The UK’s premium accountancy firm Deloitte plans to sell its UK restructuring division amid the Covid-19 pandemic, media reports said. The big four accountancy firm’s decision comes at a time when many global banks are scrambling for profits.
It is reported that the banking giant has been in talks with the executive which operates its restructuring unit to discuss potential backers of a management buyout. The deal has the potential to generate a hundred million pounds.
The company which handles one of the leading restructuring businesses in the UK has started to explore the possibility of a management buyout in conjunction with the division’s leadership team from the past few weeks.
The development is expected to be completed in the next few days. Deloitte currently employees 30 partners and 350 people in total. The restructuring unit handles insolvencies, corporate restructuring and accelerates sale processes.
The company’s consulting revenue slumped when corporate clients slowed down on their discretionary spending. Deloitte’s 700 UK partners’ profits soared more than £880,000 in 2019 which marked its biggest payday in a decade.
EY, KPMG and PricewaterhouseCoopers have seen a dip in its consulting revenues as corporate clients have slowed down on their discretionary spending.
The company has deferred employee benefits such as bonus, awards and promotions for several months due to the pandemic.
The bank demonstrated strong performance prior to the pandemic.