Big Four: KPMG set to merge UK and Swiss businesses to chase down rivals
One of the Big Four, KPMG UK has begun exploratory discussions with its partners over a plan to merge its business with KPMG Switzerland.
According to the Financial Times, the deal would replicate Deloitte’s UK, which merged with its Swiss member firm in 2006.
KPMG is currently the smallest member of the Big Four but the firm is the most European-focused firm. In the UK, its firm has a total workforce of almost 16,000, while in Switzerland, it has over 2,600 people.
KMPG UK revenues grew by 16 per cent during the financial year ending 30 September 2022 to £2.72bn. The average payout given to KPMG’s 786 UK partners during that financial year was £757,000.
Partners in the UK and Switzerland were informed of this plan last Friday. In order for the merger of the UK and Swiss businesses to go forward, it will have to be approved by equity partners across both countries. If the partnership is keen, it is anticipated that the firm will bring a proposal for an equity partner vote next year.
In a statement sent to Morning Wire, Jon Holt, chief executive and senior partner at KPMG UK, said: “We have started conversations with our Swiss firm to explore how working more closely together would bring greater benefits to our clients, people and partners.”
“When I came in as chief executive, I set out a plan to invest for the long term and build a resilient, sustainable business, this includes working even closer with our global network,” he added.
“Bringing together our two firms would give us more collective power to invest, build new services for our clients and provide our people with significant global career opportunities. Together, we would grow faster, be more profitable and do so in a sustainable way.”
This comes after news emerged in October that KPMG was planning a wave of job cuts and salary freezes in its UK deal advisory division, as around 110 employees were expected to be laid off.
The firm has also cut the number of its equity partners as for the first time the firm’s equity partnership has fallen below 500 members.