Ernst & Young Brazil has confirmed it will join forces with former Grant Thornton firm Terco, creating a firm with 3,200 professionals that has the second largest share of Brazil’s listed audit market.
Ernst & Young Terco will have 11 offices in Sao Paulo, Rio de Janeiro, Porto Alegre, Curitiba, Blumenau, Campinas, Salvador, Recife, Brasilia, Belo Horizonte, Goiania.
The firm will provide assurance, advisory, tax and transaction advisory services to fast growing domestic entrepreneurial companies and multi-nationals.
Jorge Menegassi will be the firm’s chief executive and Luiz Frazão will be chief operating officer. Mauro Terepins, from Terco, will assume a vice-presidency role.
Middle market leader
Terco has established itself as a leading firm to the middle-market sector with more than 1,400 clients. Terco reported fee income of BRL111m ($63m) in the year to 30 September 2009, and had 21 partners and 630 professionals. In addition to buying market share, E&Y will gain a prominent position serving Brazil’s entrepreneurs, an important sector for foreign investors.
Steve Howe, Ernst & Young’s Americas managing partner, commented: “Mauro Terepins founded and built Terco to be the pre-eminent organisation serving high-growth middle-market companies in Brazil. It is wonderful to welcome him and his entire team and to have Mauro in the critical leadership role of managing partner for markets for the combined Ernst & Young Terco firm.”
E&Y is investing significant money to build market share in BRIC countries. E&Y has the largest firm in India and says it is the largest firm in Russia – a claim this publication can not verify due to a lack of transparency. E&Y is the second-largest firm in China. In Brazil, PwC has more than 3,200 professionals and the Terco buyout means E&Y has a similar sized workforce (see graphic below). Deloitte is the largest firm in the country.