Grant Thornton LLP
| Company type | Limited liability partnership |
|---|---|
| Industry | Accounting, advisory services |
| Founded | 1924 |
| Founder | Alexander Richardson Grant, William O’Brien |
| Headquarters | Chicago , United States |
Area served | United States |
Key people | Brad Preber (CEO) |
| Products | Audit, tax, advisory services |
| Owner | New Mountain Capital (majority stake since 2024) |
Number of employees | 8,500 (staff), 550 (partners) (2024) |
| Website | grantthornton |
Grant Thornton LLP serves as the United States member firm of Grant Thornton International, which ranks seventh worldwide among accounting networks by combined fee revenue. Within the U.S., it stands as the seventh largest accounting and advisory entity, maintaining 59 offices across the country and employing approximately 8,500 staff alongside 550 partners. The firm's annual revenues exceed US$1.9 billion.
In 2024, a majority ownership stake in Grant Thornton was sold by its partners to the private equity firm New Mountain Capital, representing a major transformation in the firm's ownership framework.
Early history
Alexander Richardson Grant, who was then a senior accountant at Ernst & Ernst (later Ernst & Young), established Alexander Grant & Co. in Chicago in 1924 with William O’Brien, concentrating primarily on middle market clientele. Over the following thirty years, the firm experienced swift growth under various leaders.
By 1961, the company had opened a national office in Chicago and achieved net revenues exceeding $5 million. Around this period, a European counterpart dedicated to middle market services was founded, which would later become known as Binder Dijker Otte & Co. (BDO).
The mid-1960s saw the firm pursuing international expansion, culminating in a 1969 merger with firms from Australia, Canada, and the United Kingdom to create Alexander Grant Tansley Witt.
By 1980, Alexander Grant & Co. had formed alliances with 49 international firms, including the UK-based Thornton Baker, resulting in the establishment of the global partnership Grant Thornton International.
The 1985 merger of Alexander Grant & Co. with Fox & Co. elevated it to the ninth largest accounting firm in the U.S., operating 80 offices and employing over 3,000 professionals.
In 1986, reflecting its connection with UK firm Thornton Baker—which also underwent rebranding—Alexander Grant & Co. adopted the name Grant Thornton.
Recent history
In 2002, Grant Thornton expanded by acquiring seven offices along with 43 partners and 396 employees from the former Arthur Andersen.
J. Michael McGuire was appointed CEO of Grant Thornton in June 2014.
Brad Preber succeeded him as CEO in August 2019.
By 2019, Grant Thornton had become the sixth largest accounting firm in the U.S., with a network of 59 offices, more than 550 partners, around 7,000 employees, and fiscal year 2018 revenues reaching $1.7 billion.
In March 2020, the firm formed a partnership with GroupSense to deploy digital crime mitigation solutions.
In March 2024, New Mountain Capital acquired a controlling interest in Grant Thornton, which at that time ranked as the seventh largest U.S. accounting firm following the Big Four firms, RSM, and BDO. This transaction paralleled other private equity investments within the industry, such as Baker Tilly securing $1 billion from Hellman & Friedman just one month earlier.
Subsequent to this ownership change, Grant Thornton implemented an alternative practice structure whereby Grant Thornton LLP provides attest services while business advisory and non-attest functions are managed by Grant Thornton Advisors LLC.
Operations
Based in Chicago, Grant Thornton LLP delivers services across three primary lines: audit, tax, and advisory. Its advisory capabilities encompass Sarbanes-Oxley compliance assistance, mergers and acquisitions support, tax advisory services, and business valuation expertise. The firm's industry specializations include construction; distribution; energy; financial services; food and beverage; healthcare; hospitality and restaurants; life sciences; manufacturing; not-for-profit organizations; private equity; real estate; retail; technology; and transportation sectors.
Services
Grant Thornton offers three primary service categories:
- Audit/Assurance: Performs financial statement audits and integrated audits mandated by the SEC and Sarbanes-Oxley Act, utilizing sophisticated tools and techniques.
- Tax: Delivers advisory and compliance services for federal, state, local, and international tax matters, along with consulting on compensation and benefits, private wealth management, and tax accounting and risk assessment.
- Advisory: Provides specialized guidance in areas such as business strategy, corporate governance, risk management and compliance, operational performance enhancement, and information technology solutions.
Tax Desk
The US branch of Grant Thornton has established Tax Desks that link member firms internationally to assist clients with global expansion and navigate challenges in foreign markets. Notable desks include collaborations between the United States and the United Kingdom, China, and Japan.
Criticisms
- In 2005, the Public Company Accounting Oversight Board (PCAOB) reported audit shortcomings in eight companies audited by Grant Thornton, noting a lack of sufficient evidence backing audit conclusions. Grant Thornton formally contested the PCAOB's extensive allegations in a 2007 rebuttal.
- In 2012, Grant Thornton was ordered to pay $100 million following accusations by client Bill Yung of withholding critical information and marketing a tax shelter with a significant risk of IRS disapproval. The Kentucky State Court awarded $20 million in compensatory damages and $80 million in punitive damages.
Sponsorship
- In December 2017, Grant Thornton entered into a five-year marketing agreement with the PGA Tour, succeeding PricewaterhouseCoopers as the official "Player's Partner." At the same time, the firm signed an individual sponsorship deal with professional golfer Rickie Fowler.
- In March 2016, Grant Thornton committed to a multi-year partnership with the National Center for the Middle Market (NCMM). Additionally, in 2015, it became a long-term sponsor of the Charlotte Hornets, including the renaming of the Crown Club to the "Grant Thornton Crown Club."
- In 2022, Grant Thornton collaborated with golf programs at historically black colleges and universities (HBCUs) including Alabama State University, North Carolina A&T State University, Prairie View A&M University, Tennessee State University, and Texas Southern University. This initiative aimed to bolster golf programs and support student-athlete growth through tournament sponsorships and facility enhancements during the 2022-23 academic year.