Andersen float could net partners pounds 1m each

A flotation of Andersen Consulting, the information technology services supplier and consultancy, could net the 389 UK-based partners of Andersen Worldwide at least pounds 1m each.

For the more senior partners, the windfall could be as much as pounds 5m, if they vote to split Andersen Consulting from its sister accountancy firm, Arthur Andersen, at a meeting of the partners in September.

Analysts believe that a listing for Andersen Consulting could free it to go on the acquisition trail and raise much-needed capital for its growing - but capital-intensive - business of running IT systems for its clients. "One can see the logic of it," says Richard Holway, independent analyst and author of the annual Holway Report on the IT consultancy industry. "IT services are flavour of the decade, and they can attract not inconsiderable p/e ratios."

Andersen Consulting is the fastest-growing division of Andersen Worldwide, and had global revenues of $4bn (pounds 2.6bn) for the year to October 1995, a 21 per cent rise on 1994. Its UK operations, which include IT contracts for Sears and the Department of Social Security, accounted for pounds 284m.

Based on the industry average price/earnings ratio of 27, a publicly quoted Andersen Consulting would have a market capitalisation of about pounds 6bn. If fee income continues to grow at its current rate, however, the company could be worth over pounds 7bn.

Andersen Worldwide, the parent of both Arthur Andersen and Andersen Consulting, denied reports that it was going to spin off the consulting side and said that it is considering a number of options to redefine its business structure, which might include separating the two but equally might mean bringing them closer together. Andersen Consulting's most recent contracts have included a larger proportion of accountancy work, which can be easily farmed out to the sister accountancy firm.

However, Andersen Consulting partners are thought to be unhappy with the current partnership structure, which involves their group subsidising the accountancy side to the tune of $200m a year, according to the US trade journal Consulting News. Tensions are also thought to have surfaced in the UK between Andersen Consulting partners and the management consultancy division started by Arthur Andersen after its merger with Binder Hamlyn, the accountancy firm, in October 1994.

With the flotation of EDS from General Motors, Andersen Consulting is now the only company among the top 10 IT consultancies in the world not to have a stock market listing.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
tvGame of Thrones season 5 ep 4, review - WARNING: contains major spoiliers!
Arts and Entertainment
tvThe C-Word, TV review
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Danny Jones was in the Wales squad for the 2013 World Cup
rugby leagueKeighley Cougars half-back was taken off after just four minutes
Life and Style
The original ZX Spectrum was simple to plug into your TV and get playing on
techThirty years on, the ZX Spectrum is back, after a fashion
Tiger Woods and Lindsey Vonn are breaking up after nearly three years together
peopleFormer couple announce separation in posts on their websites
Life and Style
Google celebrates Bartolomeo Cristofori's 360th birthday
techGoogle Doodle to the rescue
Arts and Entertainment
Haunted looks: Matthew Macfadyen and Timothy Spall star in ‘The Enfield Haunting’
tvThe Enfield Haunting, TV review
The Mattehorn stands reflected in Leisee lake near Sunnegga station on June 30, 2013 near Zermatt, Switzerland
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living