E&Y May Divest its Consulting Business

Posted by accountingweb on Dec 7 1999 156 printer friendly

Could Ernst & Young be following in the footsteps of Big 5 rival Arthur Andersen when it spun off its consulting arm to Andersen Consulting?

Today, E&Y announced it may sell its consulting business to Cap Gemini, a European services firm based in Paris.

Reports suggest that the combined revenue for the two entities would total more than $8.5 billion, not to mention untold more revenues in future consulting services.

Analysts are speculating that the split may be difficult given its integration with E&Y's accounting practice. However, a merger instead of a sale may help alleviate the situation.

Voice of the Editor

Even though any accounting auditor would tell you it seems like there are an awful lot of tax accountants out there, surely one-third of the country isn't made up of tax preparers, so it's rather startling news to learn that one-third of Americans like to do their taxes. Who knew?

This Week on AccountingWEB

Bill Walter of Gross, Mendelsohn & Associates and Harold Gaar of TravisWolff LLP weigh in on mobile technology use while employees are at work.

WestArk RSVP and Fayette County Community Action Agency – organizations that received grant funding through the IRS Tax Counseling for the Elderly (TCE) program – spoke with AccountingWEB about how they assist senior citizens in their communities.

CPA Robert Raiola, who heads the Sports & Entertainment Group of Fazio, Mannuzza, Roche, Tankel, LaPilusa, LLC, talks NFL player income taxes with AccountingWEB.

Retiring KPMG Centennial Professor of Accounting at the University of Texas at Austin McCombs School of Business Robert May, PhD talks with AccountingWEB about his rewarding forty-three-year career.