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BDO financial results 2013

Sustained growth sets up BDO to lead market consolidation 

  • Focus on expansion sees revenues grow 7.3% to $6.45bn
  • More than 20 mergers completed in past twelve months
  • BDO predicts far-reaching shake up of accountancy mid-tier in 50th anniversary year

BDO today announced a total combined fee income for the year ended 30 September 2013 of
US$6.45bn / €4.92 bn – a 7.3% increase in US dollars. BDO is now represented in 144
countries.

The growth is attributable in part to a series of strategic mergers to augment organic growth,
a number of which have already delivered significant impact. BDO’s UK member firm merged
with PKF in March, resulting in a firm of 3,500 people with revenues approaching £400m and
is in a strong position to lead the consolidation of the profession’s mid-tier in the UK. BDO
USA realised three mergers in the past year, resulting in the addition of more than 250 staff,
including 24 partners.

In Australia, BDO built on last year’s East Coast practice merger by merging with PKF Business
Advisers Pty Ltd in Adelaide. The combined firm brings this territory’s revenues to AUD25m,
making it one of the largest accounting and advisory firms in South Australia. In New Zealand,
a merger with RHB Taurunga will be consolidated in 2014 when the BDO firm merges with PKF
Ross Melville in Auckland, both parties having announced their intention to merge in August
this year, which will take the firm’s headcount to over 800 people, including 86 partners. BDO
Denmark consolidated earlier merger activity in Scandinavia with four regional mergers
adding seven offices and over €11m in revenues.

Martin van Roekel, CEO of BDO said: “We have seen a strong twelve months, increasing
turnover and delivering strategically important mergers. Within the next five years, we
anticipate that the global consolidation of our profession will gather pace, leaving only 2 or 3
substantial mid-tier networks globally. The decisions we have taken in 2013 have put us in a
leading position to be among those remaining. Only those with financial reserves will break
away and our growth this year creates a platform for a future programme of mergers that we
believe will lead the consolidation of the mid-tier and will increase both our revenues and the
number of countries in which we have a presence.”

The revenue splits per region have remained similar year on year, with standout results in key
regions as follows:

  • EMEA: this newly combined region grew 6.63% as a whole, with revenues in Europe
    and the Middle East both increasing by more than 7% year on year. Outstanding
    performances came from the Slovak Republic, Armenia and Norway in Europe, with
    Jordan and Qatar leading the way in the Middle East
  • Americas: strong performances from the US, Puerto Rico and Bolivia contributed to
    6.62% growth overall. Revenues in the Caribbean increased by 26% - the fastestgrowing
    of all the sub regions - while in Latin America, their revenues grew by more
    than 11%
  • Asia Pacific: in this region, an increase in revenues of 4.26% was driven largely by
    growth from Indonesia, Singapore and China.

 

Martin van Roekel commented: “Performance has been consistently strong in markets all over
the world, with particularly impressive growth in the Americas. We expect this to continue in
2014, especially in China where BDO Li Xin continues to realise impressive growth and is the
market leader in serving state-owned enterprises in China.”
 
Fee splits remain similar to previous years, with audit and accounting making up 59% of
revenue, tax services bringing in 20% and advisory services 21%. Martin van Roekel added: “In
the 50 years since BDO was founded, the operating environment for us and our clients has
changed dramatically, shaped by forces including regulation and globalisation and changing
client needs and expectations.
 
“Clients today are looking for more than numbers and standard service delivery and that’s
why we are seeing consolidation - small and medium-sized companies are increasingly seizing
opportunities for international expansion and so require professional services firms with the
ability to invest in expertise, global infrastructure and processes to help them navigate risk
across global markets. In addition, mid-sized companies have different needs – they expect a
tailored approach in each market and aren’t always best served by the largest firms, whose
focus is on the very largest companies. We firmly believe clients want relationships with
advisers that add real value, and we’re passionate about being a partner and delivering
exceptional client service for ambitious, growing businesses.”
 
-Ends-

 

Notes to editors

50 for 50

To mark its 50th year, BDO has launched 50 for 50, a globally-run social responsibility campaign which has enabled every firm to offer 50 hours’ worth of expertise, advice and practical assistance to either growing enterprises with a social purpose, and / or to charities and community organisations. Launched in the summer, the campaign has so far delivered over 2,500 hours’ worth of support in 39 markets, and includes causes ranging from teaching children how to save (South Africa), through to providing investment advice to social enterprises (Belgium).

About BDO

Service provision within the international BDO network of independent member firms (‘the BDO network’) is coordinated by Brussels Worldwide Services BVBA, a limited liability company incorporated in Belgium with its statutory seat in Brussels.

Each of BDO International Limited (the governing entity of the BDO network), Brussels Worldwide Services BVBA and the member firms is a separate legal entity and has no liability for another such entity’s acts or omissions. Nothing in the arrangements or rules of the BDO network shall constitute or imply an agency relationship or a partnership between BDO International Limited, Brussels Worldwide Services BVBA and/or the member firms of the BDO network. BDO is the brand name for the BDO network and for each of the BDO
member firms.

The combined fee income of all the BDO Member Firms, including the members of their exclusive alliances, was $6.45 billion in 2013. The global network provides advisory services in 144 countries, with more than 56,000 people working out of 1,264 offices worldwide.

Contacts
 
Dan Masser
Jessica Cain
Carley Sparrow
Blue Rubicon
Tel: (+44) 207 260 2700
bdointernational@bluerubicon.com