Professional services firm BDO USA had a great 2013 in terms of netting clients for U.S. Securities and Exchange Commission audits, as it picked up far more than it lost.
During the year, the company brought on 65 clients looking for this particular type of service, and managed to lose eight companies that were looking for these reviews of financial statements.
The professional services firm managed to bring on 30 new customers for this service through normal business development, and as a result of robust participation in mergers and acquisitions, the company landed almost 40 new clients for SEC audits.
The success that BDO USA had in landing and retaining these customers in 2013 was far better than the results in attained in 2012, when it netted only 13 new clients for SEC audit services.
BDO USA notes key importance of staff
The firm has noted that amid the strong results it has enjoyed in terms of bringing on new clients for this particular practice, it has been deliberately scrutinizing both its people and the knowledge they have.
BDO USA stated that when it acquires other firms, it makes an effort to get a sense of the expertise held by its new employees. Once it has evaluated the skills of these individuals, it makes an effort to get a sense of which individuals might provide a substantial benefit to the national staff.
In addition, the professional services firm moves its employees around between clients and engagement teams, in order to help broaden their experience. This might be one reason why BDO USA has been netting so many clients for its SEC audit practice. Wendy Hambleton, national director of this practice, told Accounting Today that the recent progress that this business unit has had could help it land more clients.
"Success breeds success," Hambleton told the news source. "You get a big win and people hear about that, or a company goes public and people hear about that, or you work with lawyers or underwriters, and the next time they say, 'Oh, BDO does this well, let's call them.'"
Potential tailwinds from IPO market
In addition, the company's SEC audit practice could potentially enjoy substantial benefit in the event that the IPO market is robust in 2014, an outcome that seems likely based on recent survey data.
Data provided by BDO USA on Feb. 19 indicated that of the chief financial officers of technology firms that took part in a recent poll, 93 percent predicted that this year, IPO activity will either do better - or perform equally as well - as it did in 2013.
High technology is one of the particular practice areas where BDO's West Coast office has taken time to build itself up, so the firm may be well-positioned to bring on new clients in the event that this particular sector does indeed enjoy robust IPO activity.
Audit Analytics tracks key data from tax footnote disclosures, financial restatements, audit fees and auditor changes with the ability to create daily alerts for new disclosures by industry, auditor, and both auditor and company location. In addition to these and many other databases, we also offer qualitative red flag alerts for due diligence and risk assessment. Please contact Audit Analytics for an online demonstration or to learn more about these data sets. You can call us at (508) 476-7007 or e-mail firstname.lastname@example.org.