Interpath Advisory commences life as unbiased enterprise
After being renamed in March, KPMG UK’s previous restructuring practice will officially be implemented as an independent company. Interpath Advisory, backed by private equity, becomes the UK’s largest privately held restructuring unit.
Blair Nimmo, who headed KPMG’s restructuring unit prior to the buyout, said: “This is a significant moment for our company and comes at a time when executives, boards of directors and stakeholders are facing a variety of problems from overcoming financial issues and financial problems address operational stress and stress in order to regain and protect value. “
“As an independent, conflict-free company with an experienced team at the top, we have the freedom to anticipate and react to our customers’ challenges with even more agility. We have already received an overwhelmingly positive response to sales messages from our customers and our employees and we look forward to taking the first steps. “
KPMG’s decision to sell its lucrative restructuring business was due to the significant changes in the bankruptcy and restructuring market in the UK. After the Financial Reporting Council (FRC), the country’s audit watchdog, de facto banned the Big Four from KPMG, Deloitte, PwC, and EY from conducting consulting work for audit clients, the quartet became concerned that the problem would hamper future growth of restructuring activities as long as they are in possession of them – even if the demand for restructuring continues to grow across the UK.
In the end, KPMG paid out in early 2021 after HIG Europe, the European subsidiary of investment firm HIG Capital, brokered a £ 400 million spin-off. At that point it was announced that what would become Interpath Advisory will be led by KPMG UK’s top restructuring partners.
It has now been confirmed that Will Wright and Mark Raddan will join the company’s board of directors with new CEO Nimmo, who jointly led this transaction for over a year.
Raddan commented, “We would like to thank KPMG for their full support during this transaction and we would like to split up as steadfast friends. With the support of HIG and our team of exceptional people, we look forward to continuing to help businesses large and small meet the challenges ahead and ultimately find their right path. “
According to comments made by Nimmo to the Financial Times, the company will now seek to “settle down” in the coming months before “we do and continue this growth,” including a mix of attitudes from individuals and teams from other companies is involved as buyouts.
However, given the size and scope of KPMG, the move has already created the largest independent business turnaround in the UK. Interpath Advisory has initially taken on around 22 partners and around 528 employees in its business activities. At the start, 19 of these employees were promoted, which means that 43 managing directors will be added.
As the company seeks a strong start to its independent life, it has also been announced that John Connolly, former CEO of Deloitte UK and Chairman of the Deloitte Global Board of Directors, has been appointed Chairman of the Board of Interpath. He chairs a number of PE-supported companies, currently including G4S.
Connolly said: “In the highly complex markets that many companies will face in the years to come, Interpath is well positioned to support companies with its broad range of skills and extensive experience. The team is highly motivated to develop the business as an independent company and to occupy an outstanding position in the selected markets. “
It was rumored that Deloitte itself would be considering selling its restructuring wing in late 2020. While the company’s global leadership initially vetoed the move, the continuing saga took another turn in February 2021 when PR consultant Teneo was on the verge of buying the practice for “hundreds of millions of pounds”.