BDO Insights

Please see below selected intelligence about BDO.

 

 

June 2016

 

 

• BDO USA announced an expansion into the Utah market through the addition of 64 staff, including 10 partners, from Mantyla McReynolds, LLC.  Founded in 1989, Mantyla McReynolds provides a full range of accounting and consulting services to a diversified client base of public and private businesses.

 

 

 

May 2016

 

 

• Paul Eagland was named as BDO’s new managing partner, succeeding Simon Michaels who is set to complete eight years in the top job at the number six ranked firm, and has underlined BDO’s commitment to serving the mid-market. Eagland, who was elected following a vote of the 227 UK BDO partners, will take office on 1 October 2016. He has been at the mid-tier firm for 29 years and has been a member of the leadership team since 2008, most recently as head of national professional services. Previous key positions include head of national tax and head of national audit. BDO currently works for one third of the FTSE 350 in an advisory capacity. UK revenues have grown by some 40% in the last three years to £400m. There are 3,500 employees and partners in 18 UK offices.

 

 

 

April 2016

 

 

• In Sweden, BDO recently opened four new offices and also raided rival Grant Thornton, taking six partners and 14 professional staff. BDO now has more than 500 staff in 24 offices across Sweden.

 

 

 

January 2016

 

 

• BDO International expanded its global network with the appointment of BDO Francophone West Africa. The addition of BDO FWA provides BDO with a local presence in Ivory Coast, Niger and Togo, allowing it to better serve its local and international clients’ interests in West Africa. The firm will specialise in IT consulting and business advisory services and serves local and international companies as well as international development and local governmental agencies across West Africa.

 

 

December 2015

 

 

• BDO’s international network reported a 12.9% increase in global revenues to US$7.3bn, driven by a strong performance from the US firm where revenues topped $1bn and from emerging markets. Overall, the Americas region posted a 22% rise in fee income, while Asia Pacific was up 10% and EMEA by 3%. Revenues at BDO USA were up by 29%, fuelled by organic growth and the firm’s ongoing expansion strategy, which saw four significant mergers, including UHY in Texas, SS&G in Ohio and Chicago, Stone Carlie in St Louis and Cross, Fernandez & Riley, a former alliance firm practicing in central Florida. BDO now has representation in 154 countries. The number of offices has risen over 6% to 1,408 and global headcount numbers is up 8.2% at 64,303. The firm says there were 19 strategic mergers among network firms during the year and says this consolidation is one of the factors driving growth.

 

 

 

November 2015

 

 

• In Canada, BDO acquired Toronto-based H&A Forensic Accounting & Vancouver-based Majewski Shaler, its seventh and eighth acquisitions in the last 12 months. H&A specialises in personal injury insurance claims quantification. Its proprietary Virtual Office technology gives insurance companies and legal counsel a set of financial utilities to help them perform income loss and interest calculations.

 

 

• Wayne Berson was re-elected to a second four-year term as Chief Executive Officer of BDO’s US affiliate. During his initial three-year term as CEO the US firm’s revenues were up 70%, primarily in consulting. Prior to joining BDO, Berson was the Managing Partner of the Lang Group, a Washington, DC accounting firm that was merged into BDO in 2001. Berson was also elected Chairman of BDO International’s Global Board, beginning a three-year term 22 months ago.

 

 

• BDO USA meanwhile elected Joe Johnson, Karen Stone and Ted Vaughan to three year terms on the firm’s board of directors. Stone and Vaughan are new directors, while Johnson was re-elected to a new board term. Johnson also serves as the Managing Partner of the Assurance Practice in Orange County California. Stone is a partner and Office Managing Partner for tax services in Nashville and Memphis. Vaughan is a Dallas-based Assurance Partner, and is also BDO’s US Public Company Practice Leader. 

 

 

 

 

October 2015

 

 

• BDO Austria significantly expanded its operations in the country as it snapped up 65 professionals, including 10 partners, from Grant Thornton. The coup on Grant Thornton’s ranks sees BDO's headcount increase to more than 500 of which 40 are partners. The new staff, which have joined the firm's five offices across Austria, will add further accounting and consulting expertise to the firm’s clients in the areas of construction, not for profit, real estates, trade and commerce, and technology industries.

 

 

• BDO reported modest growth of 2% in its UK business, with revenues reaching £391m for the year end, compared with a 27% jump last year following the merger with PKF, with the insolvency business taking a hit and pulling down overall performance. This year’s UK fee income is slightly ahead of the £384m the firm reported in last year’s annual results, the first to fully reflect the merger the previous year with PKF. The recovery in the UK economy hit the restructuring arm of the business, with overall advisory fees, which include insolvency, as well as forensics, valuations, tax investigations and global outsourcing business, down £16.8m to £140.2m. In 2014, advisory accounted for £157m.

 

 

 

September 2015

 

 

• BDO announced the appointment of Tokyo XBorder Tax Co. (TXB) as its new tax firm in Japan. TXB will change its name to BDO Tax and become a BDO Member Firm on 1 October 2015. Established in 2002, Tokyo-based BDO Tax Co. will commence with three partners and 40 staff, specialising in international tax, expatriate tax, transfer pricing, bookkeeping, tax inheritance, payroll and social insurance services. BDO Tax Co. will provide complementary services to those offered by the existing two BDO audit firms operating in Japan, BDO Toyo & Co and BDO Sanyu & Co.

 

 

 

August 2015

 

 

• BDO Italy in a press release announced: "On July 23rd 2015 the aggregation among the businesses and professionals of Mazars and BDO in Italy took place, creating a single structure adhering to the BDO international network." Such aggregation represents the real alternative to the Big Four in the Italian market of auditing and professional service, the release continued. BDO International said they had nothing to add to this press release. At Mazars the situation was described slightly differently. "An independent, inappropriate and non-coordinated initiative was undertaken by part of the Mazars Italian partnership and part of the BDO Italian partnership, which has led to the announcement that the Mazars teams in Italy would be joining the BDO franchise in Italy," a spokesperson told International Accounting Bulletin. No Mazars team will join a competitor or operate under dual brand in Italy or elsewhere, the spokesperson continued.

 

 

 

July 2015

 

 

• The US affiliate of BDO International had fiscal 2015 revenues of $1.05 billion for the year ended 30 June, up 26% over last year’s $833 million in revenues. Consulting and Advisory led the firm’s 2015 growth, up 51.4%; followed by Tax, up 17.5%; and Assurance, up 17.5%. Assurance continues to represent a little more than half of revenues at 52%, with Tax at 32% and Consulting/Advisory now 16%. Advisory revenues for BDO International were 24% at the end of Fiscal 2014, but the fiscal year for BDO USA and BDO International aren’t lined up, and the latter doesn’t close until 30 September. Revenue growth for BDO’s US firm has increased by more than 70% in the last three years. BDO added 30 new partners effective July 1 – 22 of the partners are in the Assurance line, 7 are in tax, and 1 in the firms national office.

 

 

• BDO opened a small business accounting service based partly on the Xero cloud accounting platform. Called InTouch, the BDO package is designed to support clients with “current business performance information which can be accessed anytime and anywhere”.

 

 

 

• BDO USA will expand its audit, tax and consulting practices in Florida with the addition of 95 professionals and staff from Cross, Fernandez & Riley (C/F/R). Founded in 1963, C/F/R has offices in Orlando, Tampa, Winter Haven and Lakeland, serving clients across a range of industries, including technology & life sciences, nonprofit, manufacturing & distribution, real estate & construction, hospitality and healthcare. C/F/R had previously served as BDO’s Orlando office from 1970 to 2000, and the practice has been a member of the firm’s BDO Alliance since then. This brings BDO’s presence in Florida to more than 200. Upon completion of the transaction, nine partners will join BDO.

 

 

 

• In Australia, BDO announced the appointment of 22 new partners in its Sydney, Melbourne, Brisbane, Perth and Cairns offices. The firm now has 166 partners across 10 offices. BDO’s new co-CEO’s David Garvey and Grant Saxon commented to the AFR on the firm’s re-jigged leadership strategy. David Garvey said, “This new leadership structure takes away a layer of administration and allows us to be much more nimble in our decision-making processes, while also being more direct and transparent with the partners."

 

 

 

June 2015

 

• Nina Gross was named Global Forensics Practice Leader in the firm's Washington, DC office. Gross plans to expand BDO’s Global Forensics practice, providing investigation, anti-corruption compliance, anti-fraud training, due diligence and forensic technology services. Prior to joining BDO, Gross held leadership roles at Deloitte Financial Advisory Services, leading the firm’s FCPA Consulting Services practice in Washington, DC and establishing its Global Anti-Corruption Training Academy. She also served as Director of the Office of Legislative Affairs under Chairmen David Ruder and Richard Breeden at the US Securities & Exchange Commission - details.

 

 

May 2015

 

 

• BDO USA will expand operations in St. Louis, US with the addition of around 100 staff, including 8 partners, from Stone Carlie & Company. Founded in 1947 by Sidney Stone and Carl Carlie, Stone Carlie provides a range of accounting and consulting services to clients in construction, manufacturing & distribution, life sciences, technology, nonprofit, real estate, healthcare and professional services industries. The combination remains subject to customary closing conditions and regulatory approvals, and is expected to close by 1 June 2015. Stone Carlie was previously a member of the PrimeGlobal accounting group.

 

 

 

April 2015

 

 

• Outgoing Ryanair CFO Howard Millar was confirmed as chairman of BDO Ireland. "It's now mandatory that auditors have to be changed every 10 years and this is going to create an opportunity that wouldn't have been there before," claimed Millar. "This is going to benefit a firm of this size. It's going to really affect how accountancy and taxation services are offered." Millar says he sees parallels between the accountancy firm and Ryanair.  "I think there's a real opportunity for BDO to shake up things. Are they going to knock out one of the Big Four? I don't think so, but we have to start at some point. The economy is on the move - more expansion, more transactions, more mergers and acquisitions, that will all create increased opportunity."

 

 

 

December 2014

 

 

• BDO, the world’s fifth largest network of independent public accounting firms, announced that world-wide revenue for all member firms and alliances, for the year ended September 30, 2014, amounted to US$7.02bn. This represents an increase of 8.8% from last year. Revenues from assurance services accounted for 57% of combined fee income, with those for tax and advisory services representing 21% and 22% respectively. The BDO network now has 110 member firms, with just under 60,000 total staff operating from 1,328 offices in 151 countries around the globe. The network added new member firms in Fiji, Reunion Island, Bangladesh, Papua New Guinea and Sierra Leone. 

 

• The US Public Company Accounting Oversight Board inspected 23 of BDO's audits last year and spotted weaknesses in 65% of them, including a failure to test controls over goodwill, reserves and receivables, as well as a failure to test a client's method for calculating the revenue and value of certain financial assets.

 

 

 

November 2014

 

 

• BDO USA expanded its financial and consulting capabilities in Texas by acquiring the local practice of UHY Advisors. The UHY practice, through offices in Houston and Dallas, provides a range of services, with a particular focus on clients in energy, manufacturing, distribution, professional services, healthcare and real estate. This transaction remains subject to customary closing conditions and is expected to close at the beginning of December -  more details.

 

• BDO was appointed auditor to Vimto makers Nichols Plc, following a competitive pitch process which saw the firm replace incumbent Grant Thornton. As well as being famous for the Vimto soft drink, which was first made in Manchester in 1908 and is now sold in more than 70 countries worldwide, Nichols’ brand portfolio includes Levi Roots, Weight Watchers and Sunkist. Philip Storer, audit partner at BDO in the north west, said: ‘Nichols has great products and history, and is being driven by an impressive management team with a real passion for the business.

 

• BDO announced a 27% growth in UK turnover as it publishes its figures for the financial year ended 4 July 2014. The firm saw national turnover boosted to £384million. Operating profit increased by 42% to £78million.  The 2013/14 results are the first to fully reflect BDO's merger with PKF in April 2013.  All three of BDO's main businesses showed substantial growth. The audit business increased by 19% to £128million.  Turnover in the tax business grew by 21% to £99million and BDO's advisory business grew by 39% to £157million.

 

• The transformation of Ireland's accounting sector continues. Dublin firm BDO is closing in on Ireland's Big Four accounting giants, with plans to add 150 experienced staff. BDO says it is poised to benefit from new EU accounting rules.

 

• BDO USA acquired SS&G, a leading Midwestern US accounting and consulting firm. SS&G’s more than 375 staff, including 36 partners, from SS&G, Inc and its SS&G Parkland subsidiary will join BDO. SS&G has offices in the Cleveland, Akron, Columbus, Cincinnati and Chicago, and provides a full range of accounting and consulting services to clients in manufacturing, distribution, restaurants, healthcare, nonprofit services, real estate, technology and other industries. The combination is subject to customary closing conditions and is expected to be completed on 1 January 2015.