KPMG is one of the largest professional services firms in the world. KPMG employs over 136,500 peopleKPMG 2008 revenues grow 14.5% to US$22.7 billion in a global network of professional services firms spanning over 140 countries. Composite revenues of KPMG member firms in 2008 were $22.7 billion USD (14.5% growth from 2007). KPMG has three lines of services: audit services, tax services, and advisory services.

KPMG is a Big Four auditor, alongside PricewaterhouseCoopers, Ernst & Young and Deloitte Touche Tohmatsu.

Early years

The firm was established in 1870 when William Barclay Peat formed an accounting firm in London.KPMG - History 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 Klynveld opened his accounting-firm in Amsterdam. Later he merged with Kraayenhof to form Klynveld Kraayenhof & Co.

Mergers

In 1979 Thomson McLintock formed KMG (Klynveld Main Goerdeler) as a grouping of independent national practices to create a strong European-based international firm. Then in 1987 Thomson McLintock/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 Peat Marwick McLintock in the UK..

In 1990 the two firms settled on the common name of KPMG Peat Marwick McClintock but in 1991 the firm was renamed KPMG Peat Marwick and in 1995 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.

Recent history

In 2001 KPMG divested its U.S. consulting firm through an IPO of KPMG Consulting Inc, which is now called BearingPoint, Inc..

The UK and Dutch consulting arms were sold to Atos Origin in 2002.

In 2003 KPMG divested itself of its legal arm, Klegal and KPMG LLP sold its Dispute Advisory Services to FTI Consulting.

KPMG's member firms in the UK, Germany, Switzerland and Liechtenstein merged to form KPMG Europe LLP in October 2007. They appointed joint Chairmen, John Griffith-Jones and Ralf Nonnenmacher.

It was announced in December 2008 that two of Tremont Group's Rye Select funds, audited by KPMG, had $2.37 billion invested with the Madoff "Ponzi scheme." Class action suits were filed.