Shaky Ground: The Impact of KPMG Stock Offering

As reported earlier this year on AccountingWeb, KPMG filed for a potential IPO last May to fund its technology consulting practice, and is now in the midst of negotiating terms for the offering with Morgan Stanley Dean Witter.

What is the impact of such an offering? While KPMG hopes to raise $2.5 billion, analysts are skeptical that Wall Street will receive the stock sale with open arms.

First, buyers have to get past the often-perceived stodgy mindset associated with a Big 5 firm. Even though the IPO is for the technology practice, analysts predict that there may be some confusion as to what buyers are purchasing at the time the IPO begins.

Second, the SEC's auditor independence hearings continue, and again, analysts remain skeptical as to the timing of the IPO: is this meant to coincide with a possible ruling against the Big 5 firms?

Still, KPMG's take on the situation is that it must go public or the technology practice will be swallowed up by other companies. To survive means to put yourself on the line.

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

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.