Publication: The Bottom Line
Date: Mid-November 2009
By: Gundi Jeffrey
In what appears to be a sideways move, Collins Barrow - Canada's largest association of accounting firms and the country's eighth largest accounting organization -- has changed its international affiliation from Praxity International to Baker Tilly International. Both claimed to be the eighth largest accountancy and business advisory network in the world, although Baker Tilley's combined global 2009 fee income of U.S. $2.95 billion in revenue slightly lags Praxity's $3.2 billion. But Collins Barrow, with 145 member firms in 110 countries, has a wider reach than Praxity's 109 firms in 72 countries.
So why the switch? According to Collins Barrow chairman Lionel Goldman, "our domestic and international strategy has continued to evolve and we believe that Baker Tilly International's direction, global branding initiative and top 10 ranking is the best fit for our strategy."
The fact that recent Collins Barrow addition Smith Nixon - which joined the fold in July 2009 - was a former Baker Tilley member probably didn't hurt either. "We were very impressed with what we learned about Baker Tilly International from our friends at Smith Nixon," Goldman says.
For Baker Tilly International the advantage is clearer. Chairman and CEO Geoff Barnes says, "the fact that Collins Barrow had a truly national coverage was very attractive to us." The two "excellent" existing firms representing Baker Tilly International, Steingarten Schechter and Co. in Vancouver and Winnipeg and Wolrige Mahon LLP in Vancouver, could not offer that. And adding Collins Barrow's heft - it has 23 member firms and more than 40 offices across Canada - to the Baker Tilley organization may well help propel Baker Tilley ahead of Praxity in world firm rankings.
Goldman says Baker Tilley was the right choice for his organization for a number of reasons. The Canadian representatives would be able to play a larger role in the international governance structure than they were able to do with Praxity. Baker Tilley International also has a consistent, worldwide branding strategy that Goldman says better captures the fact that its members "represent a new alternative to the Big Six. Together, we are in a better position to serve international clients looking for a Big Six reach but with an entrepreneurial approach."
The new union is paying off, he says. "Some new opportunities have already presented themselves to us. In the past month alone, we have participated in several requests for proposals with our BTI colleagues."
Goldman also notes that Collins Barrow has secured the exclusive rights to the Collins Barrow name in Canada, which means that "we have the legal right to brand ourselves as Collins Barrow in the future, should we be so inclined.
"Our clients are diversifying, globalizing their operations and looking to deal with the challenges of new reporting standards," Goldman says. "With Baker Tilly International, we have the right global partner to hel