Monday, April 16, 2007

Number 5 and 6 Audit Firms Merge in Canada

In Canada, we hear of consolidations below the Big Four level. Canada’s Number 5 and 6 accounting firms, Grant Thornton LLP and BDO Dunwoody LLP have recently agreed to discuss a merger. The motive: to become larger and stay competitive with the Big Four firms. Yet the road is long: Grant Thornton audits only 3 of the top 100 TSE companies, while BDO Dunwoody audits none of those companies...


Anonymous said...

Must be a bigger story here, as it would it interesting to see what international firm the combined entity will go with: Grant or BDO. Perhaps BDO Canada has some sort of issue with the international organziation and wants out. These mergers are difficult, disruptive and there is always a "land grab" is this is almost a merger of equals.

Anyhow, I wonder what the real reasons might be for the decision to proceed with discussions. One of these firms has a big issue. S

Anonymous said...

I too wonder which firm will they pick. Seems to me BDO to be the strongest of the 2, especially in Europe and Asia.
I do think canadian clients will be better served internationally with BDO.
However gets it will be a major lost for the other international association.
The winners will always be RSM and Baker Tilly.