PKF and BDO - can mergers boost competition?

Rumours are beginning to circulate in the London market of a merger between BDO and PKF in the UK.  Terms have, apparently, been agreed but the deal has not yet been put to the PKF partners.

No doubt the rationale put forward will be that a merged firm, with combined revenues of approximately £430m, will be in a stronger position to compete with the Big 4.  And increased competition is something which many in Brussels and Westminster have been advocating strongly in recent months.

But life is not as simple as that.  Even with combined revenues of £430m, the firm would still be over £1bn smaller than Ernst & Young, the smallest of the Big 4, and there has to be a real question as to whether there would be any fall out from disgruntled partners - or clients.

This will be an interesting one to watch.

 

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