It may be a little known fact that accountancy firms with a corporate finance division can no longer provide non-audit related services, such as M&A advice, on a contingent fee basis as of March 2020.
The M&A industry is built on contingent fees which typically account for 80% to 90% of the fees on a transaction, offsetting the risk for any client and focusing everyone’s attention on completing a successful transaction.
So, if you are currently thinking that the corporate finance team of your incumbent accountant can handle either your exit, a private equity fundraise or an acquisition, well the answer is they can’t and their Ethics Partner will almost certainly have an issue with it.
However, M&A boutiques, like Bishopsgate, who are independent and focus solely on M&A have no conflicts of interest.
This is a huge change for our industry and something that could have far reaching consequences for the Top 20 accountancy firms!
Please do get in touch if you would like a coffee / Teams call to discuss more