EY break-up could be back on after approach from US private equity giant
A plan to separate the consulting arm of EY from the rest of the group could be revived in a different form, according to reports.
TPG, the US private equity giant, has written to senior EY figures proposing a debt and equity deal for the consulting wing of the business, with a plan to float it on the stock exchange at a later date, according to a letter seen by the Financial Times.
It comes after EY’s management team were forced to shelve their own break-up plan earlier this year after internal opposition.
The consulting arm, the crown jewel of EY’s sprawling business empire, would be one of the more significant floats in recent memory should it ever come to listed markets.
A source close to EY’s senior management told the FT that “the expectation is that the organisation will not pursue this expression of interest.”
No price was mentioned in the approach.
Neither EY nor TPG responded to the FT’s request for comment.
The EY spin-off plan, codenamed Everest, was paused after US execs expressed opposition.
“We have been informed that the US Executive Committee has decided not to move forward with the design of Project Everest. Given the strategic importance of the US member firm to Project Everest, we are stopping work on the project,” EY figures said at the time.
EY’s individual national firms are owned by their partners.