Grant Thornton Australia in Advanced Negotiations to Partner with US Private Equity Backer
In a significant development within the professional services sector, Grant Thornton Australia, the eighth-largest accounting firm in the country by revenue, is reportedly nearing a strategic partnership or possible acquisition by its American counterpart. Sources familiar with the matter indicate that Grant Thornton US, which is partially owned by New York-based private equity firm New Mountain Capital, is actively conducting due diligence with the aim of acquiring the Australian operation.
Background and Context
This potential transaction follows a period of strategic activity for Grant Thornton Australia. In October, the firm engaged Greenhill & Co., a prominent financial advisory firm, to explore future ownership options amid rising interest from private equity investors in the professional services segment. The increased activity is part of a broader trend where private equity firms are increasingly investing in accounting, consulting, and advisory businesses globally.
Private Equity Interest in Professional Services
The sector has attracted significant attention from private equity firms across the US, UK, and Europe, driven by the sector’s steady cash flows, fragmentation, and the opportunity for technological enhancement. In Australia, this interest is evident through various recent transactions, such as Mercury Capital’s acquisition of Findex—Australia’s sixth-largest accounting firm—and BGH Capital’s investments in consulting through Horizon Nexus Partners and other firms like Stannards, a prominent advisory firm.
Financial Performance and Strategic Positioning
Grant Thornton Australia has demonstrated resilience and growth, reporting a 7% increase in revenue to AUD 384 million for the 2025 financial year. This growth stands out amid a shrinking landscape for the Big Four consulting firms—Deloitte, EY, KPMG, and PwC—that have all experienced declines in certain market segments during the same period.
International Expansion and Private Equity Ownership
Globally, Grant Thornton’s network has seen a recent shift in ownership structures, with private equity firms gradually acquiring or divesting stakes in various country operations. Notably, New Mountain Capital has acquired Grant Thornton’s US business and is now a minority owner alongside Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) and the DeVos family, owners of Amway, a major health and wellness brand.
Furthermore, in September, New Mountain expanded its footprint by acquiring operations in France, Spain, and Belgium. The firm already owns several other territories, including Ireland, Switzerland, and the United Arab Emirates. Meanwhile, in the UK, London-based private equity firm Cinven controls Grant Thornton UK, as well as its German operations.
Industry Dynamics and Market Trends
Australia’s professional services sector is undergoing substantial transformation amid government austerity measures and a focus on core functions. This shift has led to divestments of certain units, such as PwC Australia selling its restructuring team and government-related operations. The influx of private equity investment further accelerates these changes, offering opportunities for growth and innovation in the sector.
The trend of private equity investment in accounting and advisory firms also fosters increased competition. For instance, BGH Capital’s backing of a new consulting firm led by ex-PwC partners Rob Silverwood and Sanjiv Jeraj exemplifies efforts to attract talent and expand market share, often challenging the dominance of larger firms.
Conclusion
While Grant Thornton Australia maintains a stance of confidentiality regarding its negotiations, the ongoing interest from private equity underscores the evolving landscape of the professional services industry. The potential acquisition or partnership with Grant Thornton US marks a noteworthy move amidst a period of sector-wide change, driven by strategic investments, technological advancements, and shifting market dynamics.
As these developments unfold, industry stakeholders and clients alike will be watching closely to understand how these strategic moves will influence the competitive landscape and service delivery in Australia and beyond.
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