EY's global leadership asked its partners to do a 'deep dive' and vote on whether to split the firm.
👉 Background: EY is one of the four large professional services firms around the world, doing heaps of things things like audit, consulting, risk management and accounting.
👉 What happened: Last week, EY’s global leadership asked its partners to do a ‘deep dive’ and vote on whether to split the firm into an auditing business and a consulting businesses.
👉 What else: While the auditing side would retain the EY brand, the new consulting company would likely be floated on the sharemarket.
💡 The big four professional services firms often act in unison, so EY could be the first domino to fall in a potential major industry shakeup.
💡 EY would have a benefit over the other firms because auditors could be able to try to win work from clients that they currently provide consulting services to (and avoid the regulatory concerns around a conflict).
💡Despite all that, the other big four consulting firms Deloitte, KPMG and PwC have all said they are going to stick with their existing model… So we'll have to wait and see.
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