Annie Kong, audit manager of BDO Guangdong Dahua Delu CPAs, said the merger allows the firm to provide more services to international clients that it otherwise couldn’t offer. “Before the merger we didn’t have branches in some areas that our overseas clients would have liked. We now have branches in different cities so our network has extended and we are able to offer more to these clients,” she said.
Kong said that BDO’s approach to the market was a notable reason for the merger. She said joining BDO allows individual members to retain their independent expertise, while being able to leverage the talent, quality control and clients of the world’s fifth largest international network.
The merged firm will have about 500 staff, including 15 equity and 22 salaried partners. Kong predicts the move has placed the firm as the fifth biggest in the nation in terms of a staff head count.
BDO Guangdong Dahua Delu CPAs’ revenue for 2007 was CNY120 million ($17.5 million) and is projected to reach CNY150 million ($22 million) for its 2008 financial year-end.
Kong wouldn’t indicate whether BDO China firms were planning to combine into a single Chinese entity, although she said such consolidation is a growing trend that is taking place all over the country at present.
“The Chinese domestic market is very huge, so firms are merging together all over the nation so they can compete with the Big Four,” she said. “If you want to survive in the market, you have to become bigger and stronger.”
Melanie White and Arvind Hickman