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.