Accounting Firms Advise On Corporate Deals Worth Billions

Accounting firms have probably always been involved in corporate deals but building a presence has taken time, according to Accountancy Age. The Toshiba deal for British Nuclear Fuels plc is currently the largest deal involving any accounting firm, at $5.4 billion.

Mr. Atsutoshi Nishida said in Toshiba’s prepared statement, “It is with pride and pleasure that we will start to work with Westinghouse, a prominent industry leader, in the strategic growth area of nuclear power. With Westinghouse, Toshiba will be a global nuclear power business organization committed to delivering world-class nuclear power generation systems and services, backed up by proven technology, reliability and superb efficiency,” Toshiba’s President and CEO, reported in Toshiba’s prepared statement.

KPMG Corporate Finance was lead advisor for the Japan’s Toshiba Corporation and their staggering deal for British Nuclear Fuel Limited USA Group and Westinghouse Electric UK Limited, according to Toshiba’s prepared statement. Toshiba expects its nuclear power business to expand three times today’s level by 2015 as a result of this acquisition.

Tim Stone was a consultation partner in the Toshiba deal. He said in Accountancy Age, “We always had the ability to lead deals of this size, but it was just a case of a business realising what we can do. After this deal we see ourselves working on more strategically important deals.” He believes that this deal establishes KPMG as a major player in future deals.

Simon Collins, KPMG’s chief executive of corporate finance, told Accountancy Age, “This huge, high profile, cross-border deal is a redefining piece of business for KPMG Corporate Finance. No-one can now say that KPMG Corporate Finance does not compete in the $1bn plus market.”

Other major accounting firms have worked smaller deals.

Ernst & Young worked on the $15 billion leveraged buyout of the Hertz Corporation. The purchase by Clayton, Dubilier & Rice, the Carlyle Group and Merrill Lynch Global Private Equity was the sixth largest deal of 2005, according to CFO.com.

Deloitte advised Vodafone in its $15.2 billion sale of Vodafone KK (VKK) to the Softbank Corporation. Softbank purchased the third largest mobile service operator in Japan in order to facilitate a mobile communications business alliance with Yahoo!Japan, according to a prepared statement by Softbank Corporation.

The Softbank Corporation’s wholly-owned subsidiary, BB Mobile (BBM) Corporation, completed a share exchange in mid-August, making way for a cash delivery to VKK’s shareholder in lieu of the issuance of shares, according to a prepared statement by Softbank Corporation. The cash delivery was the 6th largest corporate deal of 2006, at some $17.53 billion, according to Thomson Merger News.


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