Nearly a quarter of firms would merge this year

by Rachael Singh

More from this author

20 Feb 2013

  • Comments

NEARLY A QUARTER of accountancy firms (24%) said a merger was likely or possible in the next 12 months, a recent study has shown.

The research by Bloomsbury Professional looked at the accountancy sector's growth plans for the next 12 months.

"These mergers aren't necessarily for aggressive expansion. Some firms are just looking to diversify away from a particular sector or business line to achieve economies of scale by reducing support staff and property costs," said Martin Casimir managing director of Bloomsbury Professional.

Just 8% of firms were considering poaching rival and 15% are considering opening new offices. However, just 11% want to move into a new sector.

Although the majority of firms are not considering expansive plans for the coming year, many are focusing internally to raise their profitability.

More than half (58%) would initiate tighter credit controls, 61% are planning to cut unprofitable services and 73% are to focus on raising hourly fees.

However, on the plus side 86% said they were unlikely to make redundancies in the next 12 months.

"Firms understand that it will be tough to increase profits in the current market by growing turnover organically or by acquiring teams or smaller rivals. The lack of activity on poaching senior teams will have a dampening effect on salaries," said Casimir.

"Firms do still need to find an edge though, and they are trying to find this by boosting margins. However, it may be easier said than done for firms to increase their hourly rates without running into opposition from clients." 

The survey includes the responses of more than 60 firms. 

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Appointments to University Committees

University of Glasgow 120x60University of Glasgow - Glasgow - unremunerated positions

 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.