BDO confirms PKF merger plan

ACCOUNTANTS and business advisers BDO and PKF have confirmed that they intend to merge to create a “new force” in the accountancy sector.

BDO is the UK’s 6th largest firm with fee income of £281.5m and PKF the 12th.

The deal, which was first mooted in the summer, will see PKF’s UK business separated from its international operations.

Integration in the North West at least should not be problematic – as both firms already occupy the same building, 3 Hardman Street in Spinningfields.

A formal statement said the parties are planning to create a “new force” in the accountancy market, with a merger taking place in early 2013.

The combined firm will employ 3,500 people in the UK generating revenues approaching £400m.  It will trade as BDO.

The statement said: “This will be the first proactive strategic merger in the UK accountancy market for 15 years and reflects both firms’ sustained commitment to growth in their mid-market heartland. The merged firm will be uniquely placed to offer greater choice and quality and demonstrates an appetite to invest.

BDO’s managing partner Simon Michaels, said: “Our two firms share a closely-aligned vision to lead in the mid-market, as well as similar cultures and a commitment to deliver exceptional client service. The merged firm will have a strong balance sheet, as well as unrivalled sector and geographic strength in many areas.

“The PKF team will enhance and complement our offerings to clients, bringing consulting expertise along with wide experience across audit, tax and advisory arenas. This exciting development demonstrates that both firms are ambitious for growth.”

Martin Goodchild, managing partner at PKF (UK) added: “This is a good strategic decision for both firms who have a desire to lead, from a position of strength, the inevitable consolidation of the mid –tier which is long overdue.”