By Luke Hatkinson-Kent
It was big news in the finance arena when in 2016 when WH Ireland?s (WHI) Wealth Management Division partnered with SEI Wealth PlatformSM to establish a more efficient, robust and scalable platform to meet their clients? needs. But it was, by no means, the largest merger.
Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, is a UK-incorporated multinational professional services firm, and one of the ?Big four? accounting firms alongside PwC, EY and KPMG. Deloitte?s continued growth is reliant to its ability to build successful partnerships within the professional services arenas.
Last year, in the face of Brexit, Deloitte developed and forged new networks in Europe by merging nine of its member firms, thereby integrating and consolidating its professional services within the European market.
The move, said David Sproul, Deloitte?s UK chief executive who is the chief executive-elect of Deloitte North West Europe, ?was to address the issues our clients are facing are around globalisation, growth and digitalisation of business models. From a client needs point of view, Brexit hasn?t changed anything.?
The merge of professional services combines Deloitte?s Belgian, Danish, Dutch, Finnish, Icelandic, Norwegian and Swedish member firms with its UK and Swiss operations to create Deloitte North West Europe.
As part of the merger, Deloitte plans to invest ?200m in the combined business over the next three years and plans to make acquisitions around areas such as consulting and digital. Technology-related activity makes up a growing part of the big four and they are pouring money into areas like cyber security, data analytics and artificial intelligence ? expanding far beyond their roots in audit.
Talking of the merger, Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales says ?I think Deloitte?s new partnerships make a lot of sense. It?s a natural response from professional services firms to a global world. It?s a good vote for globalisation and internationalisation in a world where we have to justify the benefits of free trade because we can see protectionism creeping in.?
In the past, the integration of large accountancy networks has historically been avoided as networks have enjoyed the ability to distance themselves from a member firm if it runs into financial or reputational difficulties, in order to keep the global brand intact. But not today.
The deal, which may be seen as ?Brexit agnostic? has amplified the rationale international and global strategic corporate partnerships. Brexit won?t reduce the appetite of UK businesses to invest across Europe or Deloitte?s appetite to play on a global business.
