Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Tuesday, 11 October 2011

Ernst & Young being sued over valuation of insolvency practice

Ernst & Young is being sued by the private equity firm Primary Capital, according to The Times, for £8.5m. The claim is that the accountants incorrectly valued its investment into Haines Watts, the business recovery practice which it bougth in 2006 before the insolvency practice entered into a pre-pack administration two years later. It was sold to RSM Tenon.

Without seeing the valuation we cannot comment.  However, many insolvency practices have found the expected increase in business failures has failed to materialize as businesses have been able to cut costs and banks have not moved to put businesses into administration.

No comments :

Post a Comment

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

Web Analytics