BDO and PKF flirt with merger

The UK’s sixth largest audit firm BDO is reported to have agreed a deal in principle to acquire rival firm PKF.

As reported in the Daily Telegraph, the deal will see PKF’s UK business separated from PKF International and incorporated into BDO.

The article references the managing partner of PKF, Martin Goodchild, agreeing to the broad terms off a deal. Goodchild is yet to put this to the firm’s 70 UK partners, but the agreement could include an “equity sweetener” for PKF’s partners - offered in the form of a guaranteed profit share scheme.

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Paulsoper | | Permalink

When I worked for Stoy Hayward 40 years ago (ultimately to become BDO) the firm was proud to be the largest firm in West End of London but claimed they had no ambitions to expand beyond Wigmore Street where they were then located.  How times change...

"Organic" good, merger bad

chatman | | Permalink

When I was there they always boasted about how their growth was "organic", as they called it, and not by merger and acquisition. They made a big thing of this. These were the days of Sock Shop, Polly Peck etc.

Steve-EBL's picture

Acquisitive

Steve-EBL | | Permalink

Whilst there at it, why dont they buy up RSM tenon whilst its very cheap.

40 years ago    1 thanks

david5541 | | Permalink

"When I worked for Stoy Hayward 40 years ago (ultimately to become BDO) the firm was proud to be the largest firm in West End of London but claimed they had no ambitions to expand beyond Wigmore Street where they were then located.  How times change".

40 years ago seems along time ago but it was only 1982 and the prelude to the lawson boom/financial deregulation for which we paid a price for in 2008 and are still living on borrowed money-/deregaulation of the accountancy and audit market through increase of the audit threshold and consolidation among the audit elite as well-now the big 4 then the big 8.

not many lessons learned since eh?

robert lovell seems to have forgotten to mention:

The house of Lords enquiry(which included Lord Lawson) that criticised regulation of the heavily consolidated audit market; the privatisation/sell off of the audit commision("auditors of local authorities") and that not only are BDO GT and PKF campaigning against control of the audit market by the Big 4-in the listed company sector- but also MAZARS (who adopt the more international french approach to audit. 

 

Some of us can still add up or indeed subtract!    1 thanks

Paulsoper | | Permalink

Errr 40 years ago was 1972 - rather than 82 - It was a Tory Government under Heath but one still committed to high rates of tax and a managed economy, one where it was recognised (?) that very high rates of tax (96.25% to become 98% in the following year following merger of Surtax and Income Tax) could only be applied if there were safety valves - blatant avoidance was counteracted but if you kept wthin the rules liability could be minimised.

To paraphrase ...    1 thanks

dwgw | | Permalink

If you can remember the 70s, you weren't really there.

Or something like that. Perhaps that's david5541's philosophy.  ;-)

Personally, I was more concerned back then with the price of sweets increasing after decimalisation and buying Shoot magazine every week.

Nooo....    2 thanks

Paulsoper | | Permalink

If you can remember the 70's you were there - worst fashions, Ted Heath and then Jim Callaghan - the only fun was Dennis Healey who promised to squeeze the rich until he made the pips squeak - regular power cuts - working by candlelight - I kid you not - The winter of discontent and then... Maggie - aaaaarrrggghhhh!

Steve-EBL's picture

Then maggie and    2 thanks

Steve-EBL | | Permalink

Maximising shareholder wealth ideology, which 20 or so years later brings the global economy to its knees,

I heard a rumour this was off

The Limey | | Permalink

Has anybody heard anything recently? I heard a rumour last week that it was off.