BDO has broken its partnership with the
Mexican member firm Hernández Marrón and signed up former Crowe
Horwath member firm Castillo Miranda y Compania as its
replacement.
Castillo Miranda y Compania has 320 staff in
four offices across the country. The firm reported revenues
of €13.1million ($17.8 million) in the year to 31 December
2010.
The former BDO firm Hernández Marrón was told
by BDO a separation was appropriate late last year due to the
firm’s flat performance in the past few years.
BDO chief executive Jeremy Newman told the
International Accounting Bulletin that for 12 months BDO
had expressed concerns to Hernández Marrón and encouraged the firm
to address them.
“They did not do so,” Newmann added. “BDO does
not change member firms lightly, particularly in such an important
economy. We gave Hernández Marrón every opportunity to address our
concerns and resolve certain issues before deciding that our other
firms were best served by having a new member firm in Mexico.”
Switching was ‘tough’
Castillo Miranda y Compania managing partner
Carlos Garza y Rodriguez said making the switch from Crowe Horwath
to BDO was one of the toughest professional decisions of his
life.
“We were very comfortable as a member of Crowe
Horwath International for 23 years,” he said.
Rodriguez said being with BDO enables the firm
to reach a higher playing field and can offer more growth.
“They (BDO) have a commitment with me and my
partners to increase volume, revenues, quality and the net income
of each partner. It was my obligation to take this offer to all of
my partners,” Rodriguez added.
Newman said they chose the Crowe Horwath
affiliate due to the size and strength of the new firm, as well as
the quality of its client base and growth potential.
Rodriguez said under BDO, the firm has already
started to grow as several of the old BDO offices have crossed over
to the new firm or have indicated they wish to do so.
