Interpath Advisory Ireland, an advisory and business restructuring company, launched by past partners of KPMG and Deloitte, aims to record a revenue of approximately €13 million for its inaugural year. Despite anticipating a year-end loss to March 2024, Ken Fennell and Kieran Wallace, the founding directors, express that the firm is currently enjoying profitable operations. The company got its start in May 2021, following the sale of KPMG’s UK corporate restructuring sector to HIG Capital, a private equity firm.
Eamonn Richardson and Mr Wallace from KPMG Ireland, and Mark Degnan and Mr Fennell from Deloitte Ireland merged together in early 2022 to establish Interpath’s Irish division. Each faced lengthy notice periods which led to their incorporation between the end of 2022 and April 2023.
The company currently has over 90 skilled individuals and projects a workforce of approximately 120 by the conclusion of 2025. This year’s upper-level appointments have seen Denis Herlihy, earlier managing partner of BDO Limerick, setting up a tax team, while Andy Tallon, formerly from CBRE’s capital advisory business in Ireland, establishing a debt advisory sector. Moreover, former executive director of Goldman Sachs in Europe, Clara Coakley, recently joined Interpath Advisory Ireland as a member of the expanding debt advisory unit.
News came about last week that John Doddy, who presides over debt and capital advisory at Deloitte Ireland, is set to join the company soon, according to staff at the establishment. Interpath Advisory Ireland’s nascent progress has unfolded amidst emerging unification trends in the accountancy and restructuring fields in recent years, predominantly sponsored by foreign private equity funds.
Mr Wallace disclosed that over the past two years, the company has considered “four or five” potential business prospects. Despite this, none of these ventures materialised for different reasons. Presently, discussions are underway with a company, though Mr Fennell didn’t reveal their identity. He mentioned that they are eager to expand their activities through organic growth as well as acquisitions.
Over the last year, Interpath Advisory Ireland’s team has been involved in carrying out restructuring such as the receivership of The Square shopping centre in Tallaght, winding up of IBRC, liquidation of PFS Card Services, and the administration of Nitronica, a Co Down-based supplier of electronic manufacturing services.
Data from Deloitte Ireland highlights a 36 per cent surge year-on-year in corporate insolvencies in Ireland up to 650 in the first three quarters of 2024. The increase was especially pronounced among service and hospitality firms. It’s predicted the figure will approach 900, a number not recorded since 2017.
Mr Fennell stated that while there isn’t an expected overwhelming wave of insolvencies, a fresh trend is emerging in the market. More firms are seeking advice before they get to insolvency, steering a lot of restructuring outside conventional proceedings like receivership, examinership, or liquidation.