Grant Thornton exodus over strategic difference

Grant Thornton South Africa announced on Tuesday that the group of partners and staff in the Cape Town office would leave the firm to pursue alternative business opportunities.

"The decision was reached when differences between two key groups of partners could not be overcome‚" the company said.

Deepak Nagar‚ Grant Thornton's managing partner‚ told Business Day it boiled down to the decision made two years ago to double revenue by 2015 and "how to get to that objective".

"There were differences over the direction of the firm‚" he said.

"We never like to lose staff‚ but from a strategic perspective sometimes an exit is necessary."

However‚ Nagar said‚ "more than the majority" of the existing staff will remain in the Cape Town office.

"We wish the departing partners and staff well in their future ventures‚" Grant Thornton Cape managing partner Ian Scott said.

In June 2010‚ Ian Scott and Neil Miller were appointed joint managing partners when BDO was merged into the Grant Thornton firm in the Cape.

Grant Thornton in South Africa with the support of Grant Thornton International‚ has endorsed the decision and remains fully committed to the remaining Grant Thornton partners in Cape Town.

Scott will continue in his role as managing partner of Grant Thornton Cape.

The Cape business‚ which includes the Port Elizabeth firm‚ will continue to conduct business as usual. The bulk of the Cape firm remains fully intact to provide all services to clients across the region.

Hilton Saven‚ national chairman of Mazars South Africa and co-CEO of Mazars International‚ said the team joining Mazars was the original Grant Thornton team that merged with BDO Cape Town two years ago.

"That merger has been unwound‚ and the original Grant Thornton practice will now merge with Mazars‚" he said‚ adding that the audit and accounting group was "delighted to welcome such an exceptional group of professionals into the Mazars family".

"Their business mirrors ours remarkably in many ways‚ and will strengthen our offering across the board‚" he said‚ adding that it was an important development in Mazars' strategy of combining organic and external growth.

Saven says the merger has been enthusiastically welcomed at international level‚ and is seen as an important development in its strategy of combining both organic and external growth.

Neil Miller‚ departing joint managing partner of Grant Thornton Cape Town‚ who will join Mazars as a partner‚ says the partners and staff are excited at the prospect of working with the calibre of professionals Mazars offers.

In addition to Miller‚ the partners joining Mazars are Danny Naidoo‚ Mike Teuchert‚ David Smith‚ Larry Auret and Melanie Odendaal. Retired partners David Wener and Deryck Woolley will also join as consultants. The new partners and staff will be integrated into Mazars' Cape Town office in Century City.