The British practices of BDO and PKF are merging. The merged firm is continuing under the name BDO. Because of this merging, BDO has 3.500 employees, divided over 19 offices, making this firm almost as large as Grant Thornton in the UK. The merging will probably be finalized by the third quarter if the year 2013. This is what both advisory firms together announced in a press message.
Prior to this merging, BDO was the sixth biggest financial service provider in the UK. After the merging BDO has over 3.500 employees listed on their payroll. Their turnover mounts up to over £400 million, thereby remaining on the sixth place and closing the gap with number 5 Grant Thornton (£417 million).
The merging of PKF UK and BKO UK delivers a mind blowing strike to PKF International because the British branche is one of the biggest member firms. Although PKF was approximately a quarter the size of BDO, it had relatively better profit margins. One of PKF’s strengths is that almost half of its business comes from non-audit work, such as tax advice and management consulting, which tends to have better margins.
“The partners of BDO and PKF are very satisfied with merging. Because of this merging we even become a stronger player in accountancy and advisory markets. Also, we are better capable of competing with Big Four offices” said Simon Michaels, Managing Partner of BDO UK.