Global accounting network BDO International, whose members collectively generate over $15bn in annual revenue, has issued guidance to its member firms recommending that they refrain from accepting equity investments from private-equity or other non-traditional capital providers, according to a report by Bloomberg.
The advisory comes amid heightened interest from private-equity firms in acquiring stakes in professional services and audit businesses – an area historically viewed as sensitive due to independence, governance and conflict-of-interest considerations. Chief executive Pat Kramer said it would ensure that the organisation remains “in control of [its] destiny”.
Accountancy networks Grant Thornton and Baker Tilly have both recently seen some of their member firms take private equity investment.
