Teneo makes major Aussie push through purchase of PwC’s restructuring arm
Global consultancy Teneo has purchased PwC’s Australian restructuring arm, in the process launching its financial advisory business downunder with over 80 professionals already in place.
In a major disruption to the Australian consulting sector, Teneo properly enters the local scene with more than a dozen former PwC partners and 70 staff, significantly adding to its current local headcount of around 15 strategy & communications professionals.
The acquisition confirms earlier reports of PwC’s intended sell-off, and follows the firm’s divestment from its Indigenous Consulting business and the shedding of its $650 million public sector practice in the immediate aftermath of the government tax breach scandal.
“Australia has a diverse, innovative and growing economy, making it a critical market for Teneo as we continue to build our business across the Asia Pacific and around the world,” stated CEO Paul Keary. “This acquisition rapidly advances our ongoing commitment to grow our existing operations in Australia, and we are excited to welcome PwC’s restructuring services unit to our team.”
As part of its bold move on the Australian market, the New York-headquartered firm, which is majority-owned by CVC Capital Partners, will establish a new office in Brisbane in the coming weeks, as well as significantly expand its existing operations in Sydney and Melbourne.
Teneo made its first real push into Australia in 2018, backed by its subsequent acquisition of Sydney-based strategic communications consultancy Quay Advisors, but hasn’t had a huge impact on the local market since then, despite counting former Dow Chemical CEO and Brisbane Olympics organising committee president Andrew Liveris as a senior advisor.
Now, the firm will add 14 soon-to-be former PwC partners to its senior leadership ranks, including Stephen Longley who will head up Teneo’s newly-launched financial advisory line, which it has been building up across the world since first buying Deloitte’s restructuring business in the UK in 2021, before later adding KPMG’s restructuring assets in the Cayman Islands.
“We are excited to join Teneo as a key part of its strategy to grow a global financial advisory & restructuring business,” Longley said, having rejoined PwC upon its purchase of PPB Advisory in 2018. “As the market continues to evolve, we will remain focused on what has always been important: the growth and development of our team and delivering great outcomes for our clients.”
Local market
Teneo will be competing locally in the turnaround segment with the likes of FTI Consulting and Alvarez & Marsal, the latter which has been booming in Australia in recent times as the influence of Big Four wanes. However, despite building its reputation on business repair, A&M is only just now building-out its Australian restructuring team, most recently picking the eyes out of Deloitte.
Teneo now has a global team of almost 600 restructuring professionals as part of its broader headcount of around 1,700 in over 40 offices worldwide. According to Bloomberg, the firm is currently pushing $750 million in global revenues, more than doubling that figure over the past four years, and is looking to bring in a new investor with a valuation of above $2 billion.
Meanwhile, PwC Australia’s chief Kevin Burrowes, who was flown in to restore the local firm’s reputation, said: “We are pleased to finalise this important transaction which will see our business restructuring services partners and team join Teneo. We look forward to working with Teneo on a seamless transition for our clients, people and partners and wish the new business every success.”
