New deal will cement position of company
The merger of BDO McCabe Lo (BDO) and Shu Lun Pan Horwath Hong Kong (SLP Horwath), effective in seven days' time, will strengthen BDO International's position as the fifth-largest accounting network worldwide. It also heralds a greater focus by the international network on the business possibilities in the mainland.
SLP Horwath has been operating in Hong Kong since 1981. Its nine partners and more than 200 staff will join BDO in Hong Kong and the two senior partners, Clement Chan Kam-wing and Hong Ng, will join the merged firm's executive board. The merged firm, to be called BDO, will have a fee volume of more than HK$300 million and a workforce of 700 accounting professionals in Hong Kong.
Following the merger, BDO-affiliated firms will have more than 5,000 accounting professionals in greater China, and a turnover in excess of HK$1.2 billion with offices in Beijing, Guangzhou, Hong Kong, Shanghai, Shenzhen and Wuhan. 'Our merger with BDO is in alignment with our Chinese partners at Shu Lun Pan Shanghai who joined the BDO network earlier this year,' said Mr Chan, managing director of SLP Horwath. The recent admission of Shu Lun Pan Shanghai, China's largest domestic accounting firm, to the BDO network pre-empted the announcement of the merger with the Hong Kong office.
'We believe the merger will significantly enhance our service capabilities and open up opportunities in Greater China. The growing size of the firm also creates opportunities to develop industry focused and specialised services, enhancing our position as the preferred choice for potential clients,' Mr Chan said.
BDO will provide a full range of professional services, some of which are not available under SLP Horwath in Hong Kong. These include China tax services, business services and corporate secretarial services. The services provided in specialist advisory services area will be strengthened and expanded in the combined firm to include areas such as litigation support, forensic investigation and valuation.
Audit and assurance and risk advisory services are two potential areas for growth in China, Mr Chan said. The increasing sophistication of the mainland market meant that these services were earmarked for high growth, along with business services, consulting, tax advisory and tax planning.