Dundee-based EQ Accountants, a Kreston International member firm, and Carters of Glenrothes are to merge, effective 1 April 2015.
The resulting firm, which will take the name EQ Accountants, expects the merger to increase EQ’s turnover by 50%, from £4m to £6m. The firm will count 100 members of staff, including 16 partners and four offices.
The newly formed firm still has to officially confirm if it will stay within the Kreston International network, but unofficially it is most likely, International Accounting Bulletin has learnt.
The move is the latest deal in a dynamic year for the UK’s professional services networks, with consolidation high on the agenda.
In April this year, Baker Tilly UK joined RSM International, shortly after acquiring struggling RSM Tenon as part of a pre-pack deal.
Consequently, Baker Tilly International acquired MHA Macintyre, a Morison International member firm.
Meanwhile, PKF rebuild its presence in the UK following the merger of its UK member firm with BDO UK in early 2013. The network has since added five member firms and reported £76m in total fee income in the UK in the year to 31 May 2014.
IAB’s 2014 UK survey will feature in the December issue and might still hold some surprises.
While the two top spots are set to remain unchanged, KPMG and EY are racing each other for third place in the ranking. In the previous survey, only £60m separated the two networks, with KPMG reporting £1,782.0m in the year to 30 September 2013 and EY reporting £1,721.0m in the year to 30 June 2013.
However the moves at mid-tier level might prove to be most interesting as the impact of the recent M&A activities on the rankings has yet to be determined.