• BDO Annual Statement 2015

BDO Annual Statement 2015

12 July 2016

LETTER FROM THE CHAIR OF THE GLOBAL BOARD

In the last twelve months we have seen an unpredictable global economy, ongoing geopolitical upheavals, an increasingly competitive marketplace and, of course, the ever-present threat of terrorism. BDO Member Firms, like all businesses, operate in a very challenging working environment.

That makes it all the more pleasing to once again report double digit growth for the BDO network in 2015. Our total combined fee income for the year ending 30 September was US$7.30 billion, representing a year on year growth of 12.95%, at constant exchange rates.

This continuing success stems from our effective expansion strategy. Across every region our mergers, combined with an ongoing organic growth, have brought us tangible growth in revenues: Americas +22%, Asia Pacific +10% and EMEA +3%. The outstanding growth in the Americas is a particular example of that strategy. In the US, our largest firm posted a 29% rise in fiscal revenues in 2015. In other words, BDO has once again led our quickly transforming profession.

Market consolidation in our business is on the rise. Indeed, BDO is actively pursuing a strategy that will drive further mid-market consolidation. 2015 saw mergers with high-performing firms that share our values and our view of the future. For example, the appointment of firms previously with Baker Tilly strengthened the already existing BDO presence in both Greece and Kazakhstan. BDO Canada achieved two mergers with PKF. BDO Austria added €8 million to their revenues when they took on professionals from Grant Thornton. And, in Italy, BDO joined forces with Mazars.

New firms joining the BDO network last year increased our global presence to 154 territories. In EMEA, we welcomed Francophone West Africa – consisting of the Ivory Coast, Niger and Togo – as well as a new firm in the West Bank. In the Americas we appointed new firms in Honduras and Nicaragua. In Asia Pacific, we added New Caledonia to the Pacific island group of BDO French Polynesia. These factors and figures bring new people and expertise to the BDO network. But of course, we have more work to do.

Like all ‘mid-tier’ networks we must take strategic decisions to continue attracting global clients, enter new markets, improve performance, manage risk, invest in technology and attract the very best talent. Consolidation of the mid-tier of our profession is inevitable. We have planned for that. Our investment in global infrastructure, technology and talent has set us apart from the competition. That will help us deliver the exceptional client service for which we are known. We are determined that every firm in our growing network will both deliver on this service promise and remain the most competitive in our market...

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