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Viewsroom

EY’s failed split raises stakes for Plan B

Viewsroom

Reuters

News

4.458 Ratings

🗓️ 27 April 2023

⏱️ 15 minutes

🧾️ Download transcript

Summary

The Big Four professional services firm called off a plan to separate its audit and consulting arms. In this Viewsroom podcast, Breakingviews columnists discuss what went wrong, the implications for its rivals, and the pressure on EY bosses to show the intact business can thrive. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt-out of targeted advertising. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:29.9

The views expressed on this podcast are those of the participants, not of Rojers' News.

0:39.3

That regulatory landscape that was turning and we felt was more in favor of a transaction

0:45.1

such as this.

0:46.4

And secondly, our own need for additional capital to support the growth and the transformation

0:50.8

of the business meant that it was an appropriate time to sort of

0:54.4

dust down the work we did before and evaluate it. And this time we concluded there was a case

1:01.0

for putting this to the shareholders, our partners, to actually vote on it.

1:05.7

That was Andy Baldwin, global managing partner of EY, speaking to Breaking View's Exchange podcast last year

1:13.9

about the merits of a breakup of the Big Four accountancy giant. Fast forward five months

1:19.8

and the split is off. The implications of that failed separation is the focus of this week's

1:25.5

Views Room. Welcome back to the Views Room, a podcast from Wooder's separation is the focus of this week's views room.

1:33.1

Welcome back to the views room, a podcast from Reuters breaking views where columnists from around the world talk about the big stories of the week. I'm your host, Amy Donnellon.

1:40.5

This week, Peter Tall Larson and I sat down to unpick what went wrong with the EY split

1:45.5

and what options senior leaders in the accountancy firm now have. Take a listen.

1:57.4

Hi, Amy, and welcome to the views room. Thank you very much, Peter.

2:02.6

So, Amy, you've been writing a lot for the past few months about the whole EY saga

2:09.0

and the attempt by the big four accounting firm to sort of basically split itself up.

...

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