McLean Delmo mergers with Melbourne arm of Hall Chadwick
Fast growing Victorian accountancy firm McLean Delmo has merged with the long established Melbourne arm of Hall Chadwick in the latest shake-up in Melbourne financial services sector.
McLean Delmo managing partner John Delmo said, the merger would create a top tier, full-service firm at a time when many large firms were struggling to keep key personnel.
The now named McLean Delmo Hall Chadwick started life as a two person partnership in Melbourne in 1966.
The firm has grown dramatically since 1983 since Delmo became a partner, with the annual fees charged by the firm climbing from $365,000 in 1983 to more than $13m.
Delmo said most of the revenue growth in recent times had come from the establishment of relationships with the top end of town.
He said employee instability among the Top Tier firms in the past three months had created a level of dissatisfaction with some big clients who were now shopping around for accounting services.
Delmo said some firms were struggling because the cost of labour was becoming increasingly expensive.
The percentage of wages to turnover is increasing significantly. Simply put, the industry is not providing the same level of profitability as there was in previous years.
At McLean Delmo Hall Chadwick, that cost has risen from 30% to 38% in recent years.
With that sort of ratio it is hard for small firms to remain profitable and he expects many to disappear in the next five years.
Coupled with that, you have to realise that the average age of partners at accounting firms is now creeping up to 60 years of age.
So, the industry is going to be facing some massive changes in the coming years. Hall Chadwick national chairman David Kenney said the two firms decided to name the merged entity McLean Delmo Hall Chadwick due to the current relationships each firm had established in Melbourne and the brand equity of both firms.
McLean Delmo Hall Chadwick now employs 110 people across a wide spectrum of accounting services including management consulting, taxation, assurance, business evaluations, investment and financial planning, superannuation, estate planning, computer consultancy and franchising.
Delmo said the merger would extend that product offering extensively. They intended to strengthen its audit division and Hall Chadwick in Melbourne were strong in that area as well as in the insolvency sector.
So the merger with Hall Chadwick in Melbourne makes a lot of sense in that they can improve its service offering to its customers.
They intend to further strengthen its relationship with Hall Chadwick nationally as they continue to expand its operations.
Hall Chadwick national chairman David Kenney said the merger in Melbourne created a win-win situation.
The merger increases the level of services and expertise that both firms previously provided in Melbourne and gives McLean Delmo national exposure through the Hall Chadwick group of firms.
As competition continues to increase in the financial services sector, firms will have to become increasing nimble and broaden their product offerings to meet the needs and demands of their clients.
Hall Chadwick is excited to be now working with John Delmo and his team in Melbourne to ensure a great future for all concerned.
18-Jul-2007