standard closing conditions. Following the closing of the transaction, which is expected in the second calendar quarter of 2024, Grant Thornton will operate in an alternative practice structure: Grant Thornton LLP, a licensed CPA firm, will provide attest services — and Grant Thornton Advisors LLC will provide business advisory and non-attest services. The purpose-built structure will ensure the highest possible client service and an unwavering focus on quality.
Deutsche Bank Securities Inc. is serving as the sole financial adviser to Grant Thornton. Dechert LLP and Vedder Price P.C. are serving as legal advisers to Grant Thornton. Mayer Brown LLP is acting as legal adviser to Grant Thornton’s Partnership Board. Simpson Thacher & Bartlett LLP and Hunton Andrews Kurth LLP are serving as legal advisers to New Mountain Capital.
Fintech Insights: Hyper-personalization in Banking: The Tech Journey to Serving a Segment of One
[To share your insights with us, please write to pghosh@itechseries.com ]
