Grant Thornton (one of the leading providers of audit and assurance, tax, and advisory services) and New Mountain Capital (a growth-oriented investment firm with about $50 billion in assets under management) announced a significant growth investment to accelerate Grant Thornton’s business strategy.
Grant Thornton has a strong track record of offering high-quality services to its clients. Grant Thornton provides dynamic professional development paths and a culture that attracts talented team members.
The deal 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 (provide business advisory and non-attest services).
Interestingly, Grant Thornton is not the only accounting company to sell a large stake. Earlier this year, Hellman & Friedman (H&F) and Valeas Capital Partners bought a $1 billion stake in Baker Tilly US for just over half of the firm.
Deutsche Bank Securities is Grant Thornton’s sole financial adviser. Dechert LLP and Vedder Price P.C. are its legal advisers. Mayer Brown LLP is acting as legal adviser to Grant Thornton’s Partnership Board. Simpson Thacher & Bartlett LLP and Hunton Andrews Kurth LLP are its legal advisers to New Mountain Capital.
KEY QUOTES:
“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. 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.”
“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.”
– Seth Siegel, CEO of Grant Thornton
“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.”
– Andre Moura, managing director at New Mountain Capital
“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 on strategic acquisitions to continuously grow its platform.”
– Nikhil Devulapalli, managing director at New Mountain Capital
