BDO ScanRevision claims a recent acquisition has moved it to
within a fraction of overtaking Ernst & Young as Denmark’s
fourth-highest fee-earning accounting firm. BDO ScanRevision
acquired large public sector audit firm Kommunernes Revision (KR)
last month from Kommunernes Landsforening (Local Government
KR will continue as an independent company under the name BDO
Kommunernes Revision (BDO KR) focussing on the audit of local
authorities, consultancy, administrative services and training
BDO ScanRevision chair Henrik Brünings said official figures
recorded Ernst & Young (E&Y) Denmark as earning fee income
of €97 million ($142 million) in its most recent financial year.
Prior to the acquisition, BDO ScanRevision was the fifth-largest
accounting and consulting firm in Denmark with a fee income around
€70 million. The new addition kept BDO ScanRevision in fifth
position but pushed the combined revenue of both firms to €95
million, only €2 million short of E&Y.
“We have a strategy that says we want to grow further and the focus
is especially on the four biggest cities in Denmark. We are
interested in further acquisitions but it will not be in the next
six months,” Brünings said.
BDO KR’s capabilities in consultancy work for local government was
one of the reasons for the purchase. It has an almost 60 percent
market share of the local government audit sector, and audits 17
municipalities (local authorities) in Greenland. The recent
consolidation in Denmark of 174 municipalities into 98 larger units
added to its appeal.
Brünings explained: “The bigger the municipalities get, the bigger
the issues. Therefore we see a higher need for consultancy work in
those municipalities because they have had a transformation where
they are more like businesses.
“[The addition of BDO KR] makes BDO a full-scale audit and
consultancy company. By this acquisition we match the Big Four
totally; we are able to service all sorts of clients.”