PWC thought about EY-style split – and thought better of it
Outgoing PWC UK chairman Kevin Ellis said his decision not to split the firm paid off during the pandemic
The head of PWC’s UK operations has stuck by the firm’s decision to keep the firm together despite other members of the elite accountancy family changing tack.
Kevin Ellis, senior partner for PWC’s UK & Middle East divisions, told The Times today that: “Being a multi-disciplinary firm, having a deals business alongside an audit business, gave us financial stability.”
He added that it gave PWC an “à la carte, not a set menu,” approach for how it can offer services to clients.
His words come as the advisory division of the group, which is bidding 60-year-old Ellis farewell this year as per company policy, is facing a drought of business as companies cut budgets for costly corporate advice.
Firms within the big four are finding increasing challenges in serving clients due to their size – with many possible contracts also running into conflict of interest issues.
EY tried to fix the disconnect in late 2022 by breaking up into smaller parts.
The plan, known as Project Everest, involved breaking up EY’s audit and consulting divisions and would have constituted the biggest-shake up in the accountancy sector in over twenty years.
However, after several delays and $700m (£554.27m) in additional debts for its efforts, the group axed the plan in April last year.
Ellis said the decision to choose to keep PWC together, which came early on in his tenure at the top of the UK group, was eventually vindicated during the coronavirus pandemic when audit revenues boosted the firm’s earnings and the consulting business saw a boon from the post-pandemic deal-making bonanza.
As the 1057-strong partner group of the firm is set to elect Ellis’ successor, rival professional services major EY’s incoming global chief executive Janet Truncale is set to start her new position in July.
