The mid-tier firm has sold its payroll outsourcing business for an undisclosed sum to groupelephant.com. The deal will see the payroll outsourcing business rebranded as Rivor and is expected to be completed during December 2014.
Ian Herman, national managing partner, strategic performance and engagement, at Grant Thornton said he sees the sale as another step in consolidating the firm's strategic positioning as advisers facilitating growth for mid-size businesses.
“The sale of a non-core service offering allows us to focus and reinvest in growth advisory services that better meet the changing needs of dynamic mid-size businesses. At the same time, the sale to groupelephant.com ensures that our payroll outsourcing clients remain in the hands of a market-leading specialist in the human capital management,” said Mr Herman.
“We felt we could service our clients better through an alliance, rather than providing that service ourselves, to allow us to spend more time on developing the IP and delivering insights to our clients."
Mr Herman told AccountantsDaily that Grant Thornton’s clients predominantly engage the firm for assistance growing their business and the payroll side has been more of a supplementary non-core part of the practice.
“For Grant Thornton, it’s vitally important that we continue to build our advisory and analytical capacity so that we can provide even greater insight as to how mid-size businesses can best unlock their potential for growth.
“Our clients, especially in mid-sized businesses, are looking for a relationship to be able to help them grow and develop and that’s where we are going to invest more."
Mr Herman said he does not expect the firm to offload any more businesses in the near future, and [it will] look instead at expanding on existing core services.
“We are really comfortable with the core group of capability that we've got. We are in fact looking at expanding some of those capabilities,” Mr Herman said.