Actually I’m not 100% on that. I’ll be having a few pints with the nearly partner Sunday so will find out. You’d imagine that New Mountain Capital investment is being used to sweeten them in giving up their current partnership share.
I’d say the Scot has made out like a bandit here. I would have known him well once upon a time a decent enough fella…wouldn’t have had him down for the absolute genius that he clearly is all the same
The 45 equity partners are getting 6.5m each. The 25 salary partners are getting SFA.
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The equity partners might treat them to a celebratory pint in the Ferryman.
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Ouch. Plus I assume there’s a serious dent in future earnings potential of the salaried partners? Will there still be equity there for them to get in the future?
No chance.
I’d imagine a chunk of that is earn-out otherwise you might see a rush for the exit door
60/40 cash to shares according to the Times. On a value of €480m I can see where that guess of €6.5m comes from.
They’ll have to be paying more than those 40 odd though or there would be loads walking out.
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Below partner level they got some equity not massive but enough to keep them there for now is what I was told
They’d have to do something like
What is the Ebidta for GT Ire?
Definitely an earn out.
Definitely equity for partners and down as far as directors I’d say.
Multiple of 12 according to the Times.
I suspect there’s a small number making out like bandits. A few in the middle where they are probably getting what is essentially an advance on the future profits of the advisory business to compensate for their loss of the share of those profits and then they salaried partners and pipeline who got stuffed.
@Appendage can you check the latest Transparency Report for GT? 45 equity partners seems way too low. I thought they had closer to 70.
Apparently it’s not an even split of that dough between equity partners, there is a few levels to it. Partners at top level will get in excess of 10m. They’ll get 60% upfront and roll 40% into the new entity which will prob be sold again in 5 years.
If the dynamic of a typical large accountancy like that is for the mid-level staff to break their hole chasing a partnership - is that disrupted now?
I suppose I’m asking if everyone is as delighted with the deal as the lads who are making out like bandits and how might that lay out from here?
I think the next step in the development of LinkedIn, to make it entertaining & usable, is for people to comment under announcements like this from GT & GT partners.
“Ooofffttt. Partnes making out like bandits & pulling up the ladder behind them. There must be absolute murder behind the scenes there.”
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You’d imagine there’ll be a whiff of cordite in the air at the forthcoming coming Christmas lunches - as partners in other firms seethe at their corporate buddies success
What’s the PE growth strategy with GT - do you not risk losing all your next generation talent to other firms who can offer seven figure partnership incomes.
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I suppose it’s no different to an Accenture or another consulting firm who are listed.
They are free from the regulatory burden of audit. Automate more work and consolidate vs. smaller competition. Then float the thing.
I suspect though that it won’t really be all that successful for everyone (it could work for one or two mid tier). The USP of these firms is local relationships and one stop shops. You can incentivise these for staff to a degree but I’m not sure how you could stop a tax partner leaving with their book of clients. Nobody gives a fuck if you are automating tax, it’s real money on the line that people don’t want to mess with.
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