Combined firms will operate under the BDO brand
Accountancy firms BDO LLP and PKF (UK) LLP have agreed to merge.
Partners of both firms have approved merger terms – expected to complete by the spring of 2013 –and the combined entity will operate under the BDO brand.
The merger will create a firm with 3,500 employees – including 205 in Scotland - and is expected to generate revenues of around £400 million a year in the UK.
PKF has two offices in Scotland in Edinburgh and Glasgow each employing 40 and 70 staff respectively and BDO has one office in Glasgow employing 95 staff.
The two Glasgow offices will “co-locate” following the merger and the Edinburgh office will continue to operate under the BDO brand.
A spokeswoman said there would be “limited reductions” in staff as a result of the merger, mostly in back office and administrative roles, adding the merger is being made with “growth in mind”.
“The merger is designed to build on our shared commitment to client service so we won’t be doing anything that detracts from our teams’ abilities to deliver exceptional service,” the spokeswoman said.
“We do not, therefore, envisage any reduction in fee-earning roles, nor in PA and secretarial roles.
“There may be limited reductions in the number of locally-based operational and administrative roles, where merged offices result in duplication.
“Enlarged practice management departments (support services) are also likely to result in duplicated roles, leading to some reductions.”
The merged entity will be a member of BDO International, which operates in 138 countries globally and generates more than $6 billion (£3.73 billion) a year in revenues.
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.”