Grant Thornton & Robson Rhodes merger

Is this a real challenge to the dominance of the Big 4 in the UK?

Despite the fact that E&Y's UK revenues are £650 million more than the projected revenues from this soon-to-be-merged firm, it will create an interesting dynamic.

After all, the partners will be in a position to put bid for projects previously our of their range by being able to place more staff on bigger projects. And yet, by being smaller than the Big 4, they may be able to adapt to and respond to market changes more quickly too. And if their overheads are smaller than the Big 4, they may be able to offer big corporations and public sector clients the services a Big 4 firm can offer, but without the associated costs.

This is a firm that, because of its size, will own an interesting middle ground between the Big 4 and the second tier firms. Maybe it will be a new Big 4-and-a-half?

As long as it's not called GrantthorntonRobsonrhodes.

the Heresiarch
+++