DFK International and Moore Stephens International UK member firms are to merge, effective 1 May, and the amalgamated firm will trade under the Moore Stephens’ brand, resulting in yet another reshuffling wave in the UK accounting firm rankings.
Chantrey Vellacott DFK will merge with Moore Stephens and the combined partnership will take the Moore Stephens name while becoming a member of the Moore Stephens International network.
This latest move in the UK market could have some repercussion on the ranking of global networks and associations in the UK as Chantrey Vellacott DFK is the 21st largest firm in the country with fee income of £31m in the year to 31 December 2014.
In the associations ranking, DFK International who ranked as the fourth largest association in International Accounting Bulletin (IAB) latest UK survey, with total fee income of £66.9m, could drop to eighth place.
In the networks ranking, Moore Stephens International who reported in IAB latest UK survey revenues of £129.7m in the UK and ranked as the 10th largest network, could overtake Mazars in ninth place.
Probably with this prospect in mind, Moore Stephens senior partner and chairman of Moore Stephens International Richard Moore said: "The merger is a fantastic opportunity, not just for the two firms but the Moore Stephens International network, which will be stronger as a result."
Moore Stephens managing partner Simon Gallagher highlighted that the partners and staff were central to the merged firm’s strategy going forward.
"The merger provides genuine career and development opportunities though innovation, growth and financial success," he said. "It’s going to be a really exciting time for our people, and I’m sure this will translate into the service we provide to clients."
The new firm will be led by Gallagher while Moore will remain as senior partner and Chantrey Vellacott managing partner Mike Tovey will be joining the firm’s partnership executive committee.
Contacted by the IAB, DFK International said in a statement they had been notified of Chantrey Vellacott merger and of it terminating its membership with DFK.
"Chantrey Vellacott has been an independent firm for more than 200 years and a member of DFK for more than 25 years, so this is a particularly noteworthy event in the history of the firm and DFK," the statement reads. "The firm has played a huge part in making DFK International the successful and thriving association that we enjoy today, so we owe them a debt of gratitude. We wish them well in their new venture."
DFK International also stated that they are working with DFK UK & Ireland to identify a new member firm in London. "This development also presents great opportunities to bring in fresh blood and a reinvigorated approach to the organisation," the statement reads.
This latest announcement comes a few months after MHA MacIntyre Hudson joined Baker Tilly International from Morison International, in a snow ball effect of Baker Tilly International losing its UK member firm to RSM International at the beginning of 2014.