KPMG Consulting Goes Public

KPMG Consulting, a breakaway company from KPMG, which was formed last February, has announced an initial public offering. The company plans to offer 324 million shares of stock, which are expected to sell for between $6.75 and $8.75 per share.

The consulting company will receive proceeds from about 89 million shares (valued at over $660 million), while KPMG and its partners will receive the proceeds from about 235 million shares (valued at approximately $2.5 billion). Within five years the KPMG partners are expected to have completely divested themselves of stock ownership in the new company and will not hold any positions on the consulting company’s board of directors.

KPMG Consulting was formed primarily to assist companies with Internet strategies.

The announcement comes at a time when the Securities & Exchange Commission is looking closely at the consulting services performed by accounting firms and analyzing the potential conflict between these services and auditing services performed for the same clients.

KPMG has been publicly outspoken about its reluctance to support SEC regulations to limit consulting services performed by audit firms. However, the firm contends that the separation of its own consulting services is not a direct result of the potential SEC regulations.

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...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.