PracticeAccounting FirmsComment: Deloitte – Andersen’s dark horse

Comment: Deloitte - Andersen's dark horse

Deloitte & Touche has emerged as the dark horse in the race to pick up the most attractive practices within the disintegrating Andersen empire.

Deloitte watched from the sidelines as KPMG announced it would seek to merge with Enron’s former auditor and then stood quietly by as first Ernst & Young and then PricewaterhouseCoopers picked up practices. First PwC announced it had picked up the choice Hong Kong and China practices of Andersen and then Ernst & Young confirmed it was merging with Andersen in Russia and Australia.

E&Y continued acquiring: New Zealand was next with Singapore swiftly joining its burgeoning empire.

Deloitte entered the fray last Monday, picking up the Spanish practice of Andersen. This was a crucial stumbling block to the KPMG deal. Not only was this the withdrawal of the first European practice from the KPMG tie-up, Spain was a market where Andersen was the number one firm and a crucial gateway to South America.

Deloitte proved how true that was yesterday by confirming that it would merge Mexico: others in the region are expected to follow.

The Big Five map is now being redrawn worldwide. In the UK the Deloitte-Andersen tie-up moves Deloitte up to number two in the league table. It’s a bitter irony: had KPMG pulled off the Andersen deal it would have been breathing down the neck of PwC. Now istead of jostling for the number one slot, it sees itself slip to number three.

But a question remains. Andersen in the UK has been named in the US indictment. Should there be action against the firm as a result, has Deloitte sifficiently ring-fenced the potential liability?

Related Articles

Productive accountancy firms lead the way

Accounting Firms Productive accountancy firms lead the way

1d Simon Adcock, HSBC
LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

Accounting Firms LLPs in Top 50+50: Will LLPs continue to be the preferred set-up?

2d Fergus Payne, Lewis Silkin
BDO’s global revenues pass $8bn

Accounting Firms BDO’s global revenues pass $8bn

1w Alia Shoaib, Reporter
Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

Accounting Firms Top 40 International Networks, Associations and Alliances: Finding growth amid uncertainty

2w Philip Smith, Reporter
Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

Accounting Firms Top 40 International Networks, Associations and Alliances 2017: Big Four tussle for top spot

2w Emma Smith, Managing Editor
BDO reports revenue growth of 5.7%

Accounting Firms BDO reports revenue growth of 5.7%

2w Alia Shoaib, Reporter
Taylorcocks announces merger with Surrey firm

Accounting Firms Taylorcocks announces merger with Surrey firm

2w Emma Smith, Managing Editor
Kingston Smith reports 7% gender pay gap

Accounting Firms Kingston Smith reports 7% gender pay gap

3w Emma Smith, Managing Editor