KPMG is one of the largest professional services firms in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young (EY) and PwC. Its global headquarters is located in Amstelveen, Netherlands.
KPMG employs 138,000 people and has three lines of services: audit, tax, and advisory.
Businesses all over the world count on KPMG for accounting. KPMG is the smallest, yet one of the most geographically dispersed of accounting's Big Four firms, which also include Deloitte Touche Tohmatsu, Ernst & Young, and PricewaterhouseCoopers. KPMG, a cooperative that operates as an umbrella organization for its global network of member firms, has organized its structure into three operating regions: the Americas (which includes KPMG L.L.P.); Australia and Asia/Pacific; and Europe, the Middle East, South Asia, and Africa. Member firms' offerings include audit, tax, and advisory services. KPMG focuses on clients in such industries as financial services, consumer products, and government.
KPMG International is the third-largest accounting firm in the world. Headquartered in the Netherlands, KPMG provides accounting, consulting, tax and legal, financial advisory, and assurance services from more than 820 locations. KPMG's member firms are located in more than 159 countries across the globe. In the late 1990s, the company focused on unifying its historically loose federation of member firms to build a cohesive global image and offer a consistent array of products and services.
The firm was established in 1870 when William Barclay Peat formed an accounting firm in London. In 1877 accountancy firm Thomson McLintock opened an office in Glasgow and in 1911 William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form Peat Marwick Mitchell & Co, later known as Peat Marwick.
Meanwhile in 1917 Piet Klijnveld opened his accounting-firm in Amsterdam. Later he merged with Kraayenhof to form Klynveld Kraayenhof & Co.
In 1979 Klynveld Kraayenhof & Co. (Netherlands), Thomson McLintock (United States) and Deutsche Treuhandgesellschaft (Germany) formed KMG (Klynveld Main Goerdeler) as a grouping of independent national practices to create a strong European-based international firm. Then in 1987 KMG and Peat Marwick joined forces in the first mega-merger of large accounting firms and formed a firm called KPMG in the US, and most of the rest of the world, and Peat Marwick McLintock in the UK.
In 1990 the two firms settled on the common name of KPMG Peat Marwick McLintock but in 1991 the firm was renamed KPMG Peat Marwick and in 1999 the name was reduced again to KPMG.
In 1997 KPMG and Ernst & Young announced that they were to merge, in a manoeuvre largely seen as a spoiling tactic over the merger of Price Waterhouse and Coopers & Lybrand. However that merger, to form PricewaterhouseCoopers, was granted regulatory approval while the KPMG/Ernst & Young tie-up was later abandoned.
In the late 1990s the firm took additional action to strengthen and unify its core businesses of audit, tax, and consulting services. In August 1998 the U.S. arm announced plans to sell its compensation consulting practice to human resources consulting firm William M. Mercer, Inc. The decision marked KPMG's move away from non-core operations. In March 1999 KPMG restructured its operations to create global operating regions. The newly formed KPMG 'Americas' group included 19 member firms in Mexico, Latin America, the Caribbean, Australia, and New Zealand. These partners combined operations with the U.S. firm of KPMG LLP. The 'EMA' group covered Europe, the Middle East, and Africa and included member firms in such countries as France, the Netherlands, Germany, and the United Kingdom. The firm planned to form an Asia-Pacific group at a later date. In September 1999 Stephen Butler became the chairman of KPMG International, succeeding Colin Sharman, who had been the firm's chairman since 1997. Butler's new position was in addition to his continuing roles as chairman and CEO of KPMG LLP.
Despite KPMG's continued growth, the firm suffered a few setbacks in its expansion efforts. In late 1997 KPMG's Canadian arm announced plans to merge with accounting firm Ernst & Young. The deal, which fell through in early 1998, would have created the largest accounting and consulting firm in the world. The firms hoped their combined strength would help make inroads in the emerging markets of Latin America and China and enhance global opportunities. In 1999 KPMG Canada faced another failed merger attempt. On March 25 the firm declared its plans to separate from KPMG International and merge with Arthur Andersen, but the deal was called off just over a week later, on April 5. The soured deal left KPMG divided into opposing groups. Also that year KPMG's consulting practice in Belgium was acquired by rival PricewaterhouseCoopers.
The setbacks did little to slow the firm down, however, and KPMG made some acquisitions itself. In May 1999 the firm expanded its consulting business by acquiring Softline Consulting & Integrators, Inc., a firm based in San Jose, California. KPMG also added new partners, many of whom had defected from PricewaterhouseCoopers, in Taiwan, Israel, Indonesia, and the Philippines. In the United States, KPMG separated its consulting business from its accounting operations and planned to sell stock in the entity, if approved by the U.S. Securities and Exchange Commission. In August 1999 Cisco Systems Inc. agreed to purchase a 20 percent stake in the consulting business for about $1 billion. KPMG intended to use the funds to further invest in its expanding Internet services. The partnership provided Cisco with access to KPMG's international corporate clients, while KPMG gained access to Cisco's equipment and expertise in computer networking. David Crawford, chairman of KPMG Australia, commented on the deal in The Age, noting, 'This is a very significant development. ... It puts us at the forefront of e-commerce development and the exploitation of the Internet.' In January 2000 KPMG Consulting, LLC was incorporated. The new business included KPMG's consulting operations in the United States and Mexico. KPMG expected to add additional firms, including those in Asia, Canada, and Latin America, during the course of the year.
As KPMG entered a new century, the company appeared headed for continued growth and success. The firm had expanded significantly in the late 1990s while also integrating operations into a more centrally run entity. KPMG reported record revenues of $12.2 billion for the year ended September 30, 1999, up 17 percent over fiscal 1998 revenues. All business areas enjoyed substantial growth during 1999: the consulting services division grew 32 percent to reach $3.5 billion, financial advisory services grew 39 percent, tax services increased 16.5 percent, and assurance services rose nine percent. The firm's geographic regions experienced growth as well, with the Americas group surging 19 percent, Asia Pacific growing 20 percent, and the EMA region expanding 15 percent. Chairman Stephen Butler looked forward to the continued globalization of KPMG and indicated that the firm would take advantage of opportunities for growth, particularly regarding the Internet. 'I'm enthused about KPMG's future prospects,' Butler stated in a prepared statement. He remarked: 'We'll continue moving KPMG toward a vision that emphasizes a cohesive and capable firm that effectively serves multinational clients anywhere they operate.'
Principal Subsidiaries: KPMG LLP (U.S.); KPMG Consulting, LLC (U.S.; 80.1 percent).
Principal Competitors: Andersen Worldwide; Ernst & Young International; PricewaterhouseCoopers.
Financial Highlights
Fiscal Year End: September
Revenue (2009): 20110.00 M
Revenue Growth (1 yr): (-11.40%)
Employees (2009): 140,235
Employee Growth (1 yr): 2.40%
Statistics:
Private Company
Incorporated: 1897 as Marwick, Mitchell & Company
Employees: 102,000
Sales: $12.2 billion (1999)
NAIC: 541211 Offices of Certified Public Accountants; 541219 Other Accounting Services; 541618 Other Management Consulting Services
Key Dates:
1897: James Marwick and Roger Mitchell found Marwick, Mitchell & Company in New York City.
1925: Company creates alliance with British accounting firm W.B. Peat & Co. and forms Peat, Marwick, Mitchell & Company.
1978: Company changes name to Peat Marwick International.
1987: Peat Marwick International merges with Klynveld, Main, Goerdeler to form Klynveld Peat Marwick Goerdeler, based in the Netherlands; the U.S. arm is named Peat, Marwick, Main & Company.
1989: U.S. branch is renamed KPMG Peat Marwick.
1999: KPMG Peat Marwick shortens its name to KPMG LLP, a branch of KPMG International.
Key People
• Chairman: Timothy P. (Tim) Flynn
• Global COO: Brian M. Ambrose
• Global Chair, Communications and Media: Sean Collins
Address:
Burgemeester Rijnderslaan 20
1185 MC Amstelveen
The Netherlands
KPMG employs 138,000 people and has three lines of services: audit, tax, and advisory.
Businesses all over the world count on KPMG for accounting. KPMG is the smallest, yet one of the most geographically dispersed of accounting's Big Four firms, which also include Deloitte Touche Tohmatsu, Ernst & Young, and PricewaterhouseCoopers. KPMG, a cooperative that operates as an umbrella organization for its global network of member firms, has organized its structure into three operating regions: the Americas (which includes KPMG L.L.P.); Australia and Asia/Pacific; and Europe, the Middle East, South Asia, and Africa. Member firms' offerings include audit, tax, and advisory services. KPMG focuses on clients in such industries as financial services, consumer products, and government.
KPMG International is the third-largest accounting firm in the world. Headquartered in the Netherlands, KPMG provides accounting, consulting, tax and legal, financial advisory, and assurance services from more than 820 locations. KPMG's member firms are located in more than 159 countries across the globe. In the late 1990s, the company focused on unifying its historically loose federation of member firms to build a cohesive global image and offer a consistent array of products and services.
The firm was established in 1870 when William Barclay Peat formed an accounting firm in London. In 1877 accountancy firm Thomson McLintock opened an office in Glasgow and in 1911 William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form Peat Marwick Mitchell & Co, later known as Peat Marwick.
Meanwhile in 1917 Piet Klijnveld opened his accounting-firm in Amsterdam. Later he merged with Kraayenhof to form Klynveld Kraayenhof & Co.
In 1979 Klynveld Kraayenhof & Co. (Netherlands), Thomson McLintock (United States) and Deutsche Treuhandgesellschaft (Germany) formed KMG (Klynveld Main Goerdeler) as a grouping of independent national practices to create a strong European-based international firm. Then in 1987 KMG and Peat Marwick joined forces in the first mega-merger of large accounting firms and formed a firm called KPMG in the US, and most of the rest of the world, and Peat Marwick McLintock in the UK.
In 1990 the two firms settled on the common name of KPMG Peat Marwick McLintock but in 1991 the firm was renamed KPMG Peat Marwick and in 1999 the name was reduced again to KPMG.
In 1997 KPMG and Ernst & Young announced that they were to merge, in a manoeuvre largely seen as a spoiling tactic over the merger of Price Waterhouse and Coopers & Lybrand. However that merger, to form PricewaterhouseCoopers, was granted regulatory approval while the KPMG/Ernst & Young tie-up was later abandoned.
In the late 1990s the firm took additional action to strengthen and unify its core businesses of audit, tax, and consulting services. In August 1998 the U.S. arm announced plans to sell its compensation consulting practice to human resources consulting firm William M. Mercer, Inc. The decision marked KPMG's move away from non-core operations. In March 1999 KPMG restructured its operations to create global operating regions. The newly formed KPMG 'Americas' group included 19 member firms in Mexico, Latin America, the Caribbean, Australia, and New Zealand. These partners combined operations with the U.S. firm of KPMG LLP. The 'EMA' group covered Europe, the Middle East, and Africa and included member firms in such countries as France, the Netherlands, Germany, and the United Kingdom. The firm planned to form an Asia-Pacific group at a later date. In September 1999 Stephen Butler became the chairman of KPMG International, succeeding Colin Sharman, who had been the firm's chairman since 1997. Butler's new position was in addition to his continuing roles as chairman and CEO of KPMG LLP.
Despite KPMG's continued growth, the firm suffered a few setbacks in its expansion efforts. In late 1997 KPMG's Canadian arm announced plans to merge with accounting firm Ernst & Young. The deal, which fell through in early 1998, would have created the largest accounting and consulting firm in the world. The firms hoped their combined strength would help make inroads in the emerging markets of Latin America and China and enhance global opportunities. In 1999 KPMG Canada faced another failed merger attempt. On March 25 the firm declared its plans to separate from KPMG International and merge with Arthur Andersen, but the deal was called off just over a week later, on April 5. The soured deal left KPMG divided into opposing groups. Also that year KPMG's consulting practice in Belgium was acquired by rival PricewaterhouseCoopers.
The setbacks did little to slow the firm down, however, and KPMG made some acquisitions itself. In May 1999 the firm expanded its consulting business by acquiring Softline Consulting & Integrators, Inc., a firm based in San Jose, California. KPMG also added new partners, many of whom had defected from PricewaterhouseCoopers, in Taiwan, Israel, Indonesia, and the Philippines. In the United States, KPMG separated its consulting business from its accounting operations and planned to sell stock in the entity, if approved by the U.S. Securities and Exchange Commission. In August 1999 Cisco Systems Inc. agreed to purchase a 20 percent stake in the consulting business for about $1 billion. KPMG intended to use the funds to further invest in its expanding Internet services. The partnership provided Cisco with access to KPMG's international corporate clients, while KPMG gained access to Cisco's equipment and expertise in computer networking. David Crawford, chairman of KPMG Australia, commented on the deal in The Age, noting, 'This is a very significant development. ... It puts us at the forefront of e-commerce development and the exploitation of the Internet.' In January 2000 KPMG Consulting, LLC was incorporated. The new business included KPMG's consulting operations in the United States and Mexico. KPMG expected to add additional firms, including those in Asia, Canada, and Latin America, during the course of the year.
As KPMG entered a new century, the company appeared headed for continued growth and success. The firm had expanded significantly in the late 1990s while also integrating operations into a more centrally run entity. KPMG reported record revenues of $12.2 billion for the year ended September 30, 1999, up 17 percent over fiscal 1998 revenues. All business areas enjoyed substantial growth during 1999: the consulting services division grew 32 percent to reach $3.5 billion, financial advisory services grew 39 percent, tax services increased 16.5 percent, and assurance services rose nine percent. The firm's geographic regions experienced growth as well, with the Americas group surging 19 percent, Asia Pacific growing 20 percent, and the EMA region expanding 15 percent. Chairman Stephen Butler looked forward to the continued globalization of KPMG and indicated that the firm would take advantage of opportunities for growth, particularly regarding the Internet. 'I'm enthused about KPMG's future prospects,' Butler stated in a prepared statement. He remarked: 'We'll continue moving KPMG toward a vision that emphasizes a cohesive and capable firm that effectively serves multinational clients anywhere they operate.'
Principal Subsidiaries: KPMG LLP (U.S.); KPMG Consulting, LLC (U.S.; 80.1 percent).
Principal Competitors: Andersen Worldwide; Ernst & Young International; PricewaterhouseCoopers.
Financial Highlights
Fiscal Year End: September
Revenue (2009): 20110.00 M
Revenue Growth (1 yr): (-11.40%)
Employees (2009): 140,235
Employee Growth (1 yr): 2.40%
Statistics:
Private Company
Incorporated: 1897 as Marwick, Mitchell & Company
Employees: 102,000
Sales: $12.2 billion (1999)
NAIC: 541211 Offices of Certified Public Accountants; 541219 Other Accounting Services; 541618 Other Management Consulting Services
Key Dates:
1897: James Marwick and Roger Mitchell found Marwick, Mitchell & Company in New York City.
1925: Company creates alliance with British accounting firm W.B. Peat & Co. and forms Peat, Marwick, Mitchell & Company.
1978: Company changes name to Peat Marwick International.
1987: Peat Marwick International merges with Klynveld, Main, Goerdeler to form Klynveld Peat Marwick Goerdeler, based in the Netherlands; the U.S. arm is named Peat, Marwick, Main & Company.
1989: U.S. branch is renamed KPMG Peat Marwick.
1999: KPMG Peat Marwick shortens its name to KPMG LLP, a branch of KPMG International.
Key People
• Chairman: Timothy P. (Tim) Flynn
• Global COO: Brian M. Ambrose
• Global Chair, Communications and Media: Sean Collins
Address:
Burgemeester Rijnderslaan 20
1185 MC Amstelveen
The Netherlands