Sales of firms to private equity aren’t necessarily smoother in bigger firms, as Grant Thornton’s US sale to New Mountain Capital hits roadblock.
The sale of a majority stake in Grant Thornton’s US firm to New Mountain Capital has hit an issue, based on a payout to retirees.
Some 350 former partners are entitled to retirement benefits – however, the amount being offered to them as a one-off payout as part of the firm’s sale has been disputed. Further details can be found in the link below.
While it’s not an issue that will specifically resonate with smaller practices, it is indicative that having a clear understanding of the direction of travel of existing equity holders, and anyone else that has an interest in – or influence on – your firm, could be disrupted or unhappy with an outright sale.
In this case, it’s clear that the PE firm wants a ‘clean break’ from the firm’s current way of doing things, which may bring about more thinking from staff and stakeholders about the path that lies ahead under new ownership.
Keith Underwood is MD of Foulger Underwood. If you’d like to talk to Keith and the team, please get in touch by clicking here
Source: The Financial Times – Grant Thornton retirees escalate revolt over private equity deal