BDO and Moore Stephens are in talks to create the fifth-largest accountancy, consulting, insolvency and business recovery firm in the UK.
The proposed deal relates only to Moore Stephens LLP, consisting of the London, Birmingham, Reading, Bristol and Watford offices of the current Moore Stephens UK network. In London, BDO – with its head office in Baker Street – plans to take on a second office in the City to accommodate the growth and retain the city-based presence for clients after the merger.
Both currently top ten businesses, the combined firm will have gross annual revenue of £590m, with a headcount of around 5,000 people across the UK. The firm will take on the BDO brand, as it will remain part of BDO globally, the largest mid-tier accountancy organisation in the world with revenues of over $8bn (£6.2bn) and operating in 162 countries.
Partners of both firms have voted in favour of the merger, subject to final contracts.
Paul Eagland, managing partner of BDO, said: “We’ve always said that size isn’t a proxy for quality. A driver of this merger is one of sustainable and profitable growth that benefits our clients, people and capital markets alike.”
Simon Gallagher, managing partner of Moore Stephens, said: “To be entering final discussions to create the largest UK accountancy firm focused on entrepreneurially-spirited and fast-growing businesses is exciting – and critical for market competition. The proposed merger provides a platform for continued, sustainable growth, as well as offering something different to the market at this important time.”