Comments on: BDO and Grant Thornton in Canada discuss merger

By: Neil

Neil — Fri, 11 May 2007 23:39:14 +0000

Hi Rui - Thanks for your comments! It's strange you posted this today though, since BDO and GT here announced they have called off the merger. See my post about it here. I have a feeling we will hear about more mergers in the future...

By: Rui

Rui — Fri, 11 May 2007 10:51:11 +0000

Does anyone know which firm will they pick? I’m stressing out because the firm I work for in Portugal do have plans to merge with GT or RSM. So if the canadian firms merge with GT i guess partners would pick GT in a blink.
Keep me in touch guys!!!

By: Grant Thornton UK merges with RSM Robson Rhodes / NeilMcIntyre.ca

Grant Thornton UK merges with RSM Robson Rhodes / NeilMcIntyre.ca — Sun, 06 May 2007 20:39:34 +0000

[…] in the UK that Grant Thornton would merge with RSM Robson Rhodes comes hot on the heels of the announcement in Canada that BDO Dunwoody and Grant Thornton here would enter into discussions on the possibility of merging. The partners of Grant Thornton UK LLP and RSM Robson Rhodes LLP have […]

By: Neil

Neil — Thu, 19 Apr 2007 02:36:38 +0000

I think we can safely say it’s past the rumour stage!

By: Krupo

Krupo — Mon, 16 Apr 2007 05:12:28 +0000

Wow, that *is* huge news indeed. Or a meaty rumour, anyway.

I wonder whether the global offices may try to kibosh the move, or whether they may even mimic it?

It’d be interesting to “up” the group from “big four” to “big five”, but as you allude to in your posting, aside from a headcount perspective, some would argue that BDOGT would also need to win some big clients to increase the absolute revenue numbers.

In that vein, it’s interesting to see McBeath say “We don’t want to be part of a Big Five. We want to be a clear alternative to the Big Four.”

I’ve heard that BDO wants to move up to the Big Four/Five ranks, whereas GT is happy with its current position.

The difference the GT head enunciates in thate quote is subtle but critical. I wonder how much of an effect it will have?

By: Neil

Neil — Mon, 16 Apr 2007 02:17:04 +0000

Edmund — Thank you for your comments!

You’re right about there being some potential for job losses on the HR side, and I would assume in the IT departments too. It’ll definitely be interesting to see where these discussions go, and whether the two firms become one in the future.

By: Edmund Murphy

Edmund Murphy — Mon, 16 Apr 2007 02:04:13 +0000

I agree that if the merger goes through, there are unlikely to be job cuts with professional staff, but the non-prof. workers are a different story. There would be duplication of support functions in the merged company, and I would expect layoffs in that area. Even if a non-prof. staff member does not lose their job, they may be demoted — e.g. both BDO and GT have directors or HR, but the merged company can only have one head, so the loser will have to work as a subordinate for the winner, or get a lateral transfer. In mergers, it is often middle management who suffer them most.