Please see below selected recent intelligence about EY.
- EY is to launch a next-gen predictive analytics hub to help consumer products and retail companies unlock growth. EY announced the launch of its Commercial Analytics Services Hub (EY CASH). This cloud-based analytics platform helps consumer products and retail (CPR) companies accelerate growth by predicting consumer choice to inform key decisions.
- Society Consulting, a US-based analytics and big data consulting firm based in Seattle, has joined the US affiliate of Ernst & Young. Society Consulting provides services across the areas of web development, dynamic content strategy, content management, personalization, segmentation and campaign execution. This adds to EY’s other recent digital services acquisitions that includes Seren, NorthPoint Digital, Intuitive Company, Bedrock Consultants, Bluestone Consulting and C3. EY
- EY and OpenText formed a strategic alliance to deliver enhanced enterprise information management approaches. EY announces a strategic alliance with OpenText, a global leader in enterprise information management (EIM).
- Big companies and their outside auditors often have close professional relationships. But now, for the first time, US regulators have taken enforcement action over relationships that became a little too close: it has fined professional services firm Ernst & Young $9.3m for failures including an auditor’s romantic involvement with a client. Investigations by the Securities and Exchange Commission have found that a senior EY partner involved in the audit of a New York-based public company forged an improperly close friendship with the company’s chief financial officer and spent more than $100,000 on corporate entertainment for the executive. Another partner on the team who was auditing a different public company became romantically involved with its chief accounting officer.
- EY announced a new Global Deputy Vice Chair of Advisory Services, Errol Gardner.
- Meanwhile EY promoted 714 new partners worldwide.
- EY launches legal offering in Chile and Argentina and hired a partner from Norton Rose Fulbright in Toronto to lead its Canadian business law team. The accountant has hired Jorge Garnier from Argentine power company Genneia, where he was senior legal counsel, as an executive director to build a team focusing on corporate law.
- EY appointed Andy Baldwin as area managing partner for its Europe, Middle East, India and Africa practices, which include more than 102,000 people across 99 countries. Baldwin is currently the regional managing partner for EY's Financial Services Organisation in EMEIA & will assume his new role on July 1.
- In Ireland, EY announced plans to boost its 1800-strong workforce, adding 270 new jobs across its offices in Dublin, Cork, Limerick, Waterford and Galway. The firm said growth is being fuelled by high demand for cybersecurity and fraud investigation services. 220 of the new jobs will be for experienced hires, with another 50 coming from an increased graduate intake in September. EY has grown its business in Ireland by 16% every year over the past three years, and its workforce has increased by a quarter since 2014.
- In Japan, more than 30 companies have decided to terminate their contracts with Ernst & Young ShinNihon since the accounting firm was punished by authorities in December for signing off on Toshiba's books.
- EY and GE Digital announced a new strategic alliance to develop and provide Industrial Internet of Things (IIoT) services to help industrial companies achieve increased productivity from capital assets and processes linked in the cloud. EY and GE Digital will develop and deliver industry-specific services based on GE's Predix(R) cloud-based operating system. The services can help companies reduce operating expenses and increase revenue through improved machine uptime and streamlined industrial workflows. EY, which has been working with GE for more than 10 years, joins GE's ecosystem of global alliance partners, which gives members access to digital tools and domain expertise from across GE. EY will provide its extensive experience in business transformation; IoT, data analytics and IT cybersecurity capabilities; and access to global resources across multiple industries.
- EY announced that Steve Krouskos had been appointed EY Global Vice Chair - Transaction Advisory Services (TAS), effective from 1 July 2016. Based at EY's global headquarters in London, Krouskos will be responsible for leading a team of more than 13,000 professionals worldwide. He will look to ensure the delivery of high-quality services to help organisations achieve their strategic transactions and capital management goals in line with EY's purpose of building a better working world.
- EY announced that Shari Yocum and Niki Lee, co-founders of leading Human Resources M&A Advisory firm Tasman Consulting, had become principal members in the Ernst & Young LLP People Advisory Services (PAS) transactions practice. Most members of the Tasman Consulting team are also joining the practice. Silicon Valley-based Tasman Consulting launched in 2011 with the goal of bringing together professionals with strong corporate human resources and M&A backgrounds to advise clients through the full life-cycle of all types of corporate transactions, including mergers, acquisitions, spin-offs, IPOs, joint ventures and restructurings. Service offerings include due diligence, operations integration, total rewards, organisation design, talent strategy, HR operations and systems, change management, culture services and program management support. The Tasman organisation has consulted on multi-billion dollar cross-border industry-changing acquisitions as well as large and small domestic transactions.
- The EY Centre for Board Matters (CBM) launched a new online resource, Corporate Governance by the Numbers, that will, claims EY, provide timely data topics in corporate governance, such as director elections, board composition, board and executive compensation, shareholder proposals and voting results. These insights come directly from the CBM proprietary corporate governance database, which collects and analyses data for more than 3,000 public companies, and it will be updated on a monthly basis.
- EY announced the launch of its in-house Americas Tax Innovation Foundry, a new services and business accelerator within EY responsible for furthering the next generation of tax services EY firms offer clients. The group will be led by Chirag Patel, who recently joined Ernst & Young LLP along with a core team from Highnote Foundry, a business accelerator and venture capital firm that provided entrepreneur-led business building services to startups and Fortune 500 companies in several complex and rapidly changing industries. Specifically, the EY Americas Tax Innovation Foundry will provide EY firms in the Americas with a systematic approach to address the disruptive forces affecting their clients' tax liability and functions.
- EY increased its paid parental leave policy for new parents to 16 weeks, up from 12 weeks, starting in July. The new parental leave policy is available to men and women welcoming a child through birth, adoption, surrogacy, foster care or legal guardianship. On average, nearly 1,200 EY people in the US, half of which are men, take paid parental leave each year. EY's current US policy offers 12 weeks for new birth mothers and six weeks for dads and adoptive parents. The new policy means EY is the first of the Big Four to equalise parental leave benefits for men and women.
- EY announced a strategic alliance with EMC that will focus on hybrid cloud enablement, data centre network virtualisation and segmentation, enterprise mobility management, governance risk and compliance & cybersecurity services. The two firms have already collaborated on projects such as Insurance Nexus, a strategic technology and services offering helping insurance carriers migrate core insurance operations and support functions to the cloud. As part of this alliance, EY and EMC also announced a new cybersecurity offering, Isolated Recovery, which combines cyber, business impact analysis, resiliency services and technology capabilities to secure company data.
- The EY Foundation is challenging employers to do more to support disadvantaged young people into work, labelling the failure to take more targeted action as ‘socially and economically wasteful’, and saying companies should offer more paid work experience and broaden recruitment criteria. The foundation, a charity set up by EY in 2014 to help young people disadvantaged in the labour market find alternative routes into employment, education or enterprise, was responding to a recent House of Lords social mobility committee report, ‘Overlooked and left behind: improving the transition from school to work for the majority of young people’.The report found that 53% of young people (in the UK) do not follow the ‘traditional’ academic route into work. It said this majority are significantly overlooked in their transition for work by the education system, while the focus on apprenticeships is not suitable for everyone.
- EY and tech company Adobe announced an alliance to expand EY’s digital expertise and web content services to help clients with their digital projects, including web content management. Adobe, a leader in digital marketing solutions, will work with EY to help companies improve profitability and gain competitive advantage through digital transformation programmes. The deal with Adobe will help EY clients to implement large-scale digital services and integrate data from Adobe Analytics into Adobe Experience Manager (AEM) to improve customer engagement across the web, social and mobile channels.
- EY published a weighty tome of global insights on FinTech - the recent edition of its Journal of Financial Perspectives runs to 180 pages, covering a wide range of topics including blockchain, regulation and wealth advice. One of the articles takes an in depth look at the key issues of trust & identity in financial services, and the potential impact of the blockchain. It is based around the results of the InterChainZ research project which looked at potential uses for distributed ledgers.
- EY appointed James Lloyd (ex-AMP & Deloitte) as its fintech leader for the Asia-Pacific region. EY said Lloyd’s appointment (based in Hong Kong) is in line with EY’s global strategy to strengthen its FinTech advisory capability in response to the rapidly growing opportunities presented by new financial technologies and processes. EY’s Asia-Pacific Banking Leader Jan Bellens commented, “James’ background and experience are an excellent fit for us as he has not only worked with start-ups and FinTechs across Asia and Europe, but he has also worked with traditional financial institutions to transform their processes in order to better serve small businesses. This unique blend of first-hand knowledge across the whole spectrum of the financial services industry will be a key asset to EY’s advisory offering to our clients.”
- EY (Australia) acquired Norton & Smailes (Legal) which will now become EY Law - Perth. Norton & Smailes are Tax Lawyers operating in Perth. The 18 partners and staff of Norton & Smailes will relocate to EY offices: two will join as partners, two as directors and 14 others will join at other grades. The acquisition comes after EY's (Canada) Legal Affiliates Egan LLP and Couzin LLP merged to form EY Law LLP and Deloitte (Canada) acquired Conduit Law to form Deloitte Conduit Law LLP earlier in March.
- EY launched four new centres of excellence to help companies in the Asia Pacific region improve business performance and digital transformation. The Singapore based hub will contribute to industry capability development by providing innovative services in digital business transformation strategy, cybersecurity, analytics and manufacturing. EY professionals at the centres will deliver integrated capabilities and industry insights in supply chain strategy; procurement; operating models; risk and finance transformation; and people and organisation change to help companies innovate and improve business performance.
- EY and EMC announced an alliance covering a range of services, including hybrid cloud enablement, data centre network virtualisation, enterprise mobility management, governance risk & compliance and cybersecurity services, including an offering which protects company data from cyber-attacks. This offering, called Isolated Recovery, combines cyber, business impact analysis, resiliency services and technology capabilities from both EMC and EY firms to secure vital company data. The Isolated Recovery offering provides an environment and workflows to stage data in an isolated recovery zone, along with processes for monitoring the integrity of data and procedures for recovery and remediation.
- In the US, EY may pay as much as $35 million to settle a Massachusetts lawsuit accusing the firm of giving bad advice to Bain Capital to invest in India-based Lilliput Kidswear. The 2014 lawsuit claimed that EY's auditing enabled accounting fraud. Based on the false financial statements certified and audited by EY, Bain Capital said it lost $60 million in Lilliput, in which it had obtained a 31% stake in 2010.
- Carao Ventures (Carao) and EY Central America (EYCA) entered into an agreement with the objective to further strengthen and develop startup investment and acceleration activities in Central America, Panama and Dominican Republic ("the Region"). Carao and EYCA recognise that new, skilful and innovative entrepreneurs are emerging more than ever, encouraged by the significant opportunities that the Region continues to offer and the wide range of new technologies that are fusing the physical, digital and biological worlds; transforming entire industries, businesses and lives.
- Business immigration firm Egan LLP and tax law firm Couzin Taylor LLP – both award-winning boutique law firms affiliated with EY in Canada – merged to form EY Law LLP. EY Law LLP’s broad range of legal services includes:Tax law services - assistance with tax planning, controversy and counsel services; Business immigration services - help with immigration matters, including work permit processing, temporary resident visa processing, permanent residence applications and business visitor entries in Canada and the United States and Business law services – support with corporate re-organisations, acquisitions, mergers, and corporate secretarial services.
- EY MENA announced that the team from Forte Consultancy, a privately-owned independent management consultancy that specialises in customer management and analytics, will join EY’s Advisory team across the Middle East & North Africa. The new additions to the Advisory team will bolster EY’s existing capabilities to create the region’s largest businesses dedicated to advising clients around customer experience, analytics, digital transformation and marketing intelligence.
- EY acquired Montesquieu, a Netherlands based financial advisory firm. Roughly thirty advisors will join the advisory practice of EY, for whom the deal is in line with the firm’s ambition to become the market leader in debt advisory, risk management and treasury in the Netherlands and Belgium. Montesquieu was founded in 2003. Prior to Montesquieu, all three founders were active in the treasury world: under their leadership, Montesquieu built a strong track record in the area of financial consulting and risk management. The consultancy firm provides advice to corporations, public organisations and institutional investors, and is in possession of a practicing licence from the Authority for the Financial Markets since 2008.
- EY Japan, penalised for overlooking Toshiba's years of fraud will re-check data from its roughly 4,000 clients by the end of March in a bid to recover customers' trust. Ernst & Young ShinNihon will review submitted documents for any deficiencies or red flags. The firm looks to ensure that there are no problems with its own procedures before work heats up on full-year earnings for companies closing their books in March. Any issues that come to light will be rectified immediately, and the fixes applied in coming audits.
- EY announced its global Analytics-as-a-Service (AaaS) platform, EY Synapse, to accelerate the delivery of analytics-driven insights that businesses can use to compete and operate more effectively. The EY Synapse platform expands EY's analytics managed services capabilities with a flexible technology architecture and framework for clients worldwide. It enables organisations to operationalise analytics-driven insights more quickly and more cost effectively across multiple locations or geographies and combines market-leading and proprietary technologies, advanced analytics capabilities, EY-developed intellectual property analytics assets and deep industry sector knowledge. In addition, EY can help clients with the behavioural alignment required to derive and sustain value by addressing the "human factors" related to organisational changes - such as company culture, organisational processes, and the skills, training, and internal communications and incentives required to drive and sustain value from data analytics.
- EY announced that it had acquired BCRS Associates LLC (BCRS), a tax firm that focuses on the needs of high net worth individuals and family offices of individual high net worth and family office clients. BCRS will now become a part of the Ernst & Young LLP Private Client Services tax practice. The company has one office in New York and according to Linkedin, between 51-200 staff. With the addition of the BCRS team, EY US will further expand its current service offerings of income and estate planning, charitable gift planning and cross border tax compliance.
- In the UK, for the first time, EY pushed KPMG out of the number three slot in the annual Accountancy Top 75 accounting firms survey, hitting annual fee income of £2.01 billion while the top 75 firms in the UK generated a record £12.8 billion in revenues. Annual fee income at the top 75 firms in the UK topped £12.8 billion in 2015, up 7% on 2014 from £11.9 billion, as a flurry of mergers and acquisitions strengthened the leading accounting practices.
- EY Netherlands acquired i3 (Intelligence in Information), a key player in the field of business intelligence, data analytics and predictive analytics. i3's capabilities will be used to enhance and digitise some of EY's audit procedures. i3 has 45 employees in the Netherlands and Belgium.
- In Italy, EY acquired life sciences consulting firm, Keras Strategy, which grew revenues by 20% in 2015.
- EY reportedly appointed five new partners to its fast growing UK and Ireland fraud investigation & dispute services team, in anticipation of revenue topping £100 million this year.
- EY Vietnam announced that it had merged with TNK Capital Partners as part of an effort to bolster service offerings in the transaction advisory space, according to Tran Dinh Cuong, country managing partner of EY Vietnam. The new team will comprise professionals who will focus on: M&A; financial and commercial due diligence; corporate finance strategy; corporate restructuring; valuations and business modelling; infrastructure advisory; post-merger integration and divestiture advisory services. The new move is part of EY's broader growth investment plan in its transaction advisory services line in ASEAN, which has more than 50 partners and 500 dedicated professionals.
- EY awarded US$1m to the winners of its new global recognition programme, 'Better begins with you', which recognises EY people who have found inspiring and impactful ways to bring EY’s purpose – building a better working world – to life. Uniquely for a programme of this sort, claimed EY, the recognition is just the start. Five winners in four categories will receive US$1m between them to further develop the initiatives they are being recognised for.
- EY announced a strategic alliance with SAS to develop and deliver innovative high-performance services across a number of key industry sectors, using SAS’ market-leading advanced analytics platform. The long-term strategic relationship will include market collaboration, co-innovation, and implementation support and enablement activities. Combining EY’s cross-sector experience and the power of the SAS® platform, the alliance will accelerate the delivery of disruptive analytics services that can help organizations achieve greater return on their data.
- EY announced that UMT Consulting Group, an enterprise project portfolio management firm that provides business process and technology consulting services to large corporations and government entities, had joined Ernst & Young in the U.S. With this deal, EY can enhance its acceleration into capital-intensive programs, capability enhancement, and intellectual property for EY’s global strategic alliance with Microsoft Corp. Specifically, the combination will add UMT Consulting’s deep experience in implementing Microsoft’s project and portfolio management solutions with EY’s Microsoft-based platform for driving program and portfolio performance to help clients improve their portfolios and execute programs to realise business benefits. The deal will also build on the relationships EY and UMT Consulting have with Microsoft’s sales teams across its regions.
- Japan’s financial regulator fined EY’s Japanese affiliate ¥2.1 billion over the firm’s failure to identify accounting irregularities at Toshiba which meant the electronics giant overstated profits by some £780 million over at least six years. The fine is the first ever imposed on auditors by Japan’s Finance Services Agency (FSA), which has also banned Ernst & Young ShinNihon from taking on any new business for three months from 1 January 2016. The firm is also required to undertake improvements to its operations, and seven of its certified public accountants are to be suspended for periods of one, three or six months.
- EY announced that Intuitive Company had joined Ernst & Young LLP in the US. Intuitive, an award-winning studio that designs and builds user-focused apps, websites, and software, has been helping large and small businesses transform their brands through enhancing user experiences in order to compete in a fast and ever-changing marketplace. The combined group will be known as EY-Intuitive. EY-Intuitive can introduce user-centric processes to clients—helping them understand not only their end customers, but also exactly how, when and where it is best to reach those customers through improved experiences. Intuitive's understanding of users, combined with EY's experience addressing global business issues, can help clients across all industries create value. EY plans to leverage Intuitive's unique approach to user experience strategy and replicate it in other studios.
- EY acquired a digital solutions agency that partners with some major digital experience players. Ernst & Young LLP bought NorthPoint Digital and will take in its 91 employees. NorthPoint Digital, based in New York City, partners with well-known web content management and digital marketing providers such as Acquia, Adobe, Sitecore, EPiServer, Hippo, Pantheon, Insite Software and Elastic Path. EY officials said NorthPoint Digital architects, builds and implements technology platforms that can power large scale websites, apps and portals across a variety of devices. It enhances EY’s digital innovation services.
- EY's US arm was hit with a large fine by a US court which found it liable for half of a $20 million+ damages in a case that centred on losses tied to the infamous Bernie Madoff Ponzi scheme. The case was brought by FutureSelect Portfolio Management Inc., and concerned the firm's auditing of a feeder fund used by Madoff's elaborate Ponzi scheme which robbed investors of millions. FutureSelect sued EY in 2010 over faulty audits of a Madoff-linked feeder fund, and is now entitled to a slice of the $112m it lost in its investment in the fund, jurors ruled in Seattle state court. The jury ruled that EY was liable for half of the $20.3m damages it awarded.
- EY announced that it had been named "Consultancy of the Year" by Operational Risk & Regulation magazine for its excellence in operational risk management, regulation and risk management services. This is the fifth time EY has received this recognition. "Understanding operational risk is critical for our clients. We are here to help them add value by looking across the firm, front-to-back office to identify hand-off points and dependencies to identify potential weaknesses," said E&Y's Operational Risk solution leader. "With regulation in this area increasing, our global teams are helping clients roll out supportive, internal frameworks and then use the data collected from those frameworks to drive better risk management decisions."
- EY appointed partner Gareth James to head-up its data & analytics practice within its UK and Ireland assurance business, as the firm targets further growth in audit and business assurance services. James joins the firm having spent 18 years at Deloitte, where he had been a UK risk analytics partner since 2011 specialising in and leading on audit and finance analytics. The Big Four firms have steadily built and invested in their data and analytics capabilities following the European Commission's radical overhaul of the large-listed audit market.
- EY announced that the SAP teams from Avenzia AG - a 20-strong SAP consultancy with operations in Switzerland and Germany - had joined Ernst & Young AG in Switzerland. Avenzia has been a leader in SAP S/4 design and HANA innovation, working with leading firms in insurance and banking. The acquisition is the first of its kind for the Swiss EY Financial Services Advisory practice, and it is part of EY’s continued investment and growth in Switzerland and globally. EY plans to grow its global system-enabled transformation services to over 10,000 professionals by 2020, both organically and through continued acquisitions, and has focused on its clients’ finance transformation agenda. This acquisition follows others by EY member firms in related areas, such as InteGRC (a governance, risk and compliance consultancy in the Netherlands), Seren (a UK digital consultancy) and J&M, a leading technical delivery consultancy in Germany.
- EY signed a global strategic alliance with LinkedIn, to “jointly offer services to help more companies around the world use technology, social networks and innovative sales techniques to empower their go-to-market efforts”. The joint offering will leverage social media as an element of building relationships with buyers, EY said, “With the right tools and strategy in place, this platform has the power to build a positive reputation, unearth buried insights and establish key contacts for anyone in a revenue-generating role. This alliance will be reinforced by EY’s commitment to use LinkedIn’s Sales Navigator tool."
- EY launched People Advisory Services, an integrated practice combining 10,000 practitioners from Tax and Advisory to deliver “insight and innovation on people, organisational and compliance issues”. It will operate in 76 countries and is aiming to double its revenue from the sector to US$3bn by 2020.
- In India, EY formed a strategic alliance with Ebix, which provides software and e-commerce services to the insurance, financial and healthcare industries. The relationship draws from the common belief in the power of digital solutions in bringing about a transformative change in businesses that will result in better returns to both the customer and the enterprise.
- AJ Galdeano Consulting joined Ernst & Young, the EY member firm in Brazil, to expand its tax services, focused on accounting compliance and reporting as well as business process outsourcing. AJ Galdeano’s capabilities span accounting, treasury, tax and payroll functions to complement EY services offered across the Americas. AJ Galdeano will become part of the EY Brazil Global Compliance and Reporting team, adding 61 professionals in Sao Paulo and Rio de Janeiro while continuing to serve its 34 legacy clients including public companies, large multinationals and fund management firms.
- A key cybersecurity partner of EY, US-based iSIGHT, is expanding its Australian presence. It plans to double its Australian headcount (of 10) within six months, after opening its first office in September. iSIGHT will be hiring for research, analytical, sales support and channel management roles. ISIGHT’s intelligence products can be integrated with third party offerings and the firm says it is currently tracking over 70,000 ‘threat actors’ in 17 languages using “signals intelligence, open-source intelligence collection and feet on the street”.
- EY failed to serve as a gatekeeper for a Washington investment firm that sank millions of dollars into Bernard Madoff’s investment firm and should be held liable for its losses, the firm’s lawyer told a jury. “I’m going to prove to you that Ernst & Young had a job. I’m going to prove to you that Ernst & Young didn’t do their job,” said Steven W. Thomas, a lawyer representing FutureSelect Portfolio Management Inc. Court papers show FutureSelect, of Redmond, Wash., invested approximately $200 million in feeder funds that pooled investors’ cash and funneled it Mr. Madoff’s way, until his arrest in 2008 exposed a massive Ponzi scheme in which investors lost some $17 billion. In 2010, FutureSelect, which lost all of its investment, filed suit in a court in Washington state against Ernst & Young, one of the feeder funds’ auditors, alleging negligence and seeking to recover millions of dollars in losses.
- EY’s French firm announced the acquisition of analytics and big data consultancy Bluestone Consulting for an undisclosed sum. The deal is the third the firm has done over the last two years to build up its data analytics capabilities and its combined team now comprises more than 130 data scientists - more than any other firm in France. French-based Bluestone, which was set up in 1996, provides data visualisation and statistical engineering techniques and expertise to business operations in marketing, finance and risk. According to EY, the acquisition will “bring cutting-edge analytics tools to clients across Europe, the Middle East, India and Africa to transform complex business data into actionable insights and drive competitive advantage”. Services on offer include using data analytics to “uncover opportunities, address challenges, improve financial and business performance, optimise production facilities and anticipate and manage risks”.
- EY UK revenues broke through the £2 billion barrier, with an 8% increase in fee income growth for the year ending July 2015. Partner profits dipped as a result of a record number of new equity partners joining the UK partnership. Revenues hit £2.010 billion, up from £1.868 billion in the previous year. Distributable profits increased by 6% from £412 million to £437 million. The growth over the last 12 months sees EY move into number three position in the Big Four ranking in the UK, although KPMG does not release its results until December. With 95 new equity partners joining this year, and 68 partners admitted last year, the average distributable profit per partner for this year was £700,000, down 3.7% from £727,000 in 2014.
- EY continues to bounce around the Source White Space quality rankings table due to the high variability of its content. While Source saw no outstanding content (scoring 12 or more points under our rating criteria), itcould point to examples in this sample that sit everywhere from ’a good piece of thought leadership’ to ’this could actually be detrimental to the brand’. In the former, more positive category is "This isn’t about “fixing” our women!", which explores the impact of the firm’s own female-specific leadership programme. Written in an engaging style incorporating hard data and more qualitative viewpoints, this report is likely to inspire other organisations as well as send out a strong, positive message about the culture at EY.
- Deloitte’s new global CEO, Punit Renjen, visited the Australian firm. Renjen was particularly bullish about Deloitte's growth prospects in India and Africa. Deloitte is late to the party on regional collaboration and international consistency. However, EY is the trailblazer in this field, having spent the last four years pursuing a regional integration model, encouraging staff to think less about their own country patch and more like multinational clients who want seamless delivery worldwide, and to tap the best expertise regardless of its physical location.
- EY Australia has moved to acquire the business of leading Canberra professional services partnership Kazar Slaven. The acquisition will make EY one of the largest restructuring advisors in Canberra. EY Transactions Leader Julie Hood said the addition of the Kazar Slaven team to EY, including founding partners Henry Kazar and Michael Slaven, was part of the firm’s strategy to extend its capabilities in corporate restructuring across Australia.
- EY plans to invest hundreds of millions of dollars in acquisitions in SA and the rest of Africa over the next five years as it looks to grow its business and develop new skills. Over the past few years, EY has invested about $100m in acquisitions, office infrastructure and skills development. EY Africa CEO Ajen Sita said the capital to be invested over the next five years would be more than $100m, but could not give a specific figure. "From an Africa perspective, we will deploy about 40% of all our investment capital in SA and 50%-60% outside in countries like Kenya, Nigeria, Ghana and Mozambique". EY, which operates in 33 African countries, does business in tax, auditing, advisory and transactional advisory services. EY will target advisory businesses and supply-chain consulting. Recently the company announced it had acquired IZAZI Solutions, which provides technology solutions in the financial services space. It was EY’s fourth acquisition in its Africa practice over the past three years.
- EY’s global revenues grew last year at the fastest rate since 2008, driven by growth across all of its four service lines and geographic areas. Global revenues grew 11.6% to $28.7bn in the 12 months to June 30, EY announced. Mark Weinberger, global chairman and chief executive officer, said: “The real reason we feel so good about it is it’s very balanced growth.” All of EY’s four main service lines surpassed the previous year’s growth. Advisory was up 17.6%, boosted by cybersecurity; Assurance grew 8.1%; Transaction Advisory Services was up 15.5% - helped by an increase in mergers and acquisitions activity; and Tax grew 10.3%.
- A strategic alliance between EY and Los Alamos National Laboratory will allow EY to offer Los Alamos’ unique behavioural analysis cybersecurity tools to respond and quickly counter attacks. An announcement stated, “The alliance comes at a watershed moment when increasingly sophisticated cyberattacks are inflicting significant economic, social and even political damage to US organistaions. The tools developed by Los Alamos and delivered to the private sector exclusively by EY LLP can help counter these threats by detecting them before they do deep and lasting damage". “We are very excited to be working with Los Alamos as part of our overall mission to transition their heritage of national cybersecurity and innovation to the private sector, and arming our clients with the most advanced tools and resources to combat cyber-threats, added the EY Americas Advisory Vice Chair. "This collaborative approach is reflective of our global strategy to help organisations manage cybersecurity better and doing our part to build a better working world.”
- EY is expanding its portfolio of services to include legal advisory. Weinhold Legal and EY have integrated effective as of 1st September, 2015. "With a team of more than 40 legal professionals now available to our clients, we believe the unique integration of EY’s advisory practice with the legal expertise of Weinhold Legal will mean we can continue enhancing the quality of our services. We intend to make full use of the potential our collaboration holds and provide clients with services unparalleled in their scope and expertise,” claimed Magdalena Soucek, EY Managing Partner for the Czech Republic and Central and Southeast Europe.
- EY announced a strategic business relationship with Hortonworks, Inc to provide new data management offerings that leverage and extend Hortonworks Data Platform, together with EY's data and information management services. The alliance comes at a critical juncture as today's data driven organisations are looking to leverage newly available data (structured and unstructured) to gain better insights and increase operational efficiency, improve profitability and reduce costs, ultimately with a goal of obtaining a competitive edge in the marketplace. The core of the relationship between EY and Hortonworks focuses on the vast number of organisations that are currently leveraging or plan to leverage Hadoop for their complex data storage needs and EY's ability to help address key business and technological considerations.
- EY announced the acquisition of IZAZI Solutions, a leading technology enabled business solutions provider, primarily in the financial services sector. EY is committed to accelerating the growth and development of its advisory and consulting capabilities through the deployment of its significant investment plan. To this end, EY has completed four acquisitions in the last three years with the Oracle Advisory business, 8th Man Consulting, being the most recent acquisition in July 2014. IZAZI Solutions employs in excess of 200 people and has offices in South Africa, Australia, Canada and New Zealand. They join EY’s 45,000 Advisory consultants globally and will play a leading role in delivering IT products and solutions to business and government across Africa.
- EY UK acquired Seren, a 60 strong digital consultancy. Seren works with firms across a number of sectors, in particular, telecoms and financial services. The acquisition is the first of its kind for the UK Advisory practice and it is part of continued investment and growth in the UK and globally. EY has plans to grow its global strategy consulting services to over 2,500 professionals by 2020, both organically and through continued acquisitions, and has progressed this rapidly already with a particular focus on its clients' digital transformation agenda. This acquisition follows others in related areas, such as Bedrock (a service design boutique in North America), Parthenon (the US/UK strategy consultancy) and Sweeney, a leading customer insight consultancy in Australia.
- EY UK is to remove academic qualifications from the entry criteria for the firm’s 2016 graduate, undergraduate and school leaver programmes, in a bid to develop a ‘level playing field’ for candidates and encourage greater social mobility. Students will no longer be required to have a minimum of 300 UCAS points (equivalent to 3 B’s) and a 2:1 degree classification to make an application. Instead, EY will use a new and enhanced suite of online ‘strengths’ assessments and numerical tests to assess the potential of applicants for 2016. The decision comes after an 18-month analysis of the firm’s student selection process by talent management firm Capp, which confirmed EY’s strengths based approach - used in the recruitment process since 2008 - is a robust and reliable indicator of a candidate’s potential to succeed in role.
- EY Global launched a health consultancy practice to help clients manage costs and improve efficiency. In a statement, firm said that healthcare around the world is being disrupted by unsustainable cost inflation and the rapid rise of digital health technologies. As such the new practice aims at helping clients leverage technology to deliver digital health solutions and use big data and analytics to improve health services management and health outcomes. The new practice will be headed by global health sector leader Jacques Mulder who previously served as EY global industry and market strategy leader.
- EY US acquired Mycroft, a leading provider of cloud-based identity-as-a-service (IDaaS) and identity and access management (IAM) services. EY says the deal will expand its ability to help clients safeguard corporate assets from the increasing threat of cyberattacks by supporting secure access to critical applications and data. EY will immediately go to market with a cloud-based IDaaS and IAM managed services offering. This US acquisition is the latest in a series of cybersecurity deals by the firm, with $20 million earmarked for EY’s recently-launched Managed Security Operations Center (SOC), a global initiative designed to provide 24/7 tools and support to secure businesses around the world. The Mycroft team will join EY’s global cybersecurity group, which the firm expects to increase by 600% through 2020.
- In Canada, EY’s Transaction Advisory Services practice acquired specialist operations management and due diligence consulting firm, Stratmark. Founded over 14 years ago, Stratmark specialises in leadership and strategic operations management intervention. Applying Cartesia methodology, among others, Stratmark quickly became the benchmark for operational due diligence, singling itself out from traditional consulting firms with its field intervention and execution capabilities and network of specialised associates.
- EY appointed Jeff Wong as its new global chief innovation officer. Wong was previously the director of eBay’s business incubation group and also has JP Morgan & Boston Consulting on his CV.
- EY opened a Global Innovation Centre in Spain that will focus exclusively in managing and analysing big data in financial services. The investment is a key milestone for EY, which is growing its offering in data analytics and data mining, and is part of the organisation’s US$500m global investment in analytics. The centre is based in Madrid - a European hub for data innovation - but will serve clients across the globe.
- EY and the Risk Management Institution of Australasia formed a strategic alliance, which will see EY become the strategic sponsor of RMIA’s RISK2020 initiative. As part of a 3 year sponsorship, EY will help RMIA develop key initiatives, including a senior leaders forum to promote the value of risk management at senior levels of Australian business.
- An article in Consulting Magazine - July 2015 argued that EY's purpose is considered "the bridge to the new world order" and EY's vice chairman of Advisory services considers that they're "light years ahead of the competition".
- EY announced 753 new partners globally for 2015, an increase of 12% on 2014. 30% of the new partners are women and 33% come from emerging market territories. By service line, Assurance accounted for 42% of new partners, followed by Tax with 24%, Advisory with 22%, Transaction Advisory Services with 10% and Business Support with 2%. Overall, EY increased its global headcount by more than 20,000 to 210,000.
- In the US, EY acquired the systems consulting arm of manufacturing intelligence firm Entegreat Inc. The acquisition is aimed at building EY’s capability in delivering Internet of Things solutions to improve efficiency for clients in manufacturing, production and supply chain. Entegreat will continue operation as a manufacturing software solutions provider.
- EY announced the acquisition of Inwave, a Brazilian company founded by Fabricio Cardoso in 2013 and which provides marketing and technology consulting services and creates custom multichannel campaigns that allow interactions with customers via email, web, social, mobile, and advertising content channels at each point in the chain. The new practice will be allocated to Advisory.
- EY was hit with one of the biggest fines imposed by the UK insolvency regulator over a failure to declare a conflict of interest when it became the administrator of failed Greek company Hellas Telecommunications II. The Institute of Chartered Accountants in England and Wales has said it had fined EY £250k, severely reprimanded the firm and ordered it to pay £95k in costs. EY partner Margaret Mills, the global co-ordinating partner for EY’s restructuring practices, was also severely reprimanded and fined £15k. These measures follow a probe into an alleged breach of accountancy rules, when EY took on the administration of Hellas Telecommunications II and its subsidiary Wind Hellas, less than three years after an EY member firm had been Hellas’ auditor.
- EY acquired consulting firm Integrc, which has operations in the Netherlands, UK, India and UAE. Integrc is a privately owned, leading provider of governance, risk and compliance (GRC) services to companies that run SAP. The acquisition, expected to complete in August, will help cement EY’s position as an industry leader in SAP GRC services by further enhancing its end-to-end offering - from strategy to technology implementation.
- EY and the University of Technology, Sydney (UTS) launched a research & analytics alliance to tackle financial services issues such as cyber-crime, customer retention and risk. The five year agreement will see collaboration across four key areas: joint research projects; learning delivery; collaborating on the design of graduate programs that will support the future needs of financial services organisations.
- See also: .
- EY’s retiring Asia Pacific Chairman, Michael Wachtel, commented on the firm making a change to its governance structure in the region. Wachtel has resigned but EY will not be filling the vacancy. EY will overhaul its governance construct and create a regional partner forum to give equity partners a stronger voice in their local markets. Wachtel said, "It's back to the future, with some tweaks and nuances in the construct. As we become bigger, and look more like a corporate, there is a need to find vehicles to give the partners a voice, separate from executive management." Oceania will have nine seats on the new regional forum, plus an additional three representatives on the financial services forum, which is a separate group."
- EY won nine awards at the International Tax Review European Awards 2015, including European Tax Compliance & Reporting Firm of the Year. Separately, EY also announced that it had earned awards in five categories in the 2015 Association of Management Consulting Firms Spotlight Awards, including Project of the Year. The firm also recorded an unprecedented number of nominations, appearing as a finalist in 10 of AMCF’s 13 designated project categories.
- Still in India, EY plans to increase the team from 100 to 600 of its Financial Accounting Advisory Services (FAAS) in the next few years - see EY to ramp up financial accounting team.
- In India, EY moved to hire 150 lawyers to provide back-end support for its new vertical eDiscovery team, which manages the technical submission requirements for companies on global investigations and litigation. The new employees will be part of EY's forensics team, taking its headcount in India to around 750.
- EY announced a strategic business relationship with Microsoft Corp. to deliver new and innovative services through their digital-age strengths to companies around the world. The services will utilise EY’s practices in analytics, cyber security, digital enterprise strategy, digital and emerging technology enablement, people services, and programme management to deliver new offerings using Microsoft’s cloud and data platforms. The goal is to help customers remove barriers to digital adoption, improve employee experience at work, and maximise companies’ return on their investment in digital technologies.
- EY will pay a $10m penalty for allegedly helping Lehman Brothers hide its precarious financial situation, marking the only legal enforcement action by US authorities so far since the 2008 collapse of the investment bank. The settlement with the New York state attorney-general’s office also reflects the end of major lawsuits against EY related to its work for Lehman, which filed for bankruptcy in September 2008.
- EY announced it would take over predictive analytics firm ISD Analytics - whose platform models human behaviour. All five ISD Analytics staff will be invited to join EY, the firm said. EY declined to provide the purchase price of the acquisition or ISD Analytics' annual turnover.
- EY added 55-lawyer South Korean firm Apex Legal to its legal network, as it looks to expand its footprint across the Asia-Pacific network. The planned 200-strong network of lawyers will span key commercial centres throughout the Asia-Pacific region, and the next step is likely to be in Hong Kong. Talks are also due to start with two small firms in Malaysia. Last year, EY added Shanghai-based law firm Chen & Co and Singapore law firm PK Wong & associates to its network. It also has legal services capability in Vietnam, as well as member law firms in India and Japan.
- EY acquired French deals business Ricol Lasteyrie. The combined firm will have around 300 employees. This merger will take effect beginning in April 2015. The founder is expected to exit the business between 2017 and 2022. Founded in 1987 by René Ricol, Jean-Charles de Lasteyrie and Gilles de Courcel, the company currently has nine managing partners and seven associates. Market leading financial advisor in France, the company also conducts corporate advisory activities, particularly among CAC 40 companies and ETI, and consulting in financing and financial restructuring.
- EY celebrated reaching 1 million LinkedIn followers globally.
- In the coming months, EY in Malta will be opening a Managed Services Delivery Centre (MSDC) to offer a range of specialised risk management services, primarily to foreign clients. The bulk of the MSDC’s workload is expected to relate to projects in the UK as well as mainland Europe. In the first six months of operations, the MSDC plans to hire around 50 professionals in various fields. EY Malta is currently developing a recruitment process designed to select and retain the right people to carry out the MSDC’s commercial mandate. Those who are recruited will be given a rounded and deep immersion in the company’s operations.
- In Australia, EY has reportedly entered into an agreement to acquire C3 Business Solutions for an undisclosed sum. C3's repertoire includes information management, advanced analytics and business intelligence. 11 C3 execs, will join EY as partners, accompanied by around 100 staff. C3's client list includes Qantas, Commonwealth Bank, Energy Australia, and the federal government. The firm currently has offices in Melbourne, Sydney, Canberra, Adelaide, Brisbane and Perth. EY will keep the C3 brand, while the new staff will become part of EY's Asia Pacific advisory practice.
- EY announced it will start actively recruiting former military personnel in the UK and signed the Armed Forces Military Covenant, pledging to be an “armed forces-friendly’ organisation. EY will support the employment of veterans and their families and also employees who choose to become members of the Reserve Forces. according to EY’s head of government and public sector.
- Davos 2015 featured the official launch of the EY Beacon Institute, which will be dedicated to transforming business through the science of purpose. Leading the co-development of the institute with members will be Valerie Keller, EY’s Strategy Executive Director. Additionally, there was a private unveiling of EY global research with Harvard Business Review (HBR) Analytic Services. The research features a survey of 474 business executives and was conducted among the readers of HBR and EY clients. It will be fully available in later in 2015.
- EY's legal team launched in Sweden with the hire of a six member team in Stockholm, including two partners from Swedish commercial law firm Delphi, completing its coverage of Scandinavia.
- EY is building on its collaboration with IBM to help global clients leverage new advanced analytics and accelerate their adoption of technologies. EY will work directly with IBM on joint go-to-market activities and new applications based on IBM’s portfolio of analytics, big data products and cloud solutions. EY will also have access to IBM’s test and demo software catalogue, technical support and training resources.
- EY is looking to companies like Amazon for ideas on how to disrupt its consulting model before disruption is forced upon it, as it moves toward its goal of developing a $15bn advisory business by 2020. When the advisory practice began in 2006, it focused on the developed economies to build credibility but now, as those markets mature, focus is moving to countries like India and so is investment. EY expects 30% of its revenue will come from emerging markets by 2020, and the firm has earmarked $1.5 billion in investment to support that growth across all its different businesses.
- EY, liquidator of the collapsed Scottish property fund Heather Capitals, launched a multi-million pound claim against KPMG, the fund's former auditor. EY alleged in court filings that many of the loans made by Heather to property developers were “a fabrication and a sham.” KPMG said that it will "vigorously defend" against the action.
- EY has been granted a licence by the UK Solicitors Regulation Authority, enabling it to provide legal services in England and Wales as an alternative business structure (ABS). EY is announcing its intention to become an integrated, multidisciplinary practice providing corporate, commercial, employment and financial services legal advice alongside its existing services. EY has already appointed three UK partners, and a further 30 people will be recruited in the next six months.
- In the UK, EY launched a 20-strong team, including accountants, to support businesses pursuing private prosecutions for fraud and economic crime. EY’s head of fraud investigations and disputes, John Smart, said that cases brought by overstretched prosecutors like the Serious Fraud Office can take 4-6 years, while private prosecutions can be much quicker.
- EY acquired Canada-based advisory firm Up Consulting., whose areas of expertise include operational excellence, IT and management consulting, business intelligence, collaboration, mergers and acquisitions, and safety consulting. Former founding partners of Up Consulting, Marc Joly, Michael Miller and John Penner, will join EY Canada as partners. This marks EY Canada’s sixth strategic acquisition since 2011, including Ambir Solutions in 2014; SRED Automation in 2013; Hergott Duval Stack in 2012; portions of RSM Richter in 2011; and OME Group Consultants in 2011.
- EY announced plans to grow its strategy consulting practice to over 2500 professionals by 2020, both organically and through continued acquisitions. EY explained that its consultancy business has made 11 acquisitions across the globe in the last year, with four of the acquisitions specifically boosting strategy consulting capabilities. EY’s global advisory strategy group provides problem-solving capability and issues-based consulting skills in three business areas — Innovation & Digital Enterprise Strategy, Strategic Transformation, and now also Industry & Market Strategy.
- EY acquired CFORS B.V., a Netherlands-based software development company, a Netherlands based software development company focused on providing regulatory compliance requirements for banks and insurance companies.
- The Ontario Securities Commission agreed to a C$8 million settlement agreement with EY over its work for two defunct companies operating in China. The deal marks the first time that a new “no contest” rule is being used by the OSC. Thus, EY neither admits or denies the allegations set out by the OSC in the cases of Sino-Forest and Zungui Haixin Corp.
- EY acquired Roam, an Australian energy market modelling consultancy. EY said the addition of Roam Consulting would boost its power and utilities capabilities.
- EY reported 2014 global revenues of US$27.4bn. Highlights: growth of 6.8% over FY2013 in local currency terms; growth across all service lines; emerging markets practices grow 8.7%; headcount at all-time high of 190,000 as EY ranked #1 world’s most attractive professional services employer, number #2 employer overall. The EY infographic below provides further details.
- Ernst & Young Global Limited agreed to acquire Net Balance, an Australia based sustainability services company. EY said the acquisition will strengthen its advisory services in the areas of sustainability strategy, reporting and assurance, social impact, carbon, energy, health, safety and environment.
- The US Public Company Accounting Oversight Board found deficiencies in 28 of 57 EY audits the board evaluated, a rate of 49%, up from 48% in the previous year. Some of the deficiencies were significant enough that it appeared that EY hadn't obtained enough evidence to support its audit opinions, the PCAOB said. EY said it was "fully committed to audit quality" and that the inspection process "assists us in identifying areas where we can continue to improve."
- EY confirmed that The Parthenon Group - a global strategy consultancy with 300 professionals in offices in Boston, London, Mumbai, San Francisco, Shanghai and Singapore - has joined its network. The deal brings together EY’s market leading growth, world-class brand and global reach with Parthenon’s extensive strategy capabilities across the Global 1000, private equity and education markets. With the combination complete, Parthenon Group professionals and EY’s Investment Strategy practices will operate under the Parthenon-EY brand.
- EY is offering a global collaboration portal, EY Client Portal, with the tag line ”Your 24/7 connection to our people, knowledge and tools” (source@ Project GooD).
- EY announced that its Strategy Consulting Services practice, according to the IDC MarketScape, is seen as the most capable of all organisations at delivering value-creating innovation. The report acknowledged EY’s global reach, its extensive worldwide business network and its successful integration of its organisation to form single management units in its Americas, Asia-Pacific, and Europe, Middle East, India and Africa regions.
- EY agreed to pay more than US$4 million to settle accusations by the Securities and Exchange Commission that it violated independence rules by lobbying on behalf of two of its audit clients. The case involved lobbying by Washington Council EY. The SEC order did not identify the client, and did not indicate that any action had been taken to review the audits, or that the audit teams were aware of the independence violations.
- EY agreed to combine with Boston strategy consulting boutique, the Parthenon Group. Parthenon, with around 40 senior leaders and 300 professionals, was founded by Chairman and Managing Partner Bill Achmeyer in 1991. Parthenon is being acquired, at least in majority part, for its strategic M&A capabilities. EY intends to integrate Parthenon's operations within its Transaction Advisory Services (TAS) practice. Research Note includes MR perspective on deal value; rationale for placing Parthenon within the firm's TAS group; potential for conflicts; and the strategic fit of Parthenon within EY.
- EY opened its second cyber forensics and e-discovery centre in India in Hyderabad,, joining one in Mumbai. The new lab will perform cyber forensic and compliance related investigations for clients in the US, the UK and in India in industries including oil and gas, utilities, pharma and auto.
- EY announced a record number of partner promotions. It promoted 675 people to partner, an increase of 33% on last year and its highest level of such promotions. Mark Weinberger, global chairman and chief executive, said the significant increase in new partners reflected “confidence in the future growth of our organisation and of the clients that we serve”.