Accountancy

Why EY’s split of audit and consulting arms will be messy

Carving up the tax unit ‘will probably be the trickiest part’ of EY’s breakup

EY’s leaders are haggling over whether and how the two firms will compete for the same tax work, people familiar with the matter said
EY’s leaders are haggling over whether and how the two firms will compete for the same tax work, people familiar with the matter said Photo: Bloomberg via Getty Images

Ernst & Young’s tax experts bring in lots of cash and are highly valued by the firm’s clients. Many members of the 70,000-strong group don’t know where they will be working next year, or if they will be competing against each other.

The proposed breakup of EY into a steady firm focused on auditing companies and a faster-growing consulting business has reached the nitty-gritty phase after its top executives approved the split.

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