Ernst & Young is a British multinational professional services partnership headquartered in London, England.
Ernst & Young Global Limited, trade name EY, is a British multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and PwC, it is considered one of the Big Four accounting firms. It primarily provides assurance (which includes financial audit), tax, consulting and advisory services to its clients. Like many of the larger accounting firms in recent years.
EY operates as a network of member firms which are structured as separate legal entities in a partnership, which has 312,250 employees in over 700 offices in more than 150 countries around the world. The firm's current partnership was formed in 1989 by a merger of two accounting firms, Ernst & Whinney and Arthur Young & Co. It was named Ernst & Young until a rebranding campaign officially changed its name to EY in 2013, although this initialism was already used informally prior to its sanctioning adoption.
In 2019, EY was the seventh largest privately owned organization in the United States. EY has continuously been ranked on Fortune magazine's list of the 100 Best Companies to Work For for the past 24 years, longer than any other accounting firm.
EY was formed through a series of mergers between ancestor firms. The oldest of these firms, Harding & Pullein, was founded in 1849 in England. Over the years, the firm underwent name changes and partnerships, including the addition of Frederick Whinney, who eventually became a partner, leading to the renaming of the firm as Whinney, Smith & Whinney in 1894.
In the United States, Ernst & Ernst was established in 1903 in Cleveland, Ohio, by Alwin C. Ernst and Theodore Ernst. Similarly, Arthur Young & Co. was founded in 1906 by Scottish accountant Arthur Young in Chicago. These two American firms formed alliances with prominent British firms in the 1920s, resulting in the creation of Ernst & Whinney in 1979, which became the fourth largest accounting firm in the world.
In 1989, Ernst & Whinney merged with Arthur Young & Co., at that time the fifth largest global firm, to form Ernst & Young. This merger brought together two prominent firms and solidified EY's position as a leading professional services organization.
In the late 1990s, Ernst & Young made significant strategic moves and faced challenges that shaped its history. In 1997, the firm announced plans for a merger with KPMG, aiming to create the largest professional services organization globally. However, the merger was eventually abandoned in 1998 due to various factors such as client opposition, antitrust concerns, cost issues, and the complexities of merging two distinct firms and cultures. Meanwhile, the merger between Price Waterhouse and Coopers & Lybrand proceeded as planned, resulting in the formation of PwC.
During the 1980s and 1990s, Ernst & Young heavily expanded its consulting practice. This led to concerns about potential conflicts of interest as the firm provided both auditing and consulting services to overlapping clients, a common practice among the "Big Five" accounting firms. In response to these concerns, Ernst & Young became the first of the Big Five to fully separate its consulting practices. In 2000, it sold its consulting arm to the French IT services company Capgemini for $11 billion, forming Capgemini Ernst & Young, which was later renamed back to Capgemini. This separation aimed to address the perceived conflict and enable a more focused approach to consulting and auditing services.
Over the years, EY has undergone significant developments and expansions. In 2006, EY became the only member of the Big Four to have two member firms in the United States, with the addition of Mitchell & Titus, LLP. However, Mitchell & Titus ended its membership in the EY network in 2015. In 2010, EY acquired Terco, the Brazilian member firm of Grant Thornton.
In 2013, EY rebranded from Ernst & Young to EY and adopted the tagline "Building a better working world." The same year, EY was enlisted to review and consult on the finances of Vatican City State. EY also acquired KPMG Denmark's operations and the global strategy consulting firm The Parthenon Group, renaming it EY-Parthenon. In 2015, EY opened its first global Security Operations Centre in India and invested $20 million to combat cybercrimes. EY continued its expansion in 2017 by establishing an executive support center in Arizona and a Digital Security Operations Center in Oman. In 2018, EY opened a professional services center in Kentucky and announced plans to open an IT/tech hub in Tennessee.
EY's mission is centered around “Building a better working world”.
It strives to achieve this by providing valuable insights and high-quality services that contribute to building trust and confidence in the capital markets and economies globally.
Through its mission, it aims to contribute to a better working world where individuals, businesses, and societies thrive. It is dedicated to leveraging its expertise, knowledge, and resources to drive positive change, promote sustainable practices, and create opportunities for growth and prosperity. By upholding its mission, it strives to build a better future for our people, clients, and the communities it serves.
EY's vision is to create a better working world, where businesses and communities thrive, and individuals reach their full potential. It envisions a future where organizations embrace innovation, navigate complexity, and address societal challenges to drive sustainable growth and prosperity. Its goal is to be the most trusted and respected professional services firm, known for its client service, integrity, and commitment to making a positive impact.
The company strives to be at the forefront of transformational change. It aims to lead in the digital age, harnessing emerging technologies, data analytics, and automation to deliver innovative solutions and insights that drive value for our clients. It believes that by embracing diversity and fostering inclusivity, it can unlock the full potential of our people, creating a collaborative and inclusive culture that fuels creativity, agility, and excellence.
Strategy by EY-Parthenon: EY combines innovation and practical thinking to develop actionable strategies that make a difference in the business world. By understanding the unique challenges and opportunities of each client, EY-Parthenon delivers strategies that drive growth and success.
Consulting: EY's consulting services help organizations transform their business by placing humans at the center. Leveraging technology and fostering innovation, EY assists clients in achieving their goals and staying ahead in a rapidly evolving market.
People and workforce: EY recognizes the critical role of people in achieving business success. By integrating people strategies into overall business strategies, EY helps organizations unleash the potential of their workforce, creating a competitive advantage and driving sustainable growth.
Transactions and corporate finance: EY assists clients in reimagining their ecosystems, reshaping portfolios, and reinventing themselves for a better future. With expertise in corporate finance, EY helps clients navigate complex transactions and make informed decisions to drive value.
Assurance: EY's assurance services promote trust and confidence in business and capital markets. By providing independent and reliable assessments, EY helps protect and promote sustainable, long-term value for stakeholders.
Tax: EY offers comprehensive tax services that span across all disciplines. With a deep understanding of the rapidly changing tax landscape, EY helps clients thrive in an era of constant change and complexity.
Law: EY bridges the gap between business advisors and legal counsel, helping clients navigate the complexities of the global economy. By providing integrated legal services, EY supports clients in making informed decisions and managing legal risks.
Technology: EY harnesses the power of technology to drive transformation and reshape the future of organizations and industries. By leveraging emerging technologies and innovative solutions, EY helps clients navigate digital disruption and unlock new opportunities.
Managed services: EY revolutionizes non-core, but critical business activities with integrated solutions that streamline operations and free up time for innovation. Through managed services, EY helps clients optimize efficiency and focus on core business priorities.
EY Private: EY provides comprehensive support to private businesses, helping them unlock their full potential. From expansion and transformation to governance and financing, EY assists private businesses in achieving their ambitious goals.
EY Sustainability: EY delivers value-led sustainability solutions to help clients protect and create value for their business, people, society, and the world. By integrating sustainability into business strategies, EY supports clients in achieving long-term success while making a positive impact.
