'No job cuts' from BDO/Chiltern deal

Source: Kevin Reed, Accountancy Age

BDO's acquisition of Chiltern will see no job cuts, and will push on both firms' ambitous targets in the tax market.

'No job cuts' will follow Chiltern's acquisition by BDO Stoy Hayward, BDO's head of national tax, Paul Eagland, told Accountancy Age.

As BDO presented its deal of its latest acquisition Chiltern, which houses 75 partners plus support staff, Eagland said the combination was made to accelerate BDO's ambitious growth plans and enhance market position.

'Wider knowledge gives us a better platform to grow,' said Eagland.

Both firms had expected double-digit growth over the next financial year, which Eagland siad will be enhanced through the acquisition rather than just maintained.

'The impact on the market will be significant,' said Eagland.

He said partners of both firms had agreed to the deal 'unanimously'.

SG comment: It is quite surprising that BDO have made this sort of public announcement so soon into this deal. It is very good news for the new firm if this is maintained, and clearly shows the synergy involved with the deal. I think it also reflects how difficult it is for firms like BDO to recruit in the current tax market, and clearly they have now satisfied their need to hire new tax people through acquiring Chiltern, which had become a pure tax consultancy.