Grant Thornton Bharat Explores Stake Sale or Merger Options, Eyes Over $2 Billion Valuation

Grant Thornton Bharat, the Indian arm of Grant Thornton International Ltd., is exploring significant strategic moves, including the possibility of selling a minority stake or merging its operations, possibly with its US or European entities. This evaluation is driven by opportunities to align with Grant Thornton's global private equity-backed platform or to directly raise private equity capital. Vishesh Chandiok, head of Grant Thornton Bharat, confirmed these discussions are underway, noting interest from buyout firms in the professional services sector.

Preliminary talks have begun with New Mountain Capital, a current backer of Grant Thornton in the US, and Cinven, which has invested in the European business. Grant Thornton Bharat is targeting a valuation of over $2 billion for any stake sale or merger, with the Indian entity expected to retain the largest shareholding in a merged structure.

These strategic evaluations are part of the firm's ambition to become a global leader in accounting and consulting services, aligning with India's goal of fostering domestic firms capable of rivaling the established "Big Four" – Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers. Grant Thornton Bharat provides a comprehensive suite of services, including tax, regulatory, advisory, and auditing, and employs over 12,000 people across 28 industries.

Impact

This news could lead to significant restructuring and investment in India's professional services sector. A successful stake sale or merger at the targeted valuation would signal strong investor confidence in Indian professional services firms and could attract further private equity interest. It may also intensify competition among accounting and consulting firms in India. Rating: 7/10.

Difficult Terms:

• Minority Stake Sale: Selling a portion of ownership (less than 50%) in a company.
• Merger: Combining two or more companies into a single new entity.
• Private Equity (PE) Capital: Funds invested by private equity firms into companies that are not publicly traded.
• Buyout Firms: Investment firms that specialize in acquiring stakes in other companies.
• Big Four: The four largest professional services networks globally, offering audit, consulting, and advisory services: Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers.
• Valuation: The process of determining the current worth of an asset or a company.