Andersen Consulting Looks at $20 Billion IPO
Late last week, the 2,500 partners met in Miami, and agreed to study the possibility of an IPO, or Initial Public Offering, of stock that, if sold, could value the firm at more than $20 billion.
The vast consolidation taking place within the accounting profession is good news for Andersen Consulting, who compete against other consulting arms that have, or will be, spinning off of parent companies. This includes a KPMG consulting IPO, the purchase of Ernst & Young consulting and the recent news that Hewlett-Packard may buy PricewaterhouseCooper's consulting business.
As a result, Andersen Consulting is now valued at more than twice what it was worth in 1999.