Talking Tax Grant Thornton Leader Leveraged PE Deal to Raise Audit Bar
Nov 5, 2025
Ron Messenger, CEO of Grant Thornton's audit business, shares insights on navigating the firm’s shift to a private equity-backed structure. He discusses the innovative two-part legal framework designed to protect audit integrity while leveraging investment. The conversation highlights the crucial services agreement that outlines governance and resource sharing. Ron emphasizes the importance of maintaining high audit quality amidst profit pressures and the role of regulators in safeguarding independence. His advice to firms considering outside capital focuses on collaboration and strategic planning.
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Two-Part Corporate Structure
- Grant Thornton kept its audit partnership 100% partner-owned while private equity invested in a separate advisory entity.
- The audit firm leases people and services from the PE-backed advisory firm under a services agreement to preserve independence.
Contractual Protections Boost Clarity
- The services agreement specifies minimal acceptable standards and defines what support the audit practice receives.
- Messenger says these provisions can be more robust than the prior partnership negotiation model.
Lock In Continued Investment
- Build explicit provisions ensuring continued investment in technology, training, and innovation for audit quality.
- Use the agreement as a signal to regulators and the market that the audit platform is sustainable.