A former head of one of Britain’s largest auditing firms is set to step down as chairman of Interpath, the independent consultancy, due to a potential conflict of interest related to the selection of the private equity backer’s auditor.
Interpath, which has been brought on board by billionaire Sir Jim Ratcliffe in his cost-cutting drive since taking a stake in Manchester United Football Club, will announce this week that John Connolly will leave, Sky News has learned.
Connolly, who has headed the firm since its founding in 2021, is set to hand the reins to Tamara Box, a former managing partner at law firm Reid Smith in the City.
Connolly will step down due to the impending appointment of Deloitte as global auditor for HIG Europe, Interpath’s private equity backer, insiders said this weekend.
Connolly retired from his position as senior partner and CEO of Deloitte UK in 2011, but still receives a pension from the firm.
One source said he, Interpath and HIG agreed that his departure would avoid any potential conflicts of interest, and that HIG needed Deloitte to be conflict-free.
The move is not without irony, given that Interpath’s founding was a result of UK-based KPMG divesting its restructuring arm amid growing hurdles posed by conflicts between the auditing and consulting operations of senior accountants.
News of the leadership succession will come as Interpath reports strong performance for the fiscal year ending March 31, with a nearly 15% increase in revenue and a four-fold increase in operating profit compared to the previous year.
They will show total revenue of £163.6 million and adjusted earnings before interest, taxes, depreciation and amortization of £46.3 million, one of the people familiar with the results said.
Interpath has been steadily expanding its international network, with a workforce now numbering more than 900 people.
It recently announced a change in its executive leadership, with Mark Raddan replacing Blair Nimmo as CEO.
The firm opened an office in Bermuda – a key location for the global restructuring sector – and acquired KPMG’s restructuring business in France.
It also recently appointed David Sawyer, an industry veteran, as a special advisor to assist with its US expansion.
Interpath also expects to benefit from UK corporate insolvency rates which are now higher than those seen during the Covid-19 pandemic.
Among her recent appointments was serving as responsible for the pre-sale of CTD Tiles to Topps Tiles.
An Interpath spokesman declined to comment Sunday.