I’d like to anonymously report that Grant Thornton is conducting another round of layoffs, affecting approximately 150 employees, primarily within the tax division. This comes amid broader concerns about the firm’s direction and workforce strategy. All impacted have been notified but this comes less than six months since 350 were laid off surrounding PE deal.

A quick Reddit search to see if we could find anyone talking about layoffs at GT gave us this:

Grant Thornton Layoffs
byu/HarryNobz inAccounting

Alright, confirmed. We should have written this up Friday night, alas did not and WSJ scooped us. It happens. Some details WSJ received:

“Grant Thornton has made targeted staffing decisions to best meet the needs of the clients, markets and industries it serves,” the firm said in a statement.

The affected employees will receive their full salary and benefits through the end of the calendar year and a severance package, Mark Margulies, national managing principal for U.S. tax services, said in a memo to tax staff reviewed by The Wall Street Journal.

The cuts are primarily focused on “meeting market demand and reallocating capacity from where growth has slowed to areas where growth is accelerating,” Margulies said in the memo.

*insert jerk-off hand motion here*

The post-PE deal layoffs referenced by our tipster happened in May. Catch up on that here:

TLDR: In May, two months after the majority sale to New Mountain Capital was announced, GT laid off about 3.5% of the workforce across all service lines. This on top of the three percent they laid off the prior spring and about 200 people axed last November. As far as we know, GT US’s headcount is around 9,700.

Here’s a bit WSJ didn’t report, courtesy our tipster:

Less than a month ago, they sent all of the partners and managing directors to the Bahamas for a firm meeting to celebrate our 100th year of the firm.

Nice. Of course they did. They were probably also celebrating the impending merger with Grant Thornton Ireland, a deal that was backed by — you guessed it! — New Mountain Capital. Allegedly GT Ireland’s 45 equity partners were looking at payouts around €6.5 million ($6.9 million USD) in cash for the GT US deal.

Grant Thornton US had supposedly been waving New Mountain Capital’s money around hoping to have a three-way merger between them, Ireland, and GT UK however GT UK appeared to want nothing to do with this unholy threesome and went with a different private equity firm in their own deal.

According to FT’s sources, Grant Thornton UK was able to get bidding up to approximately £1.3 billion ($1.6 billion USD) in an auction organized by Rothschild, only slightly short of the £1.5 billion partners were hoping for. GT UK revenue for 2023 was £654 million with operating profit of £146 million ($183 million USD). These PE firms have lost their minds.

The Bahamas trip is of course unconfirmed but we wouldn’t be at all surprised. We’ll see if we can dig up more, get in touch if you have anything to add.

Chipman69, you know what to do.

The post Grant Thornton Partners Partied in The Bahamas Before This Latest Round of Layoffs (Allegedly) appeared first on Going Concern.

On Friday, we prompted the readership to speculate about which mid-tier accounting firm was going to announce a private equity investment on Monday after a Reddit post teased an imminent announcement. Our money was on Carr, Riggs, & Ingram and a tip that came in shortly after publication confirmed that suspicion.

Imagine our surprise when the first press release of Monday morning wasn’t CRI but PKF O’Connor Davies. PKF announced they were getting cozy with Investcorp and Public Sector Pension Investment Board, one of Canada’s largest pension investment managers.

Was our intel wrong? No! CRI just hadn’t gotten around to announcing their deal first thing Monday morning. More like first thing Monday afternoon.

Like PKF, CRI struck a deal with not one but two outside capital firms:

Centerbridge Partners, L.P. (“Centerbridge”), a global alternative investment manager with approximately $40 billion in assets under management as of September 30, 2024, and a focus in the financial services, technology, industrial and healthcare markets, and Bessemer Venture Partners (“Bessemer”), a venture capital firm with more than $18 billion in assets under management primarily invested in the consumer, financial technology, enterprise, and healthcare markets. This first-time investment of institutional capital for CRI recognizes the firm’s exemplary track record of growth and creating value for its clients and is intended to help accelerate the firm’s innovation initiatives and expansion strategies.

The private equity deals in accounting are coming so fast they’re dropping on the same day now. WHO’S NEXT?

Earlier:

The post Private Equity is Picking Up Accounting Firms By the Handful Now appeared first on Going Concern.

Put on your tallest wading boots and let’s see the press release:

“We could not be happier to add a firm like Clearview Group to the Citrin Cooperman family. Clearview Group’s ability to expand our service offering and offer up-market solutions to our client base will allow us to continue to help our clients Focus on What Counts,” said Citrin Cooperman Advisors LLC CEO Alan Badey. “Clearview Group’s focus on a strong culture and technical excellence will fit perfectly with Citrin Cooperman.”

“We are thrilled to be joining Citrin Cooperman,” said Brian Davis, CEO of Clearview Group. “With Citrin Cooperman’s expansive geographical presence and impressive suite of world-class professional services and industry insights, this transaction enables us to expand the reach of our industry-leading risk and enterprise solutions to continue to provide clear solutions to the complex problems large corporations are facing in today’s ever-evolving market conditions.”

New Mountain Capital — the same PE firm that is pouring cash into Grant Thornton — has owned a majority stake in Citrin Cooperman since 2022.

Let’s check out Glassdoor to see salaries at Clearview Group shall we?

Because modern day PE-backed deals are extra complicated, Citrin Cooperman Advisors LLC will acquire the non-attest assets of Clearview Group, Inc. while Citrin Cooperman & Company, LLP will acquire the attest assets of BD & Co., Inc., Clearview’s licensed CPA firm.

The press release says the transaction is expected to close November 2024 so…any day now.

Related:

The post PE-Backed Citrin Cooperman Adds a 150-Person Firm to the Roll appeared first on Going Concern.

There doesn’t appear to be a press release about this nor is Armanino listed on Further Global’s companies page. Of their “differentiated capital approach,” Further Global says:

Our objective is to be the Capital Partner of Choice to the financial services industry. We seek to be a differentiated form of capital and consider ourselves experts in constructing creative, bespoke solutions within our target universe. In this process we endeavor to take a highly collaborative approach with the management teams behind which we invest, ensuring proper incentive alignment and an open line of communication. We seek to partner with firms in which we can create value by leveraging our extensive network, industry knowledge and operational expertise to assist with business, financial and product strategies on both an organic and inorganic basis.

We target equity investments of $75 to $200 million and have the ability to execute significantly larger transactions through co-investment. While we typically seek to take control positions, we are very comfortable operating in minority positions, given appropriate alignment and governance rights.

Armanino is currently #20 on the INSIDE Public Accounting Top 100 with revenue of $640,448,684.

All we could find about this deal other than the AT article published today is this bare bones September 30th post on MergerLinks: Further Global Capital Management to invest in Armanino. It’s been rumored for a few months now that Armanino was very close to striking a deal with someone for a minority stake so none of this is surprising.

If anyone has more info get in touch.

Armanino takes on minority investment [Accounting Today]

The post Add Armanino to the List of Top 20 Firms in Bed With Private Equity appeared first on Going Concern.

CohnReznick has $150 million of EBITDA, they said. The firm is currently sitting at #16 on the INSIDE Public Accounting Top 100 with $1,052,365,413 in revenue.

In June, Financial Times ran a teaser story that named three firms very close to inking private equity transactions — PKF O’Connor Davies, Carr, Riggs & Ingram, and Aprio. Aprio’s private equity deal was leaked ahead of an announcement shortly thereafter, CRI hasn’t made a deal yet as far as we know but is exploring options, and who cares about PKF O’Connor Davies.

A CohnReznick deal would mean six of the country’s top 20 accounting firms have taken private equity investment. In descending order by revenue size those firms are BDO (6), Grant Thornton (7), Baker Tilly (10), EisnerAmper (17), and Citrin Cooperman (19).

If anyone in the know feels like talking, get in touch via email or text. Tips are always anonymous.

CohnReznick said to review PE investment interest by early 2025 [PE Hub]

The post CohnReznick is Allegedly Exploring a Private Equity Deal appeared first on Going Concern.

RSM US and RSM UK announced the two entities “intend to establish a partner-owned multinational organization dedicated to delivering quality, globally integrated services for the middle market.” In other words, they’re merging. And of that they said:

This merger would significantly expand the multinational platform created by the U.S. and Canada with the launch of RSM Canada in 2017 to meet the growing needs of global middle market businesses and continue RSM UK’s expansion following its 2023 merger with RSM Ireland.

The integration of the two largest firms in the RSM International Network would advance RSM’s global 2030 strategy by creating a leading platform for assurance, tax and consulting services worldwide.

Following the infographic is this in big letters:

Client service from 4 countries supported by integrated teams in India and El Salvador

Ohhhh, we get it.

In July, RSM US announced plans to more than double the amount of staff in India from 2,000 to 5,000. Last we checked, RSM US had around 17,000 employees including the offshore ones. “The proposed merger will enable seamless service delivery across the U.S., the UK, Canada and Ireland,” they said.

And now for the quotes. “Our clients have long desired to be served by a financially integrated transatlantic organization. This merger will create a platform to more effectively serve client needs with quality services and more seamless access to our resources,” said Brian Becker, Managing Partner and CEO of RSM US. “We are doubling down on our future as a dynamic, partner-owned platform, at a time when the industry is undergoing transformation. We are well capitalized to continue investing in our growth and the advancement of our 2030 global strategy. We have a deep and long-standing relationship with our UK colleagues, and we look forward to joining forces to drive value for our clients, owners, employees and the entire RSM International network.”

Becker told Financial Times earlier this year that RSM had no plans to court private equity investment, hence the “partner-owned” comment above.

“RSM UK has seen strong growth in revenue and profits as we’ve repositioned the firm over the last four years,” said RSM UK CEO Rob Donaldson in his sanitized and PR-polished comment. “Bringing our UK and Irish firms together with our U.S. and Canadian colleagues is the next logical step on our journey. We already have strong bonds with our transatlantic colleagues and work together with a common aim, to be leading advisors to the middle market.”

“We’ve decided to come together to form a unique partnership that goes further to service the needs of our clients as they expand globally, and to create terrific opportunities for our own talent,” he added. “Now is the time to accelerate our ambitions by drawing on each other’s considerable strengths to become the middle market advisor of choice, globally.”

A tipster says to us Rob Donaldson told partners at a conference earlier this year that the firm had no plans to do a transaction so this news comes as a bit of a shock. We’ll dig more into that, sounds like there’s some good drama at the center of that particular Tootsie Pop.

RSM US and RSM UK pursue transatlantic merger to strengthen client offering [RSM]

The post RSM to Merge With RSM appeared first on Going Concern.

According to The Real Deal, Weaver (#31 IPA 100, $328,276,610 in revenue) is taking 36,500 square feet at the Penn 1 building in Midtown. The move comes after they merged with Buchbinder Tunick & Company who already had 8,000 square feet at the tower. A source tells TRD asking rent for the entire 28th floor was $105 per square foot and the lease duration is 11 years.

Side note: we had no idea Weaver’s website was so pretty. Props to their web developer.

Says Penn 1 owner Vornado Realty Trust of the building:

Punctuating the Manhattan skyline, PENN 1 is a Class-A, 55-story tower of over 2.5 million square feet, providing breathtaking 360-degree views of the entire city and direct access to Penn Station and Moynihan Train Hall.

PENN 1 has undergone a major transformation with a focus on providing a first-class hospitality experience to its tenants. The result of this redevelopment is a sleek, modern building that seamlessly blends state-of-the-art technology with luxurious amenities to create an unparalleled tenant experience.

Weaver MP John Mackel told TRD the proximity to Penn Station was a big draw. “At Weaver, we are dedicated to our people-centric culture that puts our team members in the best position to collaborate, innovate and serve our clients well,” he said in a news release. “The redeveloped PENN 1, which sits atop North America’s most accessible transit hub and features unparalleled in-building and neighborhood amenities, proved to be an ideal spot to consolidate our New York City team.”

And they have on-site pickleball courts!

The post Weaver’s Upgrading to a Whole Floor in NYC appeared first on Going Concern.

CBIZ is the biggest firm to be data breached in recent months that we’re aware of since PwC and EY found themselves tangled in the MOVEit cybersecurity breach and ransom last year. CBIZ was also hit by the MOVEit vulnerability and informed 35,843 people their Social Security numbers were probably jacked by bad actors last year.

CBIZ Benefits & Insurance Services, Inc. provides actuarial, administration and investment advisory solution services for organizations, as well as providing recordkeeping and administration for retiree health and welfare plans.

According to the notification, it was retiree health and welfare plans that were accessed and the data included names and Social Security numbers.

Says the notification:

On June 24, 2024, CBIZ learned that an unauthorized party may have acquired information from certain databases. CBIZ promptly launched an investigation with the assistance of cybersecurity professionals. CBIZ’s investigation determined that an unauthorized party was able to exploit a vulnerability associated with one of its web pages, and acquired information from certain databases between June 2, 2024 and June 21, 2024. CBIZ conducted a review of the data acquired and determined that individuals associated with multiple CBIZ clients were impacted by the incident.

The retiree plan clients are:

• Central Pennsylvania Teamsters
• Knoll, Inc.
• Liberty Utilities
• Sanofi
• Sanofi Pasteur

Seven Maine residents were affected by this breach. No information was given on how many victims there may be in other states in the AG filing referred to here. CBIZ began notifying victims on August 28, 2024.

The post Hackers Stole Social Security Numbers From CBIZ Again appeared first on Going Concern.

Completely unsubstantiated rumor of the day: pic.twitter.com/xNiStHwgnB

— Going Concern (@going_concern) July 24, 2024

Didn’t hear much on the wire after that except a small handful of people who said this could be in the works but couldn’t or wouldn’t offer any information beyond that. Gonna be honest with you here fam, I was sure this was a troll.

IT’S NOT. This press release dropped this morning:

CBIZ, Inc. (NYSE: CBZ) (“the Company”), a leading national provider of financial, insurance and advisory services, today announced that it has entered into a definitive agreement to acquire the non-attest business of Marcum, LLP (“Marcum”), which will make CBIZ the seventh-largest accounting services provider in the U.S. with approximately $2.8 billion in annual revenue.

Concurrent with the closing of this transaction, the attest business of Marcum will be acquired by Mayer Hoffman McCann P.C., a national independent CPA firm with which CBIZ has had an Administrative Service Agreement for over 25 years.

The cash-and-stock transaction is valued at approximately $2.3 billion. It is expected that approximately half of the transaction consideration will be paid in cash and the remainder shares of CBIZ common stock.

CBIZ even explained their reasoning for this transaction, in bullet points no less.

Expected Transaction Benefits Post-Close:

• Market Position: Solidify position as a leading provider of professional services to the growing middle market and seventh largest accounting services provider in the U.S.
  
• Growth Strategy: Scale accelerates growth and further positions CBIZ as an acquirer of choice
  
• Our People: Attract and retain the best and brightest in our industries, enhance learning and development aligned to meaningful career paths and expanded growth opportunities
  
• Client Experience: Offer an unmatched breadth of services and depth of expertise including the development of innovative and actionable solutions
  
• Industry Expertise: Combined industry knowledge enables access to new sectors and expands presence in target industries
  
• Innovation and Technology: Enable greater investment in technology to support data-driven insights and solutions while driving innovation, increasing efficiency and enhancing performance
  
• Shareholder Value: Expect to be accretive in 2025, with an estimated contribution to Adjusted earnings per share of approximately 10%

“Today marks the most significant transaction in CBIZ’s history as we announce our agreement to acquire Marcum,” said Jerry Grisko, President and Chief Executive Officer of CBIZ. “At closing, our company will have combined annual revenue of approximately $2.8 billion, more than 10,000 team members and over 135,000 clients. Together, we will provide a breadth of services and depth of expertise that is unmatched in our industry, allowing us to bring a broader array of high-value solutions to our combined client base. This transaction enables CBIZ to strengthen our presence in key markets, continue to attract and retain top talent, and innovate through technology. We are excited about our future together and the opportunities it will provide our people, the solutions we will bring to our clients and the value we expect it will create for shareholders.”

Jeffrey Weiner, Chairman & Chief Executive Officer of Marcum, said, “CBIZ and Marcum share a dedication to providing high-quality innovative professional services to our clients, and personalized, local client relationships supported by national resources. By joining forces, we will capitalize on our strengths and leverage our similar models to bring more diversified services and even greater subject matter expertise to our clients and attract new business. We both have a proven track record of growth through successful acquisitions, and we are excited to bring these two best-in-class organizations together.”

More to come later.

Update 11.1.24: It’s official, the $2.3 billion deal is done.

Related:

The post Turns Out The Tipster Who Said Marcum and CBIZ Are Merging Wasn’t a Troll After All (UPDATE) appeared first on Going Concern.

Anyway, RSM US and RSM Canada, along with their one office in El Salvador (wat) and four locations in India brought in a clean $4 billion in fiscal 2024. See it’s right here in this chart:

Revenue by service line is as follows:

• Assurance: 28%
• Tax: 32%
• Consulting: 39%
• Other: 1%

This is nearly identical to last year’s numbers except tax had 32% and consulting had 38%.

Our headline for last year’s revenue announcement was “RSM US Is That Much Closer to $4 Billion in Revenue” and by gosh, they got there. We knew you could do it, RSM. Let’s compare this year to last:

God, we’re going to have to do math aren’t we? In 2024, they added 609 employees and 35 partners and principals, got rid of two locations in the US, and made $300 million more in revenue. Approximately 2,000 of their slightly more than 16,000 employees are in India with plans to double that number within three years.

We haven’t yet discussed RSM’s Global 2030 strategy so let’s throw this in here:

There’s also a section called A compelling talent experience that reads exactly as you’d expect it to read (as in, instead of the light tapping noise of hitting the keys as this was typed out it made only fapping sounds):

This year, we brought together people, process and technology to help deliver a digital enabled talent experience. We implemented new, user-friendly systems and processes to enable our people to find the information they need more effectively with new self-service options.

One example is Talent Compass, our new global human resources (HR) service desk. Talent Compass provides our people with a centralized place to get their personal HR-related questions answered. Through Talent Compass, our people can access on-demand resources and quickly connect live with a member of our talent team, enabling a consistent, streamlined experience.

Additionally, we transitioned to Workday as our integrated human capital management and finance system, replacing various existing systems with one modern application to simplify business processes and enable our teams to be as efficient and effective as possible across the globe.

How’s Workday going anyway? Last we heard it was not good.

Looks like RSM won’t have any problems maintaining its position in the top ten hierarchy.

The post RSM US Had a Good Year appeared first on Going Concern.

• Matthew Bohdan, risk and accounting advisory services, Southfield
• Eric Bowers, Plante Moran Financial Advisors, East Lansing
• Amanda Carrigan, risk and accounting advisory services, Denver Tech Center
• Alicia Cole, wealth management, Detroit
• Ben Cote, tax, Denver Tax Center
• Adam Counts, assurance, Southfield [Ed. note this has to be one of the best accountant names in history]
• Ryan Defer, tax, Chicago
• Stephen Eckert, tax, Chicago
• Ryan Fedricks, Plante Moran Financial Advisors, Auburn Hills
• Alan Gallatin, tax, Southfield
• Dana Hullinger, tax, Southfield
• Curt Hurd, assurance, Southfield
• Rachelle Jeselnik, tax, Chicago
• Matthew Keigher, assurance, Auburn Hills
• Chad McCoy, tax, Chicago
• Amber Mitchell, assurance, Cincinnati
• Sara Montgomery, wealth management, Denver Tech CenterStephen Palmer, tax, Columbus
• Laura Parish, tax, Chicago
• Shawn Riley, Plante Moran Financial Advisors, Southfield
• Mark Sommerfeld, tax, Grand Rapids
• Justin Switzer, tax, Ann Arbor
• Colin Taggart, cybersecurity, Southfield
• Alisha Taranek, tax, Ann Arbor
• Jessica Wiltjer, tax, Grand Rapids

So if we managed to add correctly, tax comes out on top with 12 people followed by assurance with four, Financial Advisors with three, risk and accounting advisory with two, wealth management also with two, and cybersecurity with one.

In addition to these 25, two people were promoted to affiliated entity members:

• Jonathan Grossman, Plante Moran Trust, Chicago
• Zack Otte, Plante Moran Realpoint Investment Advisors, Denver Tech Center

“We’re excited to welcome these incredible professionals to our partner group,” said Jason Drake, Plante Moran managing partner. “This group of leaders has already added so much value to the firm and there is no doubt they’ll continue to contribute to Plante Moran’s overall growth, success and culture.”

Plante Moran promotes 25 new partners and two new affiliated entity members [Plante Moran]

The post Promotion Watch ’24: Plante Moran Welcomes 25 New Partners and Two Other Guys appeared first on Going Concern.

To tide you over until we can do that deep dive, the good folks at TR just published an article on tax firms’ top strategic priorities. Talent continues to influence the obsessive thoughts that bubble over in firm leadership’s brains when they’re trying to fall asleep every night however growth, pricing, and efficiency are of significant importance, too. Depending on what size firm you ask.

Here’s a handy chart:

Says the full report:

• Small firms (1-3 people) tended to lean in the direction of maintaining the status quo, preferring a more balanced approach to prioritization.
• Midsize firms (4-29 people) were much more likely to pursue talent development as a priority and drive efficiencies through streamlined workflows and aggressive use of automation.
• Large firms (30-plus people) had the resources to pursue multiple priorities at once, including talent development and growth through efficiencies found using more sophisticated technology and automation. Large firms were also more likely to explore different pricing strategies for the broad range of business services they offer.

On the topic of pricing, Thomson Reuters says this is the first time ever it has appeared in the top priorities list. Ron Baker and the rest of the Death to the Billable Hour gang will love this part:

…largely because the wisdom of hourly billing is being questioned by both clients and their firms. Many clients don’t like hourly billing because it is unpredictable; hence the rise in flat-fee and project-based pricing, among other alternatives types of pricing. Firms, too, have come to realize that hourly billing doesn’t necessarily capture the true value of their services, particularly in the areas of business consultation, tax strategy, and decision support.

This makes a lot of sense when you think about how popular advisory services are these days. Don’t expect this change to happen as rapidly as automation, they’ve been debating this for like 15 years and the old-timers are really having trouble letting go. Here’s Ron Baker’s value pricing pitch from almost ten years ago:

A big problem with hourly billing is it’s an internally focused metric. It looks at our costs and our inputs. It doesn’t look at our outputs and outcomes. There’s nothing in the hourly billing formula that looks at client value.

The other problem with it is it limits an accounting firm’s income. As more and more firms are moving to the cloud, a lot of labor that CPAs used to do is now being automated. If you’ve got a business model that says, “I sell time,” and the time it takes you to do more work is being driven down because of all these technological changes, unless your hourly rates are increasing faster than productivity, your income is going to suffer, and your profitability is going to suffer. And our hourly rates have not been increasing faster than our productivity. So it’s a very limiting business model.

But back to the report. Comparing 2023 to 2024, we see efficiency still dominates the list, talent is once again a headache (note: retention is now the word of the day when we talk talent which should not be confused with the pipeline problems that get all the headlines), and growth has slipped a bit.

“Growth may have slipped down the priority list; but then again, lack of growth hasn’t been a problem for most firms either,” says the report. “Indeed, a majority of firms reported an average revenue increase of 24% over the past 12 months. So whatever firms are doing, it’s still working.” Mid-size firms interpret growth as expanding their client base while the larger firms see implementation of automation as the best way to grow. In other words, “growth” means different things to different-sized firms.

We’ll do a deeper dive into the report later, hopefully this has whet your appetite.

Survey Methodology:
Surveys for the 2024 State of Tax Professionals Report were conducted in the first quarter of 2024.* The survey involved 500 respondents from tax & accounting firms of all sizes, although a bit more than half (51%) of respondents were from midsize firms (4-29 people), and 38% were from small firms (1-3 people). By region, slightly more than half (51%) of respondents were from firms in the United States; the rest were from firms in the United Kingdom, Canada, Australia, Brazil, and Argentina. Also, 60% of the respondents were male, and the age range of all respondents was represented relatively equally by decade, from under 40 years old to over 60 years old. The vast majority (85%) of respondents reported having leadership roles in their organization, and almost half (48%) were either partners or principals.

The post Let’s Talk About This Year’s Strategic Priorities at Tax Firms appeared first on Going Concern.

So FT ran this yesterday: ‘Private equity groups poised to own one in three top US accounting firms‘ and in it, they paraphrased people familiar with the matter as saying “ten of the 30 largest US accounting firms could soon be in private equity hands.”

The article goes on to say:

The acquisitions by financial buyers of those two top-10 firms by revenue opened the floodgates to other deals, the people said, positioning private equity to increase its influence over the US accounting profession dramatically.

One top-30 firm, Atlanta-based Aprio, was planning a deal to sell a majority stake to the private equity firm Charlesbank Capital, according to people familiar with the situation.

Two more — New York’s PKF O’Connor Davies and Carr, Riggs & Ingram of Alabama — had engaged bankers to run sale processes, they said.

The two top-10 firms they’re talking about are Grant Thornton and Baker Tilly.

FT has some details on each of the firms mentioned, such as Carr, Riggs & Ingram shopping themselves out to three suitors and using “premier global boutique” investment bank William Blair to advise on the deal. And PKF O’Connor Davies working with Capstone Partners. Both firms failed to respond when FT reached out for their piece.

Aprio did respond but hit ’em with a no comment. We’re told by a tipster Aprio is in the middle of a private equity deal that is “all but finalized,” information that was passed along to staff in a town hall yesterday. This Reddit comment co-signs that story:

Comment
byu/Designer-Can-5891 from discussion
inAccounting

There’s also apparently some drama with the IT team getting ousted but we need to dig into that some more.

If you’ve got more info, you know what to do. Anonymous tips can be sent by email or text.

Update: There’s a Reddit thread about this situation worth sharing with you. The fear and uncertainty is not unexpected but unpleasant to read regardless.

Private Equity Buyout at Aprio
byu/Intelligent-End-8973 inAccounting

The post We Think We Know Who’s About to Do a Big PE Deal (UPDATE) appeared first on Going Concern.

• Firm structure and operational model
• Leadership and culture
• Talent
• Technology
• Financial performance and service lines

See: Here’s How Mid-Tier Accounting Firms Are Feeling About Private Equity and M&A for a breakdown on the PE and merger topic.

For this piece, we’re going to check out the talent portion and how hybrid work relates to it. We’ll get to technology in a later piece because once again this is going to run long. Everyone (by everyone I mean leadership) is waiting around for technology to swoop in and save the day but for the moment, adoption of next-gen tech solutions is slow. And that’s not necessarily a bad thing, the accounting profession is reactive and scared of taking big risks for a reason. See: Accounting Firms Will Not Be Leading the AI Revolution

The Talent Problem at Mid-Tier Accounting Firms

The short summary of the ICAEW’s findings is as follows:

Talent is the top challenge currently facing the mid-tier, with attraction and retention of qualified staff being the largest concern, and recruitment of trainees a secondary issue. The importance of future-proofing the skills of chartered accountants was recognized by firms, largely driven by changes in technology and the increasing breadth of work that they are likely to be required to perform. Firms recognize that they must be an attractive place to work. Nearly one-third of firms described their culture as ‘caring’ and while firms indicate a shift to more time working onsite, the majority still see hybrid working as the norm in the future. Investments in technology, offshoring and outsourcing initiatives can potentially help to address talent shortages and enhance operational efficiency.

Good luck with that.

An important distinction is revealed in the survey findings and it’s this:

“Recruitment of qualified staff was a top talent challenge for 67% of respondents, while recruitment of trainees was considered a challenge by 10%”

Meaning much lip service is paid to pipeline challenges but really, mid-tier firms don’t care so much about entry-level staff. Or at least they aren’t panicking about not being able to find them. A steady supply of fresh blood is how you get qualified staff but I suppose that’s a future problem we’re not too pressed about for now. They do sort of acknowledge this:

A top three talent challenge for 43% of those surveyed was ‘future-proofing skills’, which speaks to the need to ensure the quality of staff in the long term. Meanwhile, 45% of respondents confirmed that ‘succession planning’ was a key talent challenge. This seems to acknowledge the importance of retaining sufficient talent to maintain the partnership and its leadership team, which is corroborated by 14% selecting the ‘attractiveness of partnership’ as a challenge.

Respondents ranked their top talent challenges and, uh, yeah, recruiting trainees barely made the board.

Communication

Along with technological prowess, a good number of respondents listed excellent communication skills as most-desired in their staff.

Effective interpersonal skills With firms predicting that future clients will require more tailored support (31%) and demand a more personalized service (14%), effective communication and interpersonal skills will continue to be very important to build strong client relationships and collaborate effectively. Investing in business and professional skills at all levels within the firm would appear to be money well spent.

This is going to be a big problem in a few years as the group of professionals who experienced pandemic disruption four years ago at critical points in their adult lives like college and their first accounting job start reaching the higher rungs on the ladder. See: Big 4 Firms Are Noticing a Sudden Skills Gap in New Hires

On the topic of Gen Z — even though the mid-tiers clearly don’t care about the younguns — the report offers the usual crap about sustainability and purpose. No, Gen Z just doesn’t want to grind away at a spreadsheet for meager salaries. And millennials have been telling you this same thing for twenty years.

Culture
Gen Z have a different outlook on life to previous generations, prioritizing social responsibility, diversity, work-life balance and sustainability.

Let me interrupt them here. Stop it. Previous generations gave just as much a shit about work-life balance as Gen Z. It’s just that the talent pipeline was so robust no one in leadership cared to do anything about. Now that people at the experienced level are drifting away from the profession altogether the problem is getting worse because there are fewer people to share the load. If only they’d jacked up salaries 10-15 years ago when they had the chance.

Just 2% of firms surveyed described the culture of their firm as ‘environmentally conscious’, despite 38% stating that ESG considerations did impact decision-making at board level.

This disconnect may be contributing to the retention challenge within firms, as Gen Z seek employers that resonate with their beliefs and values. Although, when asked which words best described the culture in their firms, ‘caring’ was the third most popular choice, behind ‘collaborative’ and ‘client centric’. A sizeable proportion of respondents (21%-26%) also described their firms as ‘entrepreneurial’, ‘purpose-led’, ‘inclusive’ and ‘family-like’.

Let’s move on before I get annoyed.

Tied to communication, the report covered ways of working. According to this, the mid-tiers are accepting that some remote work is here to stay but clearly really, really want people in the office more.

Said the report:

Survey respondents indicated that client-facing staff are currently working on average two days in the office (or at client sites) each week. Looking to the next three years, respondents predicted this would change to staff spending the majority of their time in the office and at client sites. The portion of firms offering fully remote work is set to be nominal (2%), while at the other extreme 12% of those surveyed indicated that they anticipate a return to staff working fully on-site.

Changes to working patterns must allow firms to compete in recruiting and developing top talent while meeting the firm and client requirements to be on site. Hybrid working must be balanced with and aligned to individual client expectations. Close to one-third of those surveyed (31%) predicted that clients will want more tailored support in the future. Meanwhile, 14% believe clients will require more personalized relationships and their firm’s ways of working will need to deliver on this.

They really love saying they’re “collaborative,” don’t they? Walking up to someone’s desk to interrupt them when they’re in the zone is not collaboration, you guys.

When asked what word best described their firm’s culture, the most popular choice was ‘collaborative’ – which was selected by 45% of respondents. As hybrid working arrangements can create communication gaps and reduce spontaneous interactions among team members, there is a disconnect between that working model and many firms’ collaborative culture, driving a shift back to working in the office.

So that’s it on talent. If succession planning is really as important to them as they say they maybe should be a bit more worried about headcount than they purport to be. But whatever. Not my circus, not my monkeys spreadsheet jockeys.

Access the full ICAEW report here: Evolution of mid-tier accountancy firms

The post Here’s How Mid-Tier Accounting Firms Are Feeling About the Talent Crisis and Remote Work appeared first on Going Concern.

As you may remember, last November we were first out the gate with a rumor that Forvis was set to do a big merger. Apparently us letting the cat out of the bag was not well-received by certain Forvis partners who said “don’t believe everything you read on Going Concern” only for the news to hit the “real” media a day or so later. Still, they have a point.

Well unlike the Elliott Davis/Whitley Penn merger that fell apart in the eleventh hour — news that we also reported first *ahem* — Forvis and Mazars were able to hammer out the details and made their alliance official as of June 1.

Two leading professional services firms, Mazars, an international partnership operating in over 100 countries and territories, and FORVIS, a top ranked firm in the United States, today mark the official launch of their new global network, Forvis Mazars.

Forvis Mazars, a top 10 global network* is the largest new entrant into the global rankings in decades. As a two-firm network, Forvis Mazars is unique in the market and provides the agility, capacity and coverage to support clients wherever in the world they operate. This move brings increased choice in the market, serving the public interest.

It was exactly two years ago that BKD and DHG joined forces to become Forvis (that name is still stupid). Prior to that merger, the two firms were in the 14th and 17th spots, respectively, on the IPA 100 in 2021. Combining their powers pushed the conjoined firm to the 8th spot on the list the following year.

While the deal with Mazars’s global operation isn’t exactly a merger merger, Forvis did absorb Mazars USA. Mazars ‘Murica sat at #31 on last year’s IPA 100 ($258 million in revenue) so combined with Forvis’ $1.7 billion that’s still a ways behind #7 Grant Thornton’s $2.3 billion. Though who knows what’s going to happen at GT in the next few years. The absorption of Mazars USA will add 1,000 more professionals to Forvis’ existing stable of 7,000 and 14 office locations to however many Forvis had before which brings their total locations to more than 80.

The newly formed Forvis Mazars boasts more than 40,000 professionals in 100 countries. Mazars appears to have beat out Forvis for who gets to keep their logo as the new group is wearing Mazars’ old outfit.

The new network will have a global board overseeing operations. That board is:

Hervé Hélias will serve as the first Chair of the Global Network Board. Hélias also will continue to serve his ongoing mandate as Chairman of the Group Executive Board of Forvis Mazars Group, SC (formerly Mazars Group). Matt Snow, Chairman of Forvis Mazars, LLP (formerly FORVIS, LLP) will serve as Vice Chair of the Global Network Board.

In the United States, Tom Watson will continue to serve as CEO of Forvis Mazars, LLP (formerly FORVIS, LLP) and will also sit on the Global Network Board. Rob Pruitt, Fran Randall and Tim York from Forvis Mazars, LLP will sit on the Global Network Board.

David Chaudat, Pascal Jauffret, Véronique Ryckaert and Phil Verity from Forvis Mazars Group will sit on the Global Network Board.

Good thing Hervé Hélias isn’t going anywhere because that guy brings so much European swagger (Lord knows Forvis needs all the cool points they can get).

Alright, brace yourselves for the quotes.

Hélias comments: “This is a momentous and exciting time for our clients, our profession and our people. Mazars and Forvis have worked together for over 20 years and share a commitment to delivering an outstanding client experience. We are well positioned to deliver excellence, everywhere, under a single global brand. Clients will get consistent, high-quality, comprehensive services worldwide, and we remain agile and flexible to their specific needs. I am extremely proud to serve as first Chair of the Global Network Board. Working together, I am confident that our two firms will continue to empower our people to raise the bar for client service standards, while challenging industry opportunities to support future needs in local markets.”

“Forvis Mazars is built on our commitment to listen to our clients, anticipate the challenges they face, and deliver an unmatched client experience in all that we do,” Watson said. “This new network will quickly unlock new opportunities for our clients and our people, and both groups can feel confident that we are making decisions with their long-term success in mind.”

There are a few leadership changes to note as well.

New Managing Partners
Connie Cagle – Boston
Chris Clark – Dallas
Chris Lindner – Nebraska
Karine Philippon – California & Arizona
Danielle Solomon – Chicago
Heather Wallace – Birmingham, Alabama & Jackson, Mississippi
Andy Williams – Arkansas

New Assistant Managing Partners
Paula Ferreira – New Jersey
Craig Fine – Long Island
Marty Garland – Philadelphia
Carlos Martins – New York City
Rob Opitz – Fort Worth
Andy Young – Fort Wayne, Pittsburgh & Charleston

New Industry Leaders
Brad Brotherton – Healthcare National Industry Leader
Ashley Ensley – Financial Services National Industry Leader
Steve LaFrance – Healthcare Consulting Managing Partner

New Firm Leaders
John Roberts – Chief Performance Officer
Jim Blake – Co-Regional Managing Partner, Northeast Region

If anyone has details that didn’t make the press release and would like to ruin a partner’s day, get in touch. Tipsters are anonymous, always.

Congrats to the happy couple.

The post Forvis and Mazars Consummate Their Union with a Postnuptial Jerk Off appeared first on Going Concern.

As mentioned in this week’s news brief, the Institute of Chartered Accountants in England and Wales (ICAEW) put together a snazzy little report on the state of mid-tier firms based on a survey of managing partners. Keeping in mind that these are specifically mid-tier firms across the pond but the Brits are basically us with funny accents, bland food, and an unnecessary vowel littered throughout their words ending in -or. The biggest difference between our firms and theirs is that their advisory practices seem to be struggling even harder to secure work if frequent layoffs at large firms are any indication.

Without further blabbering, let’s get into the report.

Mergers & Acquisitions

As we predicted two years ago, firms of this size and under are merging — and acquiring — like crazy. We tend not to cover these stories because they’re not relevant to our predominantly US and Big 4-focused audience but I definitely see tons of them in my news feeds on a weekly basis. Says the ICAEW report:

While some accountancy firms favour lower-risk organic growth, the mid-tier has been active in using M&A for growth to meet client demand. The majority of respondents (64%) confirmed that their firm had acquired another in the past and 17% had been part of a merger. Of firms that had experienced fee growth in the past year, 21% was attributed to M&A.

And:

Whatever the approach, growth is an important item on firms’ agendas, with 29% of firms describing the culture of their firm as ‘growth led’. Looking ahead, using M&A to achieve rapid growth and build capacity appears set to continue in the mid-tier. More than one-fifth (21%) of respondents stated that their firm would look to merge with another in the next three years, and more than half (55%) are looking to make an acquisition. This propensity towards M&A was reinforced by respondents when asked for the key opportunities for their firm’s future, with 19% listing it among their top three.

Let’s add in here that now is a great time to absorb a practice or five because so many boomers who think succession planning is for bitches or who just assumed they’d get a ton of buyers at inflated prices are desperate to cash out. See also: The Old Guys Want to Cash Out. According to the most recent Rosenberg survey, 25 percent of all partners are over the age of 60, and 60 percent are over 50. It is, without a doubt, a buyer’s market and the mid-tiers are buying.

Private Equity

Move over talent, private equity is the profession’s hottest topic of 2024. Although the ICAEW’s research shows that only 12 percent of respondents had secured private equity investment, and 80 percent of those in the preceding three years, 57 percent of respondents ranked PE investment as a top three macro trend impacting the profession. 19 percent of firms said PE is attractive to them and 12 percent said it’s a top three opportunity (versus 7 percent who ranked it a top three challenge).

When discussing the opportunities around PE investment, respondents cited the ability to invest in technology, particularly artificial intelligence (AI) and automation, and the opportunity for growth. With 93% of firms surveyed looking to make further
investments in technology, capital injections from PE investors could be a great enabler and allow firms to get ahead of the curve.

As we’ve seen on our side of the pond, firms have said outright that private equity opens the door for them to make acquisitions. We saw this just the other week with Baker Tilly buying Seiler to gain a strong foothold in the tech-rich Bay Area within a few months of their private equity deal — that deal is rumored to be 50 percent of the firm and worth a billion dollars. Expect many more acquisitions to come.

So private equity is a hot topic and some mid-tier firms are interested but…

Close to two-thirds of respondents (62%) said that PE was “not [or] not at all attractive” to their firm. Furthermore, 17% of respondents saw remaining independent as an opportunity.

This is a valid concern. While firms appear to be getting around independence requirements by creative restructuring of their firms and quarantining off their audit practices, it’s certainly something to be cognizant of. SEC Chief Accountant Paul Munter directly flagged independence concerns related to PE deals in a recent statement:

Audit firms have also sought investments from third parties, such as private equity firms, that have not been subject to the same independence and ethical responsibilities as auditors. Depending on how those investments are structured, they could lead the firm’s professionals to question the firm’s commitment to both independence and high-quality audits. Firm leaders need to be sensitive to the message such arrangements could send and stand ready to correct any such misimpressions.

Calling it now, at least one of these PE’d-up firms is going to catch a fat independence violation within the next two or three years because they got sloppy about their post-PE restructuring.

Some visuals from the ICAEW because we love pictures:

We predict that chart will look very different two years from now as the “not attractive at all” crowd watches their competitors grow their practices in ways that wouldn’t be possible on billable hours alone. The “Not attractive at all” column will shrink but that won’t necessarily mean large numbers of firms start jumping into PE. They’re comprised of risk-averse accountants after all.

That said, many firms in the ICAEW survey are understandably concerned that PE will do a Red Lobster on their firm. It’s rumored — rather, people with eyes and brains are postulating — that Grant Thornton’s recent layoff of 350 people is due to PE-related housekeeping. No doubt more PE-aligned firms will be trimming fat as their investors seek ways to streamline the business. Firms that are already a hot mess will be gutted and sold off in parts.

And there’s another concern: the personal touch. It’s the family-owned grocer versus Wal-Mart.

Conversely, maintaining independence may support firms in upholding their unique identity, values and client approach, which some firms believe could be jeopardised under external ownership. More than one-fifth of respondents (21%) described the culture of their firm as ‘family-like’, and a further 17% as ‘traditional’, which may not be seen as a natural fit for PE investment. One respondent suggested that there were already “disgruntled clients” unhappy with accountancy firms taking on PE investment, and that remaining independent was an opportunity for their firm.

So this is interesting. When news of EY splitting its audit and consulting practices hit the news, we saw their competitors championing their “multidisciplinary private partnership model” as superior to the chopped up service lines EY was debating. See: Deloitte Global CEO Joe Ucuzoglu Just Mic Dropped EY’s Messy Split Drama and PwC Plans to Poach Unhappy Senior Managers From EY. In both of the linked examples, EY’s direct competition was quick to plant a seed in clients’ minds that their way of doing business was superior to what EY would have going after the split. We should expect to see similar behavior with non-PE firms versus PE-funded ones.

Brace yourselves for a bunch of corny “wE’rE a FaMiLy” marketing from firms that are morally opposed to private equity investment.

OK, but there’s another concern at these firms. While private equity is touted as a band-aid solution to the talent shortage (theoretically, private equity cash can help fund better salaries and efficient technology), some firms think it is more con than pro.

Comments from those looking to remain independent highlighted a sentiment that a PE model did not value people in the same way as traditional partnership structures. One respondent stated that staying away from PE was an “opportunity to recruit good staff that PE-backed firms underappreciate”. Another cited their firm’s desire to: “…retain a ‘traditional’ people-focused practice model which, in the light of increased private equity involvement in other practices, may make us more attractive.”

We have no doubt this will be the case. The public accounting model is shitty enough already without adding another layer of profit bloodletting to it.

A third respondent said: “We remain a privately owned network of businesses. [We see an] opportunity to attract other like-minded firms who wish to avoid PE funding and all that goes with that.”

Again, can totally see that. Aspiring retirees with their practices on the market may prioritize a culture match over a quick sale. Depends on how desperate they are to cash out I suppose.

Choice quote from this section:

Oh fuck off, firms can afford outsourcing without PE. That’s the whole point of doing it, you scrub.

This article is already long enough so we’ll stop here and hit part two on talent and technology tomorrow.

The post Here’s How Mid-Tier Accounting Firms Are Feeling About Private Equity and M&A appeared first on Going Concern.

Based in Massachusetts, Rinke has more than two decades of international tax experience, notably involving cross-border transactional and operational planning for multinational corporations. His diverse industry experience includes pharmaceutical, biotech, manufacturing, chemicals, semiconductors, retail, and finance.

As you can see, he’s thrilled to be opening this next chapter in his esteemed professional career.

The rest of the news release is the usual fluff meant to flaunt their new recruit’s wealth of experience to current and prospective clients. “Rinke is focused on providing strategic guidance that helps clients address changing macroeconomic conditions, reconfigure operational profiles to improve business sustainability, and navigate complex global tax laws and regulations.” We get it, he’s good.

PwC isn’t specifically mentioned in the press release (“a Big 4 firm”) because that would be tacky. They do, however, drop other names:

He earned a JD, cum laude, from Syracuse University School of Law; an LLM in Taxation from Georgetown University School of Law; and a BA in Philosophy, cum laude, from Minnesota State University Moorhead.

Going by Daniel Rinke’s LinkedIn experience, it’s unclear if this was an outright robbery. Usually when someone is unhappy at their current firm and leaves for another, they align their leaving and starting dates to reflect a direct jump which he has not.

Hilarious. Did a year as associate at KPMG and was like nah, I’m outta here. Good for you, Dan.

Best of luck to him in the new gig. That’s not sarcastic.

Rinke joins CohnReznick as International Tax Principal [CohnReznick]

The post CohnReznick Snags a Longtime PwC International Tax Guy and Issues a Press Release appeared first on Going Concern.

As for how it went down:

Meetings were added to people’s calendars late Thursday evening.

Friday rolls around and:

Comment
by from discussion
inAccounting

Classy, Crowe. As far as we know not everyone was on a single call, some laid off staff had one-on-ones.

The firm states it has “more than 5,000 specialists delivering exceptional client service in offices across the US,” three percent of that would be 150 people. Their Fortune Great Place to Work page — they came in #32 on this year’s list — says the exact number is 5,121. 4,921 now.

One commenter here says the OG partners at Crowe aren’t bringing in business leading to too many people twiddling their thumbs at the bottom rungs of the ladder. “There are older partners who are just dead weight, not selling anymore, but they keep getting the big K-1,” they wrote. “Not long ago they were hiring like crazy and appears overhired at this point. But some staff with low hours is driven by the fact the partners aren’t selling work. Plus this firm has created such a soft culture, with too much emphasis on DEI. It’s crazy that there’s no change in leadership at the top. They’re going to pin it all on underperforming staff and the market, which is some of it, but there are real leadership issues at this firm.” As of 2022, the firm had almost 500 partners (source).

As for how the firm is doing, Crowe hit the billion dollar revenue mark for the first time in 2022 and saw $1.3 billion in revenue for the fiscal year ending March 31, 2023.

The post Layoff Watch ’24: Crowe Cut Some People on Friday, Here’s What We Know appeared first on Going Concern.

The press release reveals a clue to Baker Tilly’s big plan: get in on that sweet Bay Area tech money.

This move represents Baker Tilly’s commitment to expanding its footprint in the San Francisco Bay Area, reinforcing its dedication to delivering unparalleled service to family offices and ultra-high-net-worth clients.

With a 65-year legacy, Seiler has established itself as an iconic advisory, tax and accounting services provider with deep roots in the Silicon Valley and the San Francisco Bay Area. Seiler’s reputable work serving ultra-high-net-worth individuals, families, closely held enterprises and non-profit organizations across the country strengthens Baker Tilly’s expertise in this space and its dedication to delivering tailored solutions and fostering enduring client relationships. Seiler’s legacy speaks volumes about its expertise and influence, making it a natural choice for Baker Tilly as it seeks to bolster its Bay Area presence and capabilities.

“The Bay Area market is a major business incubator on the West Coast and an international connection point,” said Baker Tilly Bay Area Managing Partner Lynette Stolarzyk. “Our combination with Seiler will enable us to continue growing and injecting innovation, value creation and an elevated customer experience in this pivotal market.”

The deal will involve some personnel changes. Seiler CEO George Marinos will become Baker Tilly’s Regional Tax Leader – Western U.S., succeeding Gabe Torre who will step into the role of Managing Partner – Western U.S. That means current Western MP Steve Milner (“with an illustrious 35-year career at Baker Tilly and Squar Milner,” the press release adds) will retire. Seiler Partner Ron LaVelle will be Baker Tilly Private Wealth practice leader.

We’ve been hearing rumors of some other personnel changes at Baker Tilly that won’t be making press releases if you catch our drift. If you happen to know anything about that, get in touch by text or email (anonymous, always).

Baker Tilly strengthens Bay Area presence with Seiler acquisition [Baker Tilly]

The post Flush With PE Cash, Baker Tilly Buys the Bay Area’s Seiler appeared first on Going Concern.

This year, they only narrowly beat out Deloitte again.

Plante Moran and Deloitte climbed from 16 and 17 (respectively) on last year’s list where they were also close neighbors.

Other accounting firms on the list sorted by descending order with last year’s rank in parentheses are:

• #22: PwC (30)
• #32: Crowe (60)
• #44: RSM (42)
• #54: Ryan (56)
• #64: EY (50)
• #72: KPMG (38)

So Deloitte stayed in the top 20, PwC climbed a few spots up from #30 last year, EY tumbled 14 places to #64 and KPMG…well.

Full list and company profiles here.

The post Mid-Tier Firms Are Kicking Big 4’s Ass on Fortune’s 2024 Best Companies to Work For List appeared first on Going Concern.

Of note, and barely mentioned in the press release, is Edwards’ prior gig:

Edwards joins Crowe from EY, where he began his career and most recently served as Americas, Consumer Industry Supply Chain Leader. In addition to his work with EY, he also served as a senior leader of supply chain improvement with General Mills. Edwards received his BBA from the University of Notre Dame and an MBA from Indiana University.

His LinkedIn is conveniently linked in the announcement:

Wow, that’s a direct yoink from EY. Nice.

“I am thrilled to join Crowe, a firm with an impeccable reputation built on culture and values,” Edwards allegedly said. “Every interaction I’ve had with people in the firm has demonstrated that the reputation they’ve earned is well founded and very real.”

Crowe LLP names Mike Edwards new managing principal of its consulting business [PR Newswire]

The post Crowe Poaches Someone From EY and Issues a Press Release appeared first on Going Concern.

That’s it, that’s the story.

Accounting firm FORVIS moves to top floor of PNC Tower in downtown Louisville [WHAS]

The post FORVIS Shows Off Its New Office In Loo-Ville appeared first on Going Concern.

The survey found that partnership on average remains overwhelmingly male. The current survey shows little change from studies done in years past, which have typically found less than one-quarter of the partnership ranks made up of women.

That “overwhelmingly male” breakdown is 78%/22% for men and women. The survey drills down further by firm size:

This does compare well to the previous survey in 2015:

These numbers were little changed from the 2015 survey results, when women represented 20% of partners at the largest firms, 27% at firms with 21 to 99 CPAs, 39% at firms with 11 to 20 CPAs, and 43% at firms with 2 to 10.

Yes, you’re reading those numbers correctly; the numbers from 2017 are largely worse than those from 2015. These trends are even worse when you consider the disparity of equity partners within these firms as well:

As you can see, and as the report states, the larger the firm, the greater the gap. Also of note, the survey cites another study, the PCPS/CPA.com National Management of an Accounting Practice (MAP) survey, that found that parity between men and women existed at nearly every level of a traditional firm, from associate to non-equity partner/director. However, that parity craters at the equity level. Perhaps in a few years, the numbers will start to spill over into the partner ranks, but nothing in the report suggests that’s what’s about to happen.

Gail Perry is a member of the WIEC and she says that while “there always seems to be disappointment that there aren’t more women partners,” she’s “not sure it is supposed to be equal” at the partner level. “Our society pressures men to be the breadwinners,” and “to fight for those leadership positions,” otherwise “they’re seen as failures,” she says. “The same pressure doesn’t exist for women.”

The pressure for women is different, however, most notably “to have it all” (even CEOs of Big 4 firms). This implies having a successful career of some measure, but also keeping family a high priority. When Dad misses a soccer game, no one bats an eye, but if Mom does, that’s when society considers her a failure.

Study after study has found that businesses perform better with more women in leadership positions. With a bigger pool of resources (i.e., including more women) the chances of success are that much greater. And yet the gender diversity — diversity, period — at the top of the accounting profession remains elusive.

[2017 CPA Gender Firm Survey]

Earlier: Here’s Another Lousy Stat on the Number of Women Partners in Accounting Firms

Image: iStock/Ryzhi

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