Recent figures released by the Financial Reporting Council, show that the number of accountancy firms has fallen from 6,962 to 6,622, a result of the increase in firm mergers.
As the UK economy recovers, firms are looking to profit from the benefits associated with merging, including the reduction in administrative costs which could see increased competition with larger rivals. 2014 has seen a rising number of accountancy firms choosing this avenue, indicating an increase in confidence within the profession.
Merging could encourage companies to increase their capacity and builder a broader skill-set needed to support the growth of their client base. A firm with different geographical locations, sectors and service offerings can also be attractive to those looking to merge.
Peter Alderson, LDF Managing Director comments that mergers can often provide the opportunity to invest in areas such as marketing and IT systems, allowing accountancy firms to begin their next stage of growth.
Firms are also looking to diversify their range of services away from current auditing and tax planning work, as the government sets to introduce higher thresholds for businesses requiring audit in 2016.
Many firms are choosing alternative methods of finance in order to cover significant up-front costs associated with merging.
LDF offer a variety of finance solutions to cover expenditures that can often arise from two businesses merging together, this includes office refurbishments, IT and Software, as well as Tax liabilities and other development costs.
To find out more about how LDF can assist your business:
T: 01244 527300 | webenquiry@ldf.co.uk
