After about six months of negotiations, PwC confirmed this afternoon it will acquire 22 of PPB Advisory's 33 partners, and the majority of its 280 staff, by 1 August this year.
The deal includes partners and staff from PPB Advisory’s management consulting business, Litmus Group.
PPB Advisory specialises in restructuring services, including forensic investigations and insolvency services. Litmus Group focuses on customer experience services, including performance improvement.
For the staff who will be not be making the transition, they were either not offered positions or elected not to join PwC.
The deal, which from concept to finalisation took about six months, had the overwhelming support of the PPB Advisory partnership, according to its chief executive Daniel Bryant.
“There is a high degree of excitement among partners and staff about the opportunity this brings, as well as with clients we engage with on a regular basis,” Mr Bryant told Accountants Daily.
For PwC, the move signals intentions to significantly up its presence in corporate restructuring in an increasingly competitive market.
“It’s very competitive and that’s why we see that if we take the magic of this merger and put it together with ourselves, we have world class, leading expertise. We think that is our differentiator,” PwC chief executive Luke Sayers told Accountants Daily.
Client expectations are evolving in the insolvency market, Mr Sayers said, prompting this response from the big four firm.
“This transaction reflects the changing landscape in the insolvency and restructuring markets with a shift away from banks directly appointing receivers and liquidators, to companies adopting a direct partnership model, appointing consultants to help restructure the business,” he said.
“The need for businesses to be agile and move quickly to respond to changing market forces has never been higher. In response, boards are increasingly appointing advisers to help them restructure and rightsize their business for the future and ensure they are on a sustainable, competitive footing,” he said.
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