Baker Tilly Ukraine is planning to merge with Grant Thornton International’s Ukraine member firm, effective by the latest 1 January 2012.
Baker Tilly Ukraine said the merger will enable the firm to narrow the gap with the Big Four in country. The firms managing partner Alexander Pochkun told the International Accounting Bulletin the newly merged firm will now be positioned between KPMG, which is the smallest Big Four firm in the country and BDO.
“We have had a strong 15-20% organic growth in the past three years and we are now looking to grow additional 20 to 25% as a result of the merger,” Pochkun said.
“We are confident that this merger will strengthen significantly choice within the audit market in Ukraine, providing a new alternative to Ukrainian and international companies.”
Grant Thornton has already found a replacement for its former Ukrainian member in audit and consulting firm Legis Group. The firm will become a partner in the joint venture of Grant Thornton Armenia and Grant Thornton Cyprus, which will operate as Grant Thornton Ukraine.
The current Grant Thornton Ukraine managing partner Vitaliy Kazakov, who is moving to Baker Tilly, said the firm’s decision to withdraw from the Grant Thornton International network is balanced and deliberate.
“We are keen to improve the competitiveness of the merged company, as well as to leverage the industry experience of staff and partners,” Kazakov said.
Grant Thornton International said the new firm will have 50 staff and offer audit, tax and advisory services.
Grant Thornton International chief executive Ed Nusbaum said the network is, “delighted to have reached an agreement with Legis Group and its partners that allows us to strengthen still further our already strong presence across the CIS region”.
“We are also pleased that senior managers from our exiting firm will be joining the new firm to give continuity to clients.”