Favourable response to merger talks: Peats-KGM

Article Abstract:

Peat Marwick International and Klynveld Main Goerdeler have agreed on a formal framework to merge the two firms into the world's largest accounting organization, with a fee income of $2.7 billion, 58,000 staff members, and 813 offices in 88 nations. If the partners of both companies approve, the companies will merge as of January 1, 1987 to form Klynveld Peat Marwick Goerdeler (KPMG). The merger would cause Arthur Andersen to become the second largest public accounting firm, approximately $900 million behind the merger organization in annual fee income. Peat Marwick is strong in the North American, Caribbean, and British markets, while Klynveld's operations focus on the European continent. The corporate offices of the new organization would be in Amsterdam, and the national U.S. firm would become known as Peat Marwick Main & Co. Similar plans for a merger between Price Waterhouse and Deloitte Haskins and Sells failed consummation in 1985.

Financial services industry, Financial services, Peat, Marwick, Mitchell and Co., Klynveld Main Goerdeler

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Big firm mergers: the human dimension

Article Abstract:

The mergers of large accounting firms frequently lead to problems among individual staff which are all too often overlooked by management. Mergers cause stress and confusion which can manifest itself among both managers and employees as resistance to the merger. Before a merger, management must be cognizant of four negative reactions to mergers and how to cope with them in order to make the transition process a smooth one. In the case of loss of identity, senior managers should have meetings with managers and employees to ascertain what they valued in the old company in order to preserve it. To deal with a lack of involvement, senior managers should assure managers and employees that the merger will not be personally damaging to them. To counter a lack of direction, an in-depth explanation of the changes should be provided as early as possible. To ameliorate disaffection, the disaffected should have their complaints acknowledged publicly.

Management, Acquisitions and mergers

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Incorporate your firm's methodology in its own manual

Article Abstract:

An account is given of how the manual 'Finnies' Rational Audit Method', also known as FRAME (as well as its supporting documentation), was produced. The manual provided greater consistency of approach, given the firm's mergers, and was adapted to the needs of the firm's clients. In 1983, a new technical manager joined the staff and was placed in charge of completing the manual. The new manager decided that an audit philosophy had to be developed, prior to writing the manual. For this purpose, a model was developed of a typical client audit. This model audit approach was named FRAME. The model is flexible enough to cope with both large and small audits. The manual was redrafted and completed in the summer of 1984.

Usage, Auditing, Bibliography, Technical manuals, Handbooks, vade-mecums, etc., Handbooks

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