Deloitte Grabs Andersen Tax Practice, Other Offices Sold as Well

Big Five firm Arthur Andersen LLP, fighting for its life in a Houston courtroom, took time late last week to announce that approximately 2,000 professionals, including nearly 200 partners, all members of the firm's U.S. tax practice, will join Big Five rival Deloitte & Touche immediately. The terms of the deal have not been disclosed.

Previously, Big Five firm Ernst & Young and leveraged buyout firm Fox Paine & Co. have expressed an interest in acquiring some or all of Andersen's U.S. tax practice. In total, before Andersen announced a firm wide layoff of 7,000 U.S. employees, the Andersen tax practice consisted of 450 partners and about 4,000 staff.

Andersen also announced it has closed a transaction to transfer the firm's audit and tax practices in Pittsburgh to Big Five firm Ernst & Young.

KPMG has agreed to hire Andersen partners and employees in Seattle, Salt Lake City, Portland, Ore., and Boise. The agreement with KPMG involves 411 Andersen personnel.

Earlier last week, Andersen announced that Ernst & Young will acquire Andersen's offices in Detroit, Ann Arbor, and Grand Rapids, Mich., and Toledo, Ohio. The transfer includes 159 Andersen personnel, including 14 partners and principals.

Andersen partners are reporting that they are paying Andersen $100,000 to $150,000 for the right to go to other firms and take clients with them.

Andersen: The Story So Far

Andersen: Updated List of Client Defections

Andersen Worldwide Network: Who's Going Where?

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.