Besides raising fast cash, cutting it loose from the accounting firm structure will enable the consulting group to better compete for personnel with public companies that can offer compensation models, such as stock options, that the consulting group can't offer as a part of the CPA firm, Grant Thornton partner Cono Fusco explained.

"The opportunity to sell the e-business consulting group presented us with a chance to unlock the significant value that exists in that group," he said. "It will give them (the consulting group) the opportunity to expand their business outside the constraints of the accounting firm model."

As part of Grant Thornton, the 450-person consulting group not only faced stiff competition for staff from IT firms, but it also had to compete for resources with the accounting firm's other lines of business, Fusco added.

With revenue of $416 million, Grant Thornton ranks sixth largest in the nation among public accounting firms.

Unlike the cases of some of the Big Five firms, which sold off their consulting arms to ease regulatory pressures surrounding issues of auditor independence, Fusco noted that the sale of the consulting unit wasn't to avoid a conflict of interests between audit and consulting, since most of the group's clients weren't audit or tax clients.

"While the e-business consulting practice was an important part of the firm, it focused on a different market than the rest of Grant Thornton. While Grant Thornton's primary focus is on middle-market emerging entrepreneurial companies, the consulting group had moved its focus toward very large global companies," most of which weren't tax or audit clients of the accounting firm, Fusco said.

While part of the proceeds from the sale will go to the partners, a significant portion will be reinvested in the firm for acquisitions, Fusco said. The firm has been eyeing opportunities in financial advisory services arena for more than a year, he said. In addition, the firm will likely look to expand into new geographic locations, he added.

"We're looking at opportunities involving the convergence of professional services and financial services," Fusco said, as well as "opportunities to increase our critical mass in important financial centers across the country."

The sale was in line with plans announced back in February, GT said. The deal is expected to close on or around Oct. 31.

-- By Melissa Klein

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