Appointment of new member firm in Brazil for BDO

The new firm's chairman and CEO, Raul Correa da Silva, founded the firm in 2001: BDO RCS Auditores Independentes was formerly part of the Crowe Horwath network. The firm has grown through a number of mergers in the past 5 years and currently has some 250 partners and staff, working from 6 offices across the country. Their fee income in 2010 amounted to over R$20 million (€9 million). Audit and accounting make up the bulk of their revenues but they also offer a full suite of tax, corporate finance, risk management and other services.

BDO also announces that the current BDO Member Firm in Brazil is being acquired by KPMG, and that the acquisition is due to be concluded on 31 March 2011. The relationship between BDO and its outgoing firm in Brazil remains good, and the firm will complete all ongoing work on BDO referred clients on the previously agreed terms. The former firm has also confirmed that they will assist with the smooth transfer of referred clients to the new BDO Brazil. All efforts will be made to minimise any inconvenience to clients.

Eduardo Becher, Regional Senior Partner for BDO in Latin America, says: “We are delighted to welcome BDO RCS Auditores Independentes to BDO. We are confident that the new BDO Brazil has the capability and capacity to handle all our work in the country. Furthermore, we have a commitment from certain partners and staff in our existing firm that they will stay with BDO; this will enable us to ensure continuity of service to our clients”.

“This association with BDO is an important step in our growth strategy”, says Raul Correa da Silva, Chairman and CEO of the new firm. Becoming part of the world's fifth largest accountancy network will enable us to increase our services to the upper middle market and at the same time serve major players, benefitting from BDO's experience and expertise with large multinational listed clients”, he adds.

Jeremy Newman, CEO of BDO, is understandably disappointed by the loss of the former firm, but is equally delighted that a successor has been established so rapidly.

“BDO is not the first firm to have suffered as a result of our larger competitors using their dominant financial position to buy market share and we have expressed our concerns about this in BDO's recent submission to the European Commission's Green Paper on the role of the audit profession.

These tactics are not driven by client needs but by one firm's wish to buy market share and presumably achieve further economies of scale. We are concerned that when one firm looks to dominate it reduces choice for clients and leaves the market worryingly dependent on just a few players. BDO will be lodging an objection to this deal with the Brazilian competition authorities.

However, the strength of BDO is demonstrated by our new firm in Brazil which will enable us to continue to deliver the best possible professional advice and the high quality seamless service that our clients expect, with no interruption to BDO's ability to deal with work in Brazil. The strategy of the new BDO Brazil – which with this move becomes the fifth largest accounting firm in the country - is directly aligned to that of our international network and I have no doubt that their skills and expertise will be welcomed both in the Latin American region and in BDO as a whole. BDO remains fully committed to Brazil and will be investing in the development of the new BDO Brazil to ensure the firm is able to provide the distinctive service that BDO is recognised for on an international basis.”