BDO International could be a "credible challenger" to the Big 4 accounting firms, according to its new head.
Jeremy Newman, newly appointed chief executive of the company, told the Financial Times that he sees a large opportunity in the market but that becoming a fifth tier to the dominating Big 4 "would be a sign of failure".
"Being a credible alternative doesn't mean being the same. There's no doubt the Big 4 are essentially global corporations driven out of head offices. We're more adapted to the local market," he said.
The newspaper reports that regulators have expressed worry that if one of the Big 4 - PricewaterhouseCoopers, KPMG, Ernst & Young or Deloitte - pulled out of the audit markets the capital markets would be in disorder. A fifth alternative would therefore be welcomed.
According to Legalweek.com, BDO recently took over from Deloitte as primary advisor to the Law Society until 2009 and has over 600 offices in 100 countries.
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