The new firm will have 3,500 members of staff in the UK generating revenues up to £400m. Even if it achieves this level of fee income, the expanded BDO will be set to challenge Grant Thornton as the UK's fifth biggest accounting firm.
Simon Michaels, managing partner of BDO, said: “This is transformational, for our two firms but also the broader market. We’re delighted that two firms with similar cultures and a focus on client service will combine to create an even stronger entity next year. The merged business will have firm financial foundations and an ambition to grow.
“Both firms employ many talented people capable of delivering quality work to a range of clients, across audit, tax and advisory.”
Martin Goodchild, managing partner at PKF, added: “The strategic decision to merge has now been made by the partners of both firms. Our primary focus as we move to completion will be to ensure both our clients and people benefit from the merger; they will be working with a resilient partnership leading from a position of strength and with a client service ethic at its heart.”
The new mid-market force will be a member of BDO International, which has revenues of more than US$6bn and operates in 138 countries.