Ernst & Young has acquired Frank Hirth Plc, a large London-based firm that provides U.K. and U.S. personal tax services.
Frank Hirth is a well-known firm in the U.K., so as part of the deal, the acquired business will operate under the name EY Frank Hirth Limited. As part of the deal, Frank Hirth’s 195 employees will also be joining the EY private tax team. EY will also inherit Frank Hirth’s approximately 4,000 clients. Financial terms of the deal were not disclosed. EY ranked third on Accounting Today’s 2021 list of the Top 100 Firms, with $15.8 billion in annual revenue in the U.S. and $37.2 billion globally.
The acquisition is part of a wave of mergers in the accounting profession in recent weeks as the economy shows signs of recovery during the COVID-19 pandemic in the U.S. and the U.K. For EY, the acquisition will help the Big Four firm drive its ambition to be a leader in private tax services as clients face the growing complexity of U.K. and U.S. tax issues. The Biden administration has announced plans to reform the U.S. tax system in recent weeks, and it is showing new levels of coordination with international allies on setting a global minimum tax on corporations through the Organization for Economic Cooperation and Development.
“This is a landmark acquisition,” said EY global vice chair of tax Kate Barton in a statement Tuesday. “It further strengthens the EY presence in professional services around the world, and Frank Hirth’s significant experience in personal tax services in the U.K. and the U.S. will help provide valuable services to EY clients. The cross-border tax landscape is increasingly complex and extremely fast moving, and this acquisition will allow EY teams to bring even more insight and knowledge to help EY clients navigate the issues that they face in relation to U.K. and U.S. tax.”
EY private tax professionals now number over 550 people across the U.K. Frank Hirth’s employees will be joining them, including former Frank Hirth CEO Robyn Limmer, who will become an EY Frank Hirth Limited senior partner. “Throughout our discussions with EY professionals it has been clear that we share common values and goals, and so this has felt like a natural fit from day one,” Limmer said in a statement. “This is a great chance for us to come together, to propel our collective U.S. and U.K. private client businesses to a new level, whilst maintaining and enhancing the exceptional client service we are known for.”
