Kreston Global Adds Nepal's SAR Associates

Kreston Global announced on May 12, 2026 that SAR Associates of Nepal has joined its international network, a strategic foothold for the mid-tier accountancy group in South Asia. The move brings Kreston’s presence into Nepal’s regulatory and commercial landscape at a time when local compliance complexity and inbound investment flows are both rising. The addition was disclosed in a press release picked up by Yahoo Finance on May 12, 2026 (Yahoo Finance, May 12, 2026), and is positioned by Kreston as part of measured geographic expansion into underrepresented jurisdictions. For institutional stakeholders, the development signals growing competition among mid-tier networks to capture growth in emerging markets outside the Big Four’s traditional strongholds.

Context

Kreston Global is a network of independent accounting and advisory firms that has been expanding selectively across Asia and Africa in recent years. The group’s public materials indicate operations in more than 120 jurisdictions (Kreston Global website, accessed May 2026). The addition of SAR Associates gives Kreston local access to Nepal’s economy, which has an approximate population of 30 million (World Bank, population data 2023) and a structurally high dependence on remittances. According to World Bank figures, remittances comprised roughly 22% of Nepal’s GDP in recent years (World Bank, 2023), which influences both corporate cash flows and the credit profiles of local borrowers.

Kreston’s expansion into Nepal should also be viewed relative to competitors. Networks such as BDO cite footprints in about 162 countries (BDO website, accessed May 2026), highlighting that mid-tier networks remain in a competition to consolidate presence where the Big Four are less dominant. For multinational corporations and regional private equity investors looking at Nepal or diaspora-driven business models, the presence of a globally connected local firm provides a commercial audit and advisory pathway that can facilitate cross-border transactions and reporting harmonisation.

The timing coincides with incremental reforms in Nepal’s business environment and an increase in infrastructure and private sector activity. Policymakers in Kathmandu have maintained a steady reform dialogue with multilateral lenders through 2024–25, and investor-facing changes—procurement rules and tax administration updates—are increasing demand for external audit and advisory services. Kreston’s announcement should therefore be interpreted as part of a broader strategic effort by professional services networks to embed local expertise ahead of anticipated deal flow.

Data Deep Dive

The primary confirmed datapoint is the announcement date: May 12, 2026 (Yahoo Finance, May 12, 2026). Kreston’s public communications emphasise the network’s jurisdictional reach; the phrase "more than 120 jurisdictions" is used in its corporate profile (Kreston Global website, accessed May 2026). Nepal’s demographic and macro backdrop provides context to why an international network would prioritise the market: population ~30 million (World Bank, 2023) and remittances approximating 22% of GDP (World Bank, 2023). Those remittance inflows create a sizeable ecosystem of financial intermediation, small-scale lending, and compliance needs for expatriate-owned businesses.

From a service-demand perspective, the market opportunity is quantifiable though modest in absolute size. Nepal’s GDP in current dollar terms remains in the low tens of billions, making it a smaller addressable market compared with South Asia’s larger economies. Nevertheless, the number of registered companies—SMEs, non-bank financial institutions, and remittance-linked enterprises—creates recurring demand for audit, tax, and advisory services where local capacity and international standards often need bridging. For cross-border investors, the presence of a Kreston-affiliated firm can reduce onboarding friction: internationally recognisable network membership decreases perceived audit risk in financial due diligence.

A comparative data point is instructive: while the Big Four maintain selective operations in Nepal through member firms or affiliates, mid-tier networks have been the primary providers for smaller corporates and many international NGOs. BDO’s global footprint (around 162 countries, BDO website, accessed May 2026) and RSM’s presence in over 120 markets show the competitive landscape. Kreston’s incremental jurisdictional expansion is therefore consistent with a broader industry dynamic in which mid-tier networks grow through targeted additions of reputable local firms rather than establishing wholly-owned subsidiaries.

Sector Implications

For the professional services sector, the SAR Associates addition exemplifies network-driven market entry strategies that prioritise reputation and regulatory alignment. Institutional investors evaluating deal pipelines in South Asia should note that network membership can materially affect the quality and comparability of financial statements. An audit conducted by a Kreston-affiliated firm will typically align with global network policies on independence and technical support, which matters in cross-border M&A and syndicated lending scenarios.

From a client perspective, multinationals and private equity firms operating in Nepal benefit from a single point of contact within a network when consolidating financials or meeting group audit requirements. This reduces the administrative cost of interfacing with multiple local providers. For local corporates, access to international technical resources on transfer pricing, IFRS transition, or regulatory advisory can improve financial transparency and, over time, reduce the cost of capital by improving the quality of reported earnings.

On the staffing and talent front, SAR Associates’ integration will also influence capacity building. International networks routinely deliver training, technical updates, and methodological template sharing. That can accelerate local upskilling, reducing reliance on expatriate consultants for complex engagements. Over a multi-year horizon, such upskilling can translate into a larger addressable market for higher-value advisory services, including transaction advisory and forensic accounting.

Risk Assessment

The commercial upside should be balanced against execution and regulatory risks. Nepal’s regulatory environment remains evolving; tax administration changes, foreign exchange restrictions, and periodic political volatility can complicate the delivery of cross-border professional services. Kreston’s ability to ensure consistent audit quality across jurisdictions depends on effective oversight, training, and the enforcement of network-wide independence rules—areas where mid-tier networks historically face governance challenges as they scale.

Competition risk is material. Larger networks such as BDO and RSM, as well as the Big Four, can respond by deepening partnerships or cross-referrals. The presence of multiple global players increases price competition for standard audit work and compresses margins. Moreover, in a market where remittances and SME activity dominate, revenue per client may remain low relative to developed markets, requiring efficiency gains to sustain profitability.

Operationally, SAR Associates will need to adapt to Kreston’s technical and compliance frameworks. Integration costs—training, IT harmonisation, and possible capital expenditure—are front-loaded. For institutional clients engaging SAR Associates under Kreston’s aegis, the short-term uncertainty around process standardisation may generate cautious procurement preferences until a track record of consistent engagements is established.

Fazen Markets Perspective

Kreston’s move into Nepal is strategically sensible but should be seen as defensive as much as offensive. The network is filling a gap where international standards are increasingly required but where the Big Four presence is not yet fully entrenched. We view this as part of a longer-term play: networks like Kreston can aggregate a portfolio of jurisdictional specialists and then monetise higher-value advisory services once a critical mass of compliant financial reporting emerges.

A non-obvious implication concerns risk-adjusted deal sourcing. As regional private equity activity rises—driven by diaspora capital and infrastructure finance—networks that can provide immediate, trusted auditing and advisory services will shorten transaction timelines. That creates an indirect revenue stream for the network beyond traditional audit fees, including diligence retainers and post-deal integration advisory. Institutional investors should therefore treat network additions not merely as marketing wins but as structural enablers of deal flow in smaller markets.

Contrarianly, this expansion could also entrench a two-tier market: firms aligned with global networks may capture the highest-quality transacted deals, while unaffiliated local firms pursue commodity audits. Over time, this bifurcation could widen service pricing dispersion, with consequences for valuations in sectors sensitive to audit quality, such as financial services and listed SMEs.

Bottom Line

Kreston Global’s onboarding of SAR Associates on May 12, 2026 extends the network into Nepal’s ~30m population market and strengthens its South Asia coverage; the move is strategically consistent with mid-tier networks targeting under-served jurisdictions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.

FAQ

Q: Will this change how international investors approach Nepal?

A: Practically, yes. The presence of a Kreston-affiliated firm reduces perceived audit friction for cross-border transactions and can expedite due diligence timelines. It does not, however, remove macro or regulatory risk tied to Nepal-specific policies.

Q: How does Kreston’s footprint compare with rivals?

A: Kreston cites operations in more than 120 jurisdictions (Kreston Global website, accessed May 2026) compared with networks such as BDO at about 162 countries (BDO website, accessed May 2026). The difference is strategic: larger footprints can facilitate global client servicing, while targeted additions can improve local market penetration.

Q: What are practical implications for listed companies in Nepal?

A: Listed entities seeking international capital or cross-border listings will find it easier to source internationally-aligned audit and advisory work. However, audit quality convergence takes time; investors should review engagement tenure, independence disclosures, and technical resources behind the local firm.

For further reading on regional professional services dynamics and transaction implications, see our broader research on cross-border advisory networks and market entry strategies at topic and recent coverage of professional services expansion in South Asia at topic.