Hey there, consulting enthusiasts! Hope you’re all having a great week so far. Today, we’re diving into the latest M&A news in the industry. It’s been a fairly quiet week, but we’ve still got a couple of exciting updates for you.
First up, US Consulting firm Cradera has made a major move by entering into Germany through a partnership with a local firm. This is definitely an interesting development to keep an eye on. And of course, the big news of the week is the unexpected decision to call off the EY split.
It’s certainly a surprising turn of events, and we’re all curious to see what comes next. Let’s now delve into these in a bit more detail.
#1. US consulting firm Credera enters Germany with partnership
Credera, a business and technology consulting organization based in the United States, has joined the German market, marking the firm’s first foray into the European mainland.
Credera’s entry into Germany is part of the company’s international expansion strategy. Credera, which has offices in the United States, the United Kingdom, Australia, and Asia, has been on a growth trajectory that includes revenue growth, regional development, and multiple recent acquisitions and collaborations.
Credera’s presence in Germany will be managed through a joint venture between Credera and Smart Digital, a German technology consulting firm. The Berlin-based enterprise employs 100 people and is owned by Credera parent company Omnicom Group.
#2. EY calls off global audit and consulting split for the time being
International professional services firm EY has canceled ‘Project Everest,’ a plan that would have divided the firm into accounting and consulting firms in over 100 countries.
EY had announced its split proposal in September of last year, after authorities expressed worries about potential conflicts of interest between auditing and consulting business. EY’s top management also stated that a separate consulting arm would be better positioned to win important contracts at large customers where they are now prohibited from operating.
Project Everest had the backing of EY’s top global leadership team, but the carve-out plan had suffered difficulties in recent months. A number of member organizations stated that they would oppose the idea within their own borders (China and Israel being the most significant examples), as well as partner conflicts in the firm’s US market (which accounts for roughly 40% of EY’s $45 billion in revenue).
In an astonishing strategic shift, EY has now revealed that the proposal has been scrapped, shortly after the US Executive Committee opted not to proceed with the split. “Given the strategic importance of the US member firm to Project Everest, we are stopping work on the project,” EY stated in a statement.
It’s an exciting time to be in the consulting M&A world and we’ve been thrilled to provide you with the inside scoop on all the latest news. With every new deal, rumor and potential implication, there’s something new happening every day.
There are always more deals being forged and companies looking for more convenience from their consultants. We hope you’ll keep up with us as we continue to keep you on top of it all.
From the latest happenings to potential implications in the near future, count on us to bring you everything that matters in this ever-evolving industry. And if we missed out on mentioning any deals, then please write to us and let us know.
In the meantime, its time to sign off now. We will be back again next week with more consulting M&A news for you. Until next time, see ya!