Mid-market accountants go international

MID-TIER accountancy firms are taking a larger share of the international market, according to the boss of global assocation for independent firms, IGAF.

President Kevin Mead believes mid-market firms are taking work from the ‘Big Four’ accountants – KPMG, PriceWaterhouseCoopers, Deloitte and Ernst & Young – as well as benefiting from economic growth in Asia and countries such as Brazil and Russia.

Mr Mead is overseeing the merger of Atlanta-based IGAF with two other international accountancy associations Polaris and Fidunion. The deal is expected to go through by the summer to create IGAF Polaris with 385 member firms in 88 countries. He was in Manchester visiting IGAF member firm Hurst. Members pass work to each other and share working practices.

He said: “We’re now seeing money coming out of the BRIC economies into developed economies. Our firm in Vietnam used another member firm in Los Angeles to advise a Vietnamese construction business that was carrying out a takeover in the city.

“We’ve also seen outbound investment from China into the UK, but we’ve got way more going the other way. The new twist in globalisation is it’s now bilateral.”

IGAF was founded in 1977 and now has 135 members in 75 countries. Hurst’s director of practice development Simon Brownbill said membership had helped drive revenue and give the firm new ideas.

“Through IGAF we have supported colleagues in the States. US firms will come to us to carry out audits of subsidiary companies. We’ve also had teams in Belgium, Switzerland, Austria and CVhina delivering work for member firms.

“It has allowed us to compete with the bigger firms as well as benefit from knowledge transfer and shared learning.”