Reality bites for BDO Stoy Hayward

BDO Stoy Hayward is to part company with 10% of its partners as turbulent economic conditions caused the UK’s sixth largest firm to reconfigure the partnership.

The firm has ‘invited’ 24 partners to take retirement and is in the process of settling the details over the withdrawal of equity.

Simon Michaels, managing partner at BDO Stoy Hayward, would not say how much the total cost would be to the firm but said it was not an ‘unmanageable situation to deal with’. The partners will leave over the next few months and there are no plans for cutting further staff, Michaels said.

He said the cuts were being made to ensure the firm remained competitive. ‘If you boil it down, our challenge is to build market share. Our core market remains mid and larger corporates and we’ve got some ambitious plans. We are continuing to win a fair amount of work in [the] listed company space and a number of advisory assignments.’

He said the business ‘reality’ was that it had too many partners. The departures will be from across the firm’s service lines.

‘The focus continues to be putting our clients first, servicing mid and larger corporates and adapting to changing market conditions,’ said Michaels.

After high points for the firm including its appointment to advise the Saudi based Saad group on its restructuring plans, its £4.5m Northern Rock valuation deal and its handling of the Allied Carpets pre-packaged administration, the staff changes will be seen as a major surprise.

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Breaking news: One in ten BDO partners to leave