Ernst & Young Israel

Ernst & Young Israel
Name	Ernst & Young Israel
Type	Subsidiary
Industry	Professional services
Founded	1981
Headquarters	Tel Aviv, Israel
Key people	Moshe Cohen (Country Managing Partner)
Revenue	N/A
Num employees	~2,000
Parent	Ernst & Young Global
Website	ey.com

Ernst & Young Israel is the Israeli member firm of the global professional services network Ernst & Young Global. It provides audit, tax, transaction advisory, and consulting services to clients across Israeli technology, finance, energy, and life sciences sectors. The firm operates within the context of Israel’s business ecosystem, interacting with entities such as the Tel Aviv Stock Exchange, multinational corporations, startup accelerators, and public institutions.

History

The firm traces its roots to international expansions of Ernst & Young Global during the late 20th century and formal establishment in Israel in the early 1980s, contemporaneous with the emergence of the Silicon Wadi cluster and the rise of companies like Check Point Software Technologies and Teva Pharmaceutical Industries. During the 1990s and 2000s, the firm expanded in parallel with privatizations and regulatory reforms affecting entities such as the Bank of Israel and the Israel Securities Authority. Corporate engagements included advisory roles in landmark transactions alongside legal advisers from firms like Herzog Fox & Neeman and Meitar Liquornik Geva Leshem Tal. The firm’s history reflects interactions with international accounting developments such as International Financial Reporting Standards and global events including the Dot-com bubble and the 2008 financial crisis.

Organization and Operations

Ernst & Young Israel functions as a member firm under the structure of Ernst & Young Global with a local leadership team coordinating service lines including Assurance, Tax, Transactions, and Advisory. The organization maintains offices in metropolitan centers such as Tel Aviv and conducts operations with teams that liaise with regulatory bodies like the Israel Securities Authority and financial institutions including Bank Leumi and Bank Hapoalim. Its corporate governance involves partners and a country managing partner who coordinate with regional leadership in Central Europe, Middle East and India. The firm collaborates with academic institutions such as Tel Aviv University and Technion – Israel Institute of Technology for talent pipelines and research partnerships, and engages with industry groups like Israel Advanced Technology Industries.

Services and Industry Practices

Service offerings span statutory and voluntary audit engagements, corporate tax planning, transaction advisory services including mergers and acquisitions, due diligence, valuation, and consulting services in areas such as digital transformation, cybersecurity, and regulatory compliance. Sector practices focus on industries including Information Technology, Biotechnology, Pharmaceuticals, Fintech, Energy (including work related to Israeli natural gas discoveries), and Defense-related suppliers. The firm provides IPO readiness services for companies aiming at listings on the Nasdaq or the Tel Aviv Stock Exchange, and works with venture capital firms like Pitango Venture Capital and Sequoia Capital-backed startups. It also advises multinational clients such as Intel, Pfizer, and Microsoft on local tax and transfer pricing matters.

Market Position and Financial Performance

Ernst & Young Israel is positioned among the leading international accounting networks operating in Israel alongside competitors from the Big Four such as Deloitte Israel, KPMG Somekh Chaikin, and PricewaterhouseCoopers Israel. Market share in audit and advisory segments reflects relationships with large public companies listed on the Tel Aviv Stock Exchange and international groups with Israeli subsidiaries. Financial performance is reported to the global network rather than as an independent public company; revenue and profitability metrics are therefore consolidated, while local growth trends mirror expansions in Israeli high-tech exports, cross-border M&A activity, and capital markets operations exemplified by transactions involving firms like Mobileye and Wix.com.

Corporate Social Responsibility and Diversity Initiatives

The firm participates in corporate social responsibility programs aligned with the parent network’s strategies, including pro bono advisory for non-profit organizations such as Latet and Leket Israel, sustainability reporting aligned with frameworks like the Global Reporting Initiative, and support for entrepreneurship through accelerator partnerships such as Startup Nation Central. Diversity and inclusion initiatives address gender balance, LGBTQ+ workplace policies, and integration of minorities, collaborating with organizations like Rabin Medical Center and academic outreach programs at Ben-Gurion University of the Negev. Talent development includes internal mentorship, leadership programs, and cooperation with vocational training institutes.

Controversies and Legal Issues

As with major accounting firms operating in complex regulatory environments, the firm has faced scrutiny related to audit quality, independence, and advisory conflicts in Israel’s dynamic corporate sector. High-profile corporate failures and disputes involving Israeli public companies have occasionally prompted inquiries by the Israel Securities Authority and media coverage in outlets such as TheMarker and Globes. Legal and regulatory challenges reflect broader international debates over auditor rotation, non-audit services, and enforcement actions observed in jurisdictions like the United Kingdom and the United States.

Notable Clients and Engagements

The firm has been engaged with a range of prominent Israeli and multinational clients, including technology companies involved with Intel-related supply chains, pharmaceutical firms such as Teva Pharmaceutical Industries, and fintech enterprises listed on the Nasdaq and the Tel Aviv Stock Exchange. Engagements have included IPO preparations, cross-border M&A transactions with partners like Goldman Sachs and Morgan Stanley, carve-outs, and due diligence for private equity investors including The Carlyle Group and KKR. The firm’s advisory work has intersected with major infrastructure and energy projects connected to entities like Noble Energy and national regulators.

Category:Accounting firms of Israel Category:Professional services networks