BDO RCS has acquired the audit and outsourcing practices of Baker Tilly International Brazilian member firm and could potentially become Brazil’s fifth largest firm.
The merger includes Baker Tilly Brasil’s audit and outsourcing operations in São Paulo and Ribeirão Preto, as well as the outsourcing operations from the office in Rio de Janeiro.
According to BDO RCS, projected revenues for FY15 as a result of the merger would reach R$ 160m ($ 42.9m), and total staff would be of 1,300 professionals.
According to International Accounting Bulletin latest Brazilian survey BDO RCS was the sixth largest firm in Brazil with revenues of R$ 112.6m in FY14, behind Grant Thornton Brazil who had revenues of R$ 140.1m in the same financial year.
In the same survey, Baker Tilly Brasil Auditores & Consultores reported revenue of R$ 30.8m, approximately half of the international network’s revenue in Brazil.
Accordingly this latest merger could trigger a reshuffle at the top of the Brazilian ranking tables, with BDO potentially taking the lead as the largest mid-tier player behind the Big Four and Baker Tilly International exiting the top 10 to the benefit of Moore Stephens International.
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In the single firm table, the merger could give way to Brand Reason (MSI Global) to enter the top 10.
Keith Farlinger, BDO CEO of Americas, said: "We are delighted about the success of this operation, which is the result of the union of two important players of the Brazilian market. This strategy will strengthen BDO brand both in Brazil and globally."
"We now operate as one team, after pulling together a group of solid professionals and shaping them in RCS. They include some of the most recognized names in the Brazilian audit market in the recent years. Today our leadership includes some of the founders and collaborators of Tufani, Reis and Soares, Nieto Auditores, Villas Rodil, and partners from Terco and Trevisan, among others", Raul Corrêa da Silva, CEO of BDO RCS, said. "We have combined tradition and excellence, structuring our firm to meet the requirements of large and medium-sized companies through a more professional, solid and transparent management."
At the time of publication Baker Tilly International was not available for comment.
Read International Accounting Bulletin latest Brazil survey here: Profession upbeat despite the downturn
Amended on 07/12/2015: This article was amended to reflect the fact that the merger only includes Baker Tilly Brazilian member firm’s Sao Paulo and Rio de Janeiro offices. The original article wrongly suggested that the merger involved the entire firm.