The UK arm of accountancy and business advisory giant BDO is in merger talks with its Irish counterpart, highlighting a clear ambition for growth.
The potential merger would be a landmark moment for both businesses. It would create one of the biggest accountancy firms in Europe, focusing on the entrepreneurial, growing, and ambitious mid-market heartland.
The firms are in the final phase of discussions to merge, subject to approval from partners, regulatory approval, and completion.
Once agreed, the new organisation would bring together the UK firm’s existing 18 locations, including London, with the Irish offices in Dublin and Limerick.
It would create an international business with revenues of nearly £1.1bn (€1.26bn) and 8,500 employees, as well as over 540 partners.
The merger would broaden the firm’s offering across audit, tax, deals, consulting, risk & and outsourcing across a range of growth sectors across the UK and Irish economies.
However, this merged firm would still remain part of the $15bn BDO International network.
Growing mid-market clients
Commenting on the deal, Mark Shaw, managing partner at BDO UK, explained: “This would be a landmark merger for both firms and demonstrates the ambition we have for our business, our people and our clients.”
“Our client heartland is the ambitious, growing, and entrepreneurial mid-market. These businesses are increasingly looking for support on a range of cross-border issues. In this environment, where markets are more interdependent than ever, it makes sense that we look at ways to collaborate even more closely with our international colleagues, hence this proposed merger,” he added.
While Brian McEnery, managing partner at BDO Ireland, added, “BDO UK and Ireland have worked closely together for more than 40 years. For us, this is a logical step, one that is partner-led and brings us together as one team for the benefit of our people and our clients.”
Over the last year, private equity interest in the professional services sector has surged, particularly for firms with accounting divisions.
Earlier this week, the Financial Times reported that executives at BDO were exploring the use of private capital to merge its member firms, in a push to rival Grant Thornton’s decision last year.
However, last Friday, accountancy firm RSM UK opted to avoid private equity by greenlighting a merger with its US sister, RSM US, to create a $5bn (£3.75bn) new partnership structure.