America's No. 1 financial conglomerate

Chapter 590 Perfecting the Moat

"I can agree to a meeting with Robert Grafton."

"The transfer of YueDong Games' auditing services to Arthur Andersen is also open for discussion."

Ernst spoke in a steady tone, his gaze fixed on Skilling across from him, whose lips unconsciously curled into a smile. Ernst was eagerly anticipating his next reaction.

"It's not just Leap Games." He slowly uttered a string of names, watching Skilling's pupils suddenly constrict.

"The auditing services of companies such as MGM, ITech, Flash Sale, and Ernst Asset Management can all be included in the discussion."

"What?" Skilling exclaimed in a low voice, his fingers unconsciously clenching the hem of his clothes under the table.

Ernst felt his heart clench with every name he uttered.

As a giant in the entertainment industry, MGM faces a very complex auditing process.

Complexity also means high profits, and Hollywood's big names have always been the targets of fierce competition among accounting firms.

The two rising giants, iTech and Flashbuy, need no further introduction. Their growth momentum is rapid, their current businesses are already amazing, and their future potential is immeasurable.

Before he could recover from the shock, Ernst's voice came again, making him want to ask the waiter if they had any nitroglycerin pills on hand. He was afraid that he might suddenly faint from excitement.

"Not only that, I can also connect Apple and Pixar with Arthur Andersen."

"Even the companies invested in by Ernst Asset Management, if Arthur Andersen is willing, can help you connect with them and make the necessary contacts."

Skilling felt his mind go blank. This was no longer just the business volume of one company, but a stable and continuous business supply chain.

His heart was pounding wildly, and his blood seemed to rush to his head, causing his face to flush an abnormal red.

I swallowed unconsciously, my throat was so dry and painful.

Just then, Ernst's gaze deepened, and he dropped the biggest bombshell: "Even with Google, there's nothing we can't talk about."

"If Arthur Andersen can agree to my conditions, all these companies can gradually transfer their audit business to Arthur Andersen over the next three years."

At this moment, Skilling felt that his brain could no longer think normally, and countless thoughts were frantically intertwining in his mind.

God, have you finally remembered your most faithful believer?

Am I also your forgotten son, destined to finally receive your favor?

If this deal goes through, he'll receive at least $50 million in commission from Arthur Andersen. Dad, is this your way of looking out for me?

Seeing Ernst suddenly reminded me of his claim of being the Son of God.

Skilling desperately wanted to ask, "Brother, has Dad finally remembered me?"

Overwhelmed with excitement and ecstasy, Skillin's body trembled uncontrollably, his legs shaking violently, and his voice trembled noticeably as he asked, "You... what are your conditions?"

He didn't even dare to speak loudly, for fear that if he exerted any force, everything in front of him would shatter like a bubble.

Ernst's smile remained gentle, yet carried a subtle, almost imperceptible sharpness as he slowly spoke, "I'm actually quite interested in Anson."

"An Sheng?" Skilling's eyes widened instantly, and the ecstasy on his face froze, replaced by incredulous shock.

He blurted out almost instinctively, "Impossible! Absolutely impossible! There's no way Andrews would agree to this request!"

For Arthur Andersen, the name AXA is nothing short of a thorn buried deep in his heart, an unhealable scar.

It also has a more well-known name to later generations—Accenture.

It is poised to become the world's largest management consulting firm and one of the world's top 500 companies.

In 1953, Arthur Andersen, an accounting firm, installed the first commercial computer in the United States to help General Electric improve its payroll processing efficiency, thus ushering in the era of data processing. This project also marked the beginning of Arthur Andersen's consulting business, which rapidly developed based on General Electric's model solution.

However, as the consulting business became more profitable than the auditing business in the 80s, the consulting staff were no longer content to be dependent on Arthur Andersen and kept clamoring for a spin-off and independent operation.

In 1989, the consulting division finally got its wish, splitting Arthur Andersen into Arthur Andersen, which mainly engaged in auditing, and AXA Consulting, which mainly engaged in consulting.

However, AXA soon discovered that it had been tricked, because in order to split up, Arthur Andersen had established Arthur Andersen Global, a parent company in Switzerland, and both companies were under its jurisdiction.

AXA was finally no longer a subsidiary of Arthur Andersen, but then it became someone else's subsidiary, which completely severed the ties between AXA and Arthur Andersen.

Ernst gently shook his head, saying firmly, "Nothing is impossible. If people's hearts are scattered, forcibly bringing them together will only increase internal friction and be meaningless. Doesn't Andersen's current situation prove this?"

In terms of professionalism, business capabilities, and development prospects, Arthur Andersen remains the undisputed leader in the industry, far surpassing the other Big Four accounting firms.

With decades of accumulated industry experience, a comprehensive service system, and top-notch professionals, Arthur Andersen holds an absolute leading position in the auditing field due to its technological barriers and brand advantages.

The reason why it has fallen into such a state in just a few years, with its business declining, lies in the internal disputes between the audit and consulting businesses.

At Arthur Andersen, business expansion is no longer the top priority; internal strife is.

"Rather than letting the audit and consulting departments stick together, wasting each other's time and going down together, it's better to separate early on and wish each other well."

Looking at Skilling, who was still in shock and hadn't fully recovered, Ernst continued, "Even we outsiders can see that AXA is not going to give in this time. Their goal is clear: a complete breakup and independent development. This conflict will only continue until both sides completely separate." "And do you think it's possible for Arthur Andersen to demand a $100 billion breakup fee from AXA?"

Skilling's body stiffened abruptly, and a bitter smile appeared on his face.

A $100 billion breakup fee is an unrealistic figure and a harsh condition proposed by Arthur Andersen in a fit of anger.

Since AXA dared to break with tradition and take the dispute to the Paris International Chamber of Commerce for arbitration, it will never compromise easily.

In this lawsuit, Arthur Andersen has little chance of winning. Even if it eventually receives partial compensation, it is unlikely to fall below the $100 billion mark.

On the contrary, the lengthy litigation process will continue to drain the company's resources and energy, making the already precarious business and market share even worse.

Ernst observed the change in his expression. "You can pass on my words to Robert Grafton. In this breakup case, Arthur Andersen has never been facing just AXA, but also the other Big Four accounting firms eyeing the market with predatory intent."

The other four major firms have always coveted Arthur Andersen's market share, and now that Arthur Andersen is embroiled in internal strife, it is the perfect opportunity for them to take advantage of the situation.

They were hoping the conflict between Arthur Andersen and AXA would escalate further, ideally resulting in a lose-lose situation, so they could seize the opportunity to grab Arthur Andersen's high-quality customers, top talent, and market resources, and completely dismantle this former industry giant.

"It's not just the other Big Four; there's also the driving force behind this from the capital markets," Ernst added.

"After leaving Arthur Andersen, AXA needs substantial financial support to achieve stable development."

"Going public is undoubtedly the best way for them to obtain funds." "The capital market has always pursued high-quality assets. As a leader in the consulting industry, AXA has extremely high investment value. The capital market will also secretly help AXA and promote its separation from Arthur Andersen."

Skilling fell silent; he had to admit that Ernst's analysis was absolutely correct.

Arthur Andersen is now facing difficulties both internally and externally.

Internally, infighting within the audit and consulting departments intensified, leading to widespread demoralization.

Externally, the other four major accounting firms are eyeing the market covetously, and the capital market is also fueling the flames.

The split of AXA seems to have become an irreversible and inevitable trend.

Thinking about it this way, it doesn't seem impossible for Ernst to want AXA.

"In addition to all the companies under my name and those affiliated with me being able to entrust their audit business to Arthur Andersen, I can also provide Arthur Andersen with a generous breakup fee to compensate them for some of the losses they incurred during the AXA breakup process."

Skilling was silent for a moment, then looked up and said, "Even if Andersen agrees, An Sheng's partners won't. They've sacrificed so much for independent development; they probably won't easily agree to have another paramount figure over them."

Ernst smiled confidently upon hearing this, "You don't need to worry about this."

"You only need to do two things: give me an opportunity to meet and discuss with AXA's core decision-making team, and push for a resolution within Arthur Andersen to approve my acquisition of AXA."

Consulting services are important, but Ernst's ultimate goal isn't AXA, but Arthur Andersen. When Arthur Andersen collapses, AXA will become a living advertisement.

AXA already possesses top-notch consulting talent and a comprehensive service system. With the addition of Ernst's capital injection and resource integration, it is fully capable of taking over Arthur Andersen's core employees and high-quality clients.

At that time, he will be fully capable of creating another industry giant that integrates auditing and consulting, filling the market gap left by the collapse of Arthur Andersen.

A true conglomerate must possess a complete business ecosystem.

Ernst Asset Management controls financial capital and is the lifeblood of the conglomerate; while its auditing and consulting services act as the conglomerate's judges and strategists.

Those who fix matches all know this.

The referee must be one of our own.