TBL April 2013.Indd
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The Bottom Line April 2013 FOCUS 11 Challenging times call for inventive solutions By GUNDI JEFFREY though Canadian business was n an almost copycat repeat of waiting to exhale.” the year before, fiscal 2012 Fortunately, adds Bill Thomas, Ifound Canada’s accounting CEO of KPMG LLP, “in Canada, firms grappling with an uncertain we’re seeing that global economic economy – mostly elsewhere, but volatility being offset somewhat affecting Canadian markets all the by the relative health of the coun- same – calls for audit reform and try’s conservatively managed and more intense competition in a regulated financial services sector congested audit market. and by the strong demand for Firms struggled to meet their Canada’s natural resources.” revenue targets as corporations Ernst & Young’s CEO Trent put off all but the essential special Henry agrees: “Canada is often projects, but all the same required the envy of developed markets the handholding while steering world over. Our own research and through a complicated and chal- surveys of the world’s leading lenging business environment. entrepreneurs and business execu- Not only are businesses being tives, including many Canadians, bombarded by new accounting show they expect to see more standards no matter what sector growth in 2013. In fact, in one of they operate in, they are facing our recent studies, Canada ranked more intense scrutiny from Can- third among countries with the adian tax authorities and other most positive view of their local regulators. economy compared to the global “The Eurozone crisis, the on- economy. And Canadian execu- again, off-again fiscal cliff issue tives were more focused on in the U.S., as well as sluggish growth than their U.S. and global growth everywhere in the counterparts.” a specific service in a specific that “every organization in Canada finding alternative ways to deliver developed economies, all acted as This mix of caution and opti- area, we are now being asked to is also looking for ways to be our services by asking questions a drag on market demand,” mism gave the firms plenty of help provide answers to signifi- more efficient and reduce costs — around who, how and where we do observes Frank Vettese, CEO of opportunities to get inventive with cant problems or significant to do more with less — which work,” McFarland says. Deloitte LLP. “Although Canada service offerings and new ways of opportunities by offering highly means we’re continuing to see fee Although Grant Thornton LLP weathered the recession well and presenting them. integrated solutions. So, we have pressure in all parts of our busi- has not introduced any service emerged relatively healthy, there Vettese describes “a funda- been investing considerably in ness. areas in the past year, Phil Noble, was an atmosphere of intense cau- mental change in the way organiz- innovative services.” “So we’re looking at ways to CEO and executive partner, tion in the business environment. ations are seeking assistance. At the same time, PwC LLP deliver our services by leveraging For much of the year, it felt as Instead of being asked to perform CEO Bill McFarland points out our strong global network and See Mix on page 20 MNP has highest revenue bump Editor’s note: MNP LLP posted the aggressive with its merger strategy in ness and energy to the public sector con- largest revenue increase among Canada's 2012, bringing only three firms into the sulting market in Southern Ontario, and 10 biggest firms. Its 15 per cent increase family. “We continued to focus on across Canada. We will now equal any of is also the second highest among all firms. growing the Toronto and Montreal the traditional consulting firms in terms n a year of continuing merger activity offices,” says MNP CEO Daryl Ritchie, of depth and expertise.” in pursuit of capturing a larger “entering only one new location.” Closer to home, MNP snapped up Imarket share in Ontario, one of MNP persuaded North York-based Tyce Carle-Thiesson, a professional ser- MNP’s other highlights was having Sacks LLP, a firm specializing in the real vices firm in Nanaimo, B.C., with the Richard Wise, valuation and litigation estate industry, to join the firm, aiming goal of augmenting service offerings in support partner in the Montreal office, to enhance services for real estate clients the Vancouver Island area. receive the Queen Elizabeth II Diamond across the country. MNP also merged Ritchie is delighted his firm met its Jubilee Medal in recognition of his 35 with PSRG, a public sector consulting growth targets for 2012 — 15 per cent, years of leadership in the field of busi- firm in Toronto, which Ritchie believes “which was fuelled by organic growth ness valuation. will “instantly bring a powerful set of across all service lines and the recent MNP did choose to be a little less capabilities and a much needed fresh- merger activity.” Rank by Revenue Revenue Partners/ Professional Revenue per Number Revenue splitting Revenue 2012 change Principals Staff professional of offi ces A& A/MAS/ 2012 2011 Association/Year End/ Head Offi ce (‘000) (%) (+/-) (+/-) staff tax/other 11 Deloitte LLP 1 / June 2, 2012 / Toronto 1,881,000 +3.5 863 (+30) 5,461 (+243) 344,442 56 N/A 2 2 PricewaterhouseCoopers LLP / June 30, 2012 / Toronto 1,202,200 +1.9 531 (+111) 4,131 (+212) 291,019 25 N/A 3 3 KPMG LLP / September 30, 2012 / Toronto 1,162,734 +2.2 661 (+232) 3,555 (+96) 327,070 35 (+2) N/A 4 4 Ernst & Young LLP / June 29, 2012 / Toronto 911,000 +4.7 341 (+10) 2,826 (+97) 322,364 17 (+2) N/A 5 5 Grant Thornton Canada 2 / December 31, 2012 / Toronto 545,000 +5.8 409 (-7) 2,837 (+279) 192,104 135 (+17) N/A 6 6 BDO Canada LLP / December 31, 2012 / Toronto 446,000 +4.7 383 (+1) 2,787 (+627) 160,029 105 (-1) N/A 7 7 MNP LLP / December 31, 2012 / Calgary 430,000 +15.0 329 (+46) 918 (-6) 468,410 58 N/A 88Collins Barrow National Co-operative / Dec. 31, 2012 / Kitchener, Ont. 156,918 +9.8 183 (+6) 495 (+20) 317,006 37 65/7/23/5 9 9 Richter / December 31, 2012 / Montreal 80,000 -4.5 48 (-28) 337 (+119) 248,665 1 40/30/25/5 10 10 Mallette / August 31, 2012 / Quebec 56,600 +6.0 59 442 (+13) 128,054 22 65/10/15/10 1 Deloitte’s 2011 fi gures revised to: $1.817 billion revenue, 833 partners and 5,218 professional staff . 2 Includes Grant Thornton LLP and Raymond Chabot Grant Thornton (Quebec) 12 FOCUS The Bottom Line April 2013 Deloitte PwC Canada KPMG lthough Deloitte did not meet all of its growth targets, wC grew almost 2 per cent in 2012, “which was PMG had a great start to fiscal 2012, with revenue says CEO Frank Vettese, “our revenues remained slightly below our expectations,” says CEO Bill and profit well ahead of the year before. But then the Afairly stable, which allowed us to maintain our leading PMcFarland, “as we had expected a rebound in deal KEuropean debt crisis cooled the economy along with market share in Canada.” activity that did not occur.” On the plus side, PwC experi- firm growth. Despite the difficult year, says CEO Bill Vettese was pleased that the firm won several awards rec- enced close to double-digit growth in Alberta. “This is now Thomas, “our audit practice remains number one in Canada, ognizing it as a great place to work, a best place for new Can- a key area of focus for us, given the shift of wealth to with 25 per cent market share.” adians and a best diversity employer, as well as winning the western Canada.” The firm’s 2011 investments in health care and the public Canadian General Counsel Association’s social responsibility McFarland was also proud to note that “growth in market sector consulting paid off, showing the biggest growth for the award. share, and being named one of Canada’s top 100 employers, year. The natural resources practice also saw good increases. In the spirit of team-building, the firm sent 23 of its people one of the top diversity employers and one of Canada’s Thomas says the newly formed Accounting Advisory Ser- to Brazil as part of the Deloitte Habitat Adventure, “to work greenest employers continues to help us attract and retain vices team “is already generating revenue in the majority of with Brazilian colleagues to repair homes for local families.” top talent.” our national accounts.” AAS sits at the crossroads of audit, Vettese is especially proud of “The Future of Productivity But he derives his greatest satisfaction from the tax, advisory and the professional practices, “which positions – Clear choices for a competitive Canada,” a report examining “stronger engagement from all of our people in what we are us to bring the right expertise to help our clients with tech- Canada’s productivity problem and the role leaders need to trying to do here at PwC, on how we can improve, having a nical and complex accounting matters.” play in reversing this alarming trend. “Deloitte’s 15 recom- little bit of fun but still being a high-performance place to Meanwhile, KPMG Enterprise rolled out a suite of enter- mendations for improving productivity are really helping to work. And, I am really energized when I hear stories about prise advisory services. drive the national agenda in this area,” he said. how our people are adding value to a client’s business.” Expansion was on the firm’s mind, as it acquired Velani Deloitte is now taking what Vettese calls a “life-cycle PwC introduced an innovation leader “because it is Consulting, immigration law firm Greenberg Turner, SECOR approach” to providing services.