KPMG to merge dozens of partnerships in overhaul of global structure

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KPMG presidents demand dozens of integration between national partnerships that make up the International Accounting Company in a move that hopes to enhance growth and prevent scandals, according to persons familiar with the matter.
The efforts made to integrate business more closely, which the partners in each country owns separately, reaches one of the largest comprehensive repair operations of the large four network industry.
KPMG It aims to reduce the number of “economic units” that make up the international network to at least 32 years by next year, from more than 100 years ago, according to the executive officials in the presentations that were presented to analysts last month and which were described in financial times.
The goal is an acceleration of the “assembly” strategy that the company has been following since 2023, which has already led to a mixture of many member companies in the Middle East, and a similar initiative in Africa.
In another unification, the KPMG partnership voted in the United Kingdom last year on to merge With KPMG works in Switzerland.
Unlike multinational companies, the four major accounting companies consist of a network of locally owned partnerships, reflecting local audit regulations and protecting partners in one country of responsibility for scandals elsewhere.
But the model has become increasingly tense as consultations, which require a great investment in technology, becomes more important than work.
According to people familiar with this issue, the company is concerned that the smaller countries may fight to keep pace with these investments while financing the necessary compliance procedures to protect the quality of audit and prevent reputation scandals.
KPMG has achieved global revenues of $ 38.4 billion in its last financial year. In 5.4 per cent, currency fluctuations were stripped, this was The fastest growth Among the four adults, but they represent a slowdown in the previous year.
Expectations of the industry were ambiguous in 2025 due to the economic and geopolitical uncertainty that affects customers.
Bill Thomas, CEO of KPMG International, gave a An extension for one year To his leadership period to know through the investment and integration strategy that will continue until September 2026.
One of the people who may be very young of CEOs said a $ 300 million revenue threshold, which may be a very small member company to remain a full member of the long -term KPMG network.
The person said that KPMG also insists that in any integrations, profit gatherings are partly shared for partners in the countries concerned, with the aim of moving to sharing full profits over time.
Previous integration attempts within KPMG have proven preserved. In 2007, the company’s business in the United Kingdom, German, Swiss and Liechtenstein merged to form KPMG EUROPE, but this step was reversed after its failure to provide intended efficiency.
The other four major companies have faced similar challenges in adapting their structure to meet the need for technological investment and the most efficient service for international customers.
A plan by EY to integrate national consultations and float it into the stock market collapsed in 2023 amid internal fighting.
Deloitte succeeded in collecting groups of member companies, including in northwestern Europe in 2016 and Asia Pacific in 2018.
KPMG said it will retain legal entities at the country level to comply with local auditing regulations, but reducing the number of economic units would facilitate the investments necessary for their growth strategy.
“The more you have the business units that you have, the easier it is to do commercial businesses worldwide,” said Gary Winjov, CEO of Operations at KPMG International.
“We want a better scale in our member companies. It deals with factors related to flexibility and quality [which] It protects the fabric of the institution, and the largest units can invest more in order to provide appropriate services to customers all over the world. ”
“It also provides our people with better professional horizons, as it is easier to move within the unit from among them.”
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2025-03-10 12:31:00