EY calls in Rothschild to advise on break-up plans
EY has drafted in Rothschild to advise on its $80bn break-up, City sources have suggested.
As first reported by Mark Kleinman for Sky News, the British arm of the accountancy behemoth has brought in Rothschild to advise on the implications of a splitting its audit and consulting businesses.
Sources have suggested that the move could extend to parts of EY’s European network.
A formal announcement about the plan is expected in the coming weeks, which will be based on the vote of the firm’s near 800 partners.
As previously reported by Morning Wire, partners could be in line to receive windfalls worth $8m (£6.5m) each, if the accountancy firm pushes ahead.
The ambitions could see EY float its consulting business on the stock market, with a view to raising $10bn by selling off 15 per cent of shares in the new advisory firm, according to documents seen by the Wall Street Journal earlier this year.
A further 70 per cent of shares in the consulting business will be given to the consulting firm’s partners, while the remaining 15 per cent will be reserved for stock awards, which for the most part will be paid out to staff.
Distribution of shares would in turn see each partner given shares worth seven to nine times their annual salaries, meaning the firm’s consulting partners could receive windfalls of up to $8m each.
EY declined to comment.