A new player emerges on the global scene

International Accounting Bulletin, 12 Decembre 2006

Mazars and Moores Rowland International (MRI) have announced plans to launch a new alliance of independent firms called Praxity. Turnover for the association is expected to top $2,5 billion.
In this year’s world survey, MRI reported global revenue of $2,1 billion. The association is ranked tenth largest in the world and achieved a growth rate of 8 percent.
MRI member firms have approved a resolution that will dissolve the association before 31 March 2007, allowing them to apply to the new alliance. MRI and Mazars said that their applications “will be considered on the basis of agreed upon criteria of excellence”.
As IAB went to press, the partners of Mazars were preparing to meet to vote for Praxity under the organisation’s international rules. The integrated Mazars partnership will be admitted to the new organisation as one member with a presence in 38 countries.
William Fingland, managing partner of MRI US member BKD, and Jos van Huut, who is part of the Mazars executive board, will be Praxity’s respective chair and vice-chair.
Commenting on the decision to create Praxity, Patrick de Cambourg, Mazars president, said:”The idea is to create an alliance of top-quality independent firms and on the principle (where there is) no exclusivity in terms of territory so the best firms (in both organisation will) regroup then operate under the Praxity umbrella”.
Van Huut noted that the alliance will bring more opportunities to its member firms. “The unique concept of the Praxity alliance offers significant and exciting additional opportunities to Mazars and the other quality firms within the alliance to co-operate and develop quicker and further” he said.
Fingland added:”In creating Praxity we make it possible for a diverse range of accounting firms that are committed to high service standards to do business internationally. Ultimately that translates into enhanced service for clients who deal regularly with multinational business issues.”
De Cambourg told IAB that the focus for the first 12 mouths of Praxity’s existence will be to put in place a series of processes for its operation. He said that it is hoped that the selection of members for the new association, a procedure which is due to begin in January 2007, will be completed as soon as possible. Until then, de Cambourg added, the chairman and deputy chairman will be responsible for the legalities of establishing Praxity.
The legal vehicle chosen for Praxity is an Association Internationale Sans But Lucratif. This means Praxity will operate under Belgian law as a not-for-profit specific foundation once it is approved by Royal Decree. The name was chosen because it is an amalgamation of “practice” and “city”. De Cambourg explained: “It’s the idea of having activities in the city and for the public good, because auditors have an important role within the capital markets. We want to offer high quality services for all companies in all countries.” Further information on the new alliance will be released next year.

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