Grant Thornton “Death Star” Lost In Space After Triple Merger Fail

If at first you don’t succeed, try try again.  That, at least, seems to be the motto at Grant Thornton, known affectionately to its staff as the “Death Star”.  According to our tipster, the firm recently courted three potential acquirers and was rebuffed by each.  Why, we can only guess.  Here’s the tip:

It appears that Grant Thornton has been so desperate to merge with another larger firm that they have tried 3 times, spent (in accounting terms) real megabucks on the campaign but been knocked back 3 times.  A good move say those in the know.

Meanwhile, the tipster reports that the firm is “shrinking alarmingly” and rapidly becoming a much smaller accounting firm.  Says the tipster: “Staff (who can) and clients are rapidly leaving the sinking ship.”  Is it really sinking, or will it soon find itself locked in the tractor beam of a larger mothership?

We sent an email to Lex Melzer (Marketing Director) yesterday.  Say it aint so, Lex!  Actually it looks like the tip was spot on the money:

Fsshhh... you have failed me for the last time!

Thank you for the opportunity to comment.

It’s true that we have had, and will continue to have, discussions with other accounting and advisory firms as well as individuals and teams within such firms. [translation: we are bending over and Assuming the Position] That is entirely commonplace in our industry and consistent with our market and growth strategy. [partner exit strategy = acquisition + retirement]

Over the past few years some of these discussions have progressed to the point where we have been able to welcome new partners into our firm.  [translation: we've made some lateral hires] Over the last 12 months, for example, 6 partners joined us from other firms. We expect this trend to continue. [attempt #4 is now well underway]

Resistence is futile!  And we assume that “trend” Mr Melzer mentioned is not another merger rebuff.  He went on to note that revenue has grown over the last year (though silent on profits), a “testament to the fact that we are serving more clients than ever before” (or serving smaller numbers of clients at higher prices than ever before?).  He closes: “We look forward with confidence to building on this solid platform in the year ahead.”  Solid platform indeed.

Stormtroopers: air your views!

Grant Thornton "Death Star" Lost In Space After Triple Merger Fail, 3.8 out of 5 based on 13 ratings