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.

The obligatory press release:

Dignari’s 300-strong workforce utilizes innovation at scale and data-driven strategies to advise US government clients. Since 2013, the company has been driving successful program implementations, designing high-impact solutions that maximize effectiveness, prototyping emerging technologies and using data science to improve performance measurement.

“We are excited about welcoming the world-class Dignari team to the EY Government & Public Sector practice,” said Doree Keating, EY Americas Government & Public Sector Leader. “We believe that blending EY US’s commitment to provide customers with mission-ready solutions and Dignari’s IAM capabilities in the homeland security space will offer a highly differentiated value proposition for our government clients.”

“For over a decade, Dignari has made a significant impact on furthering the federal government’s security mission with modern technologies,” said Gena Alexa, Dignari Founder and Chief Executive Officer. “These efforts can be scaled across local and state governments as well — and when combined with the power of the EY network will strengthen outcomes for both the public sector and the people it serves.”

Dignari salaries from Indeed if anyone’s curious.

According to the 2023 Top 100 Contractors report (the Excel sheet can be found here from SAM.gov) that lists the top 100 vendors for the US Government by dollars obligated each fiscal year, Deloitte ranks #26 with $3,711,875,824.60 obligated. Big D holds the distinction of being the only Big 4 firm on the list, ahead of Accenture at #34 but unsurprisingly behind Booz Allen Hamilton at #16. As Trump fans are currently beefing with Deloitte and calling for their government contracts to get cancelled faster than a B-list comedian tweeting on Ambien, now seems like a great time for the other firms to make big moves in what has historically been a space Deloitte dominates.

The Department of Defense is by far EY’s biggest government client according to data on USASpending.gov. For FY23, EY received $312,906,294 in DOD obligations. The next largest obligation amount is the General Services Administration (GSA) with a comparatively tiny $37,306,035.

Security powerhouse Dignari joins EY to accelerate mission enablement across the public sector [EY]

The post EY’s Growing Its Public Sector Practice With a New Acquisition appeared first on Going Concern.

Grant Thornton Ireland and Grant Thornton US are to merge their advisory and tax businesses, in a deal backed by New York private equity firm New Mountain Capital.

New Mountain Capital is the same private equity firm that took a majority state in our GT in March.

The GT Ireland business has about 2,800 staff, which includes 72 partners. As always with these kinds of deals, the audit side will remain its own thing.

Talk had been that GT US wanted to merge with Grant Thorntons UK and Ireland both, no word on what happened with the other half of that potential tie-up.

Grant Thornton Ireland and US firm to merge non-audit businesses [Irish Times]

The post Grant Thornton Merges With Grant Thornton 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.

Here are the details:

Sequoia Financial Group, LLC (Sequoia Financial), an SEC-registered wealth manager with more than $19.3 billion in assets under management as of June 30, 2024, and Eide Bailly LLP, a top 20 national accounting firm, today announced a strategic partnership, with Sequoia Financial acquiring Eide Bailly’s wealth management practice and both firms collaborating to deliver expanded services to each other’s clients.

As part of the agreement, Eide Bailly Advisors, LLC, an SEC-registered firm with approximately $1.58 billion in assets under management as of April 30, 2024, will become part of Sequoia Financial Group, and Eide Bailly will have an equity investment in Sequoia. The firms expect the transaction to close in the fourth quarter.

Headquartered in Fargo, North Dakota, Eide Bailly has over $700 million in annual revenue and more than 3,500 employees in 40 U.S. offices, with a major footprint in the western United States. Eide Bailly’s wealth management practice serves individuals, trusts, estates, pension and profit-sharing plans, businesses, and charitable organizations.

OK, we’re with you so far.

Through this partnership, Eide Bailly’s wealth management team will join Sequoia Financial, which includes Sequoia Sentinel, a multi-family office focused on high-net-worth clients with more than $25 million in assets. Brad Kelley, principal and wealth leader for Eide Bailly Advisors, will become an executive vice president of corporate development for Sequoia Financial, responsible for leading joint initiatives between the two firms.

So Sequoia Financial is acquiring Eide Bailly’s wealth management team and Eide Bailly has an equity investment in Sequoia. That’s a fresh new twist on professional services investments. Since the beginning of 2023, Sequoia Financial has made six acquisitions: Karpas Strategies, AltruVista, Zeke Capital Advisors, Cirrus Wealth Management, Affinia Financial Group, and M Capital Advisors.

There’s private equity money tangled up in here too. Sequoia Financial Group sold a minority stake worth $200 million to Valeas Capital Partners in 2022. Valeas Capital Partners is one of the two private equity groups that bought a majority stake in Baker Tilly worth a billion dollars in February; of that investment, $900 million is alleged to have come from the other private equity group in that transaction, Hellman & Friedman. Sequoia Financial is also backed by Kudu Investment Management and FGA Partners (Pitchbook deets here) though there’s no press release announcing the latter’s investment in Sequoia (if a sequoia falls in a forest of PE money with no one to hear it does it make a sound?).

Eide Bailly hasn’t made any PE deals that we’re aware of, surely there would be a press release and a bunch of people employed there saying on Reddit “I’m polishing up my resume right now!” if they had or are imminently about to. But let’s get back to this…deal.

“We have found a true partner with a strong cultural alignment and broad range of services and expertise to support the complex wealth planning needs of our accounting and business advisory clients,” said Jeremy Hauk, Eide Bailly’s CEO and managing partner. “Over many decades we have built deep relationships with our clients. With Sequoia Financial, a recognized leader in wealth management, we can significantly enhance our offerings and serve more clients.”

Wait, so is this a referral-type situation or…? Confused again.

“This partnership is a key strategic move that will expand our wealth management footprint meaningfully, especially west of the Mississippi River, where Eide Bailly has a large presence in major wealth markets,” said Tom Haught, Sequoia Financial’s CEO. “Equally important, both firms measure success by client success. Together, we will help more businesses and families achieve their financial goals.”

Whatever.

The post Eide Bailly Gets in Some Kind of Wealth Management Circlejerk, IDK appeared first on Going Concern.

KROST may not be a well known headline-grabber and they’ve only got about 100 professionals on staff but they’ve been around since 1939. The firm you’ve never heard of until now provides accounting, tax, and business consulting services mostly to the hospitality, technology, financial services, manufacturing, real estate, sports and entertainment, nonprofit sectors.

Both firms involved in this union were quite transparent about their reasons for joining forces.

“The profession is evolving,” said Paren Knadjian, Principal, M&A and Capital Markets at KROST. “To stay relevant and, more importantly, to continue to provide a wide array of evolving services to our clients, we need the additional expertise and capital that a firm like EisnerAmper can provide. We believe they are the ideal partner to help us achieve that goal.”

As you may remember, EisnerAmper was the first big firm to bring in private equity at a time when such a deal was considered revolutionary. That time was only three years ago, believe it or not. Since then, they’ve been busy gobbling up small firms.

With the KROST deal they’ll gain another foothold in the Southern California market (they merged in La Jolla’s Lindsay & Brownell in 2022). “It’s strategically critical that we expand our presence in America’s second largest city,” said Jay Weinstein, EisnerAmper Vice Chair of Industries and Markets. “And I can’t think of a better partner than KROST, which has maintained a standard of excellence for more than eight decades. We warmly welcome them to the EisnerAmper family.”

That’s all well and good but when are you gonna give us another FORVIS? Think big, Eisner.

Relevant r/accounting discussion: EisnerAmper was the first large accounting firm acquired by private equity, back in 2021. For those who have worked at Eisner, what changes have taken place since PE took over?

The post EisnerAmper Snags Itself Another Small Firm 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.

Financial Times is reporting that Grant Thornton US, now flush with all that private equity cash, is thinking about acquiring Grant Thorntons UK and Ireland. It all sounds very legit but who knows, just last week the rumor was that the Brit and Irish GTs were entertaining private equity capital for themselves. Supposedly.

FT:

Under the three-way merger plan, the current partners of the UK and Irish firms would become shareholders in an international holding company led by Grant Thornton’s US private equity owners and partners. Relative valuations of the firms had yet to be discussed and the UK and Irish firms could decide to pursue different deals or none, according to people familiar with the matter.

The UK firm has already hired Rothschild to explore options for its business. Bankers have begun seeking expressions of interest from private equity firms that could provide an alternative to a merger with the US firm.

More recently, Grant Thornton Ireland hired Deutsche Bank to begin a similar exploration of its options, said people familiar with the situation.

People familiar with the matter who have big mouths said all of this is in the early discussion stage.

So last week’s private equity rumor is starting to make more sense if there’s any truth to it. The Times said GT UK was working with advisers from Rothschild and “sounding out private equity firms over a potential deal.” When asked to comment on this, a spokesperson told The Times “As all businesses do, we continually evaluate the external business and economic landscape and explore various avenues that will drive growth for our firm. This enables us to make informed decisions about what’s best for our people, our clients and our firm. We are not actively engaged in any such transaction.” The GT Ireland spokesperson said basically the same thing: “In light of ongoing developments in our profession, we are constantly exploring strategic options to assess what is best for our clients, our people, and our firm.” Both firms gave a similar statement to FT for the latest story.

“Grant Thornton US believes that it can achieve significant synergies by combining the remaining consulting and tax businesses with those of the UK and Irish firms, according to people familiar with its thinking,” said FT.

The word “DYNAMIC” does not appear a single time in the Financial Times story.

The post Grant Thornton Wants to Have a Threesome? 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.

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.

Bain Capital’s PR people announced this morning that BC is putting $250 million into Top 30 firm Sikich (which we always want to type out as Sickish), an investment only slightly less than the Naperville, Illinois firm’s last reported revenue of $316,397,417 (per the IPA Top 500). That’s quite the growth bet.

Sikich will maintain majority control.

The press release is everything you’d expect it to be and more:

Founded in 1982, Sikich has been on a path of rapid growth under the leadership of [CEO Christopher] Geier, who assumed the CEO role in 2017. During this time, Sikich has grown revenue nearly 300% and expanded its geographic reach, now serving clients in all major U.S. markets and around the world with nearly 2,000 employees.

“This is an incredibly exciting time for our organization. We’ve been executing an ambitious growth and diversification strategy to capitalize on unique and favorable market conditions within an evolving professional services landscape, more than doubling in size over the last five years alone,” said Mr. Geier. “Partnering with a leading global investor like Bain Capital is a testament to our strategy and provides us with additional meaningful resources and extensive knowledge to advance our mission and deliver on our value proposition to employees and clients.”

Bain Capital Special Situations partner Cristian Jitianu had nice things to say, too. Particularly about the firm’s supreme leader. “We have watched Sikich thrive under Chris and his talented team’s leadership as they continue to set the industry standard across their leading accounting, technology and advisory solutions,” he said. “As competition for talent and clients remains high, Sikich’s differentiated business model has enabled the company to gain share in a fragmented market. We are excited to support Sikich’s continued growth strategy, focused on acquisitions and strategic partnerships, with a tailored structure that maximizes value creation while allowing Sikich to retain majority control of the business.”

Oh my God, it keeps going.

“Bain Capital has already proven to be a collaborative and solutions-oriented partner, confirming what we know to be a great cultural fit between our two organizations,” added Mr. Geier. “We’ve held firm to our vision for Sikich over the last several years and, with their support, I am confident in this next chapter of our journey and what we can accomplish.”

Sickish Sikich has been on quite the acquisition spree in recent years. Just a few highlights from their press releases:

Sikich acquires human resources technology consulting business – Sikich LLP

Sikich grows Chicago-area presence with acquisition of accounting practice – Sikich LLP

Sikich expands accounting, tax and audit team with acquisition – Sikich LLP

Sikich expands into Washington, D.C., area with acquisition – Sikich LLP

Sikich expands presence in Milwaukee market with acquisition – Sikich LLP

Sikich boosts advisory services with acquistion – Sikich LLP

Sikich expands in St. Louis with acquisition of Hochschild, Bloom & Company – Sikich LLP

Sikich expands central Illinois presence with acquisition of Heinold Banwart – Sikich LLP

Sikich expands digital transformation services with acquisition of quality management and insurtech consultancy – Sikich LLP

Sikich adds to accounting practice with Stanfield – Sikich LLP

Sikich LLP expands into Southern California – Sikich LLP

The most recent for them appears to be buying up CliftonLarsonAllen’s federal government practice in DC. The whole thing including 70 employees and four principals. They first elbowed their way into Washington in 2019 when they bought Halt, Buzas & Powell. Three years later, they acquired Cotton & Company.

Sikich fed government partner Steven Koons gives them 5 stars.

Time for Sikich to snag themselves a big fish instead of these firms no one’s heard of. We’re watching with great interest, so much so we’re adding a “Sikich” tag for the first time in the 15 years since this website was founded. Don’t let us down.

Technology-Enabled Professional Services Firm Sikich Secures $250 Million Minority Growth Investment from Bain Capital [Bain Capital]

The post Sikich Is the Latest Firm to Take an Outside Capital Injection appeared first on Going Concern.

Drew Andrews, managing partner and CEO of Hartford-based accounting and consulting firm Whittlesey, said the main factor driving mergers is the significant number of smaller firms with aging partners who are looking toward retirement, but don’t have the “backup” on staff to fill their shoes.

Michael Sabol, a founding partner at MahoneySabol, said a recent survey by consulting firm Rosenberg Associates found 25% of all partners are over the age of 60, and 60% are over the age of 50.

Andrews said mergers have always been an industry option, but 10 years ago, it was more of a seller’s market. Today, it’s more of a buyer’s market. “There are probably 10 firms out there for every two people looking to buy,” he said.

The article also notes that the UConn School of Business accounting program has seen its enrollment drop from a peak of 160 in 2017 to 90 last fall, a decrease of 43.75%.

Sounds like a great time to pick up an accounting firm or two at bargain basement prices.

Earlier:

The post The Old Guys Want to Cash Out appeared first on Going Concern.

Fresh off the rumor mill via the tip box:

Forvis, in its laughable quest for global domination (WE DONT WANT TO BE THE BIG 4), is going to announce another merger/acquisition this week, presumably to leapfrog GT and BDO in the Americas or establish significant footing overseas.

FORV/S (ugh why’d I type that) currently sits at #8 on the IPA Top 100 with $1.7 billion in revenue. BDO and GT are at #6 and #7 with $2.8 billion and $2.3 billion in revenue, respectively. Going by the IPA numbers that means a $1.1  billion difference between FORVIS and BDO, merging with any of the top 9-15 firms would get them there by next year. Those firms are:

Well we can immediately disqualify CLA — our tipster did — for a few reasons (and not our tipster’s reason of FORVIS having no respect for them): After identifying a few cases of CLA declining reappointment as auditor for some clients, we confirmed CLA is 100% pulling out of the public company audit game along with a few other mid-tiers. FORVIS picked a few of these clients up (that we know of, probably more) so it makes no sense that they’d end up back where they were. CLA CEO Jen Leary also said this in a recent Bloomberg Tax interview:

With no new acquisitions on the horizon, Leary said she is focused on improving the value of the enterprise for the next generation of CLA owners. Partnering with private equity, as other firms have done, isn’t in the cards. “We don’t need outside capital,” she said.

Our tipster seems to think the merger will be an international one. This June 2023 Charlotte Business Journal profile on post-merger DHG and BKD plans seems to back that up:

The first name that comes to mind when one thinks about international firms is Mazars but that “would be shocking,” said our tipster. Mazars USA (IPA 100 #31, $258 million in revenue) and Le Mazars are both fellow members of the Praxity alliance Forvis is in, as are Moss Adams and Plante Moran. The bulk of Praxity firms are overseas (to us) excepting Toronto’s MNP which requires no sea travel to get to from Springfield, Missouri.

If you remember, we’ve been through this before with FORVIS (before there was a FORVIS). In February 2022 a tipster told us two big Praxity firms were about to announce a merger. At that time, we had these to choose from:

• Aronson
• BKD
• Dixon Hughes Goodman
• Kaufman Rossin
• Mazars USA
• Moss Adams
• Plante Moran

We of course know now that it was BKD and DHG that combined forces to become the horribly named FORVIS. BKD and DHG were in the 14th and 17th spots (respectively) on the IPA 100 in 2021, the FORVIS merger bumped them up together to #8 in 2022.

Our tipster suggests that if it is a US firm, that firm will be Moss Adams though it seems unlikely. We’re told there should be an internal announcement this week, hopefully we haven’t totally ruined it with this post.

Speculate away and let’s get the jump on offering GOOD possible post-merger name ideas to prevent another FORVIS ok?

Update (11.14): First off, you people in the comments are wild. Thanks for that. Can you all please pick a commenter name though? All the Anonymice are confusing.

As some suspected, the FORVIS merger is a union with Mazars. Here’s the kicker — we’re told FORVIS will be “absorbing” Mazars USA (IPA Top 100 #31, $258 million in revenue) and merging but not merging with the real Mazars (revenue €2.45 billion, approximately $2.7 billion USD). Once things are official on June 1, 2024 the firms will operate as FORVIS Mazars (wasn’t it hard enough to explain what “FORVIS” means to Americans??) and eventually drop the Mazars after 18 months, per our tipster.

The official announcement should be dropped tomorrow, November 15 in an 8am webcast. [Ed. note: *to employees. Someone in the comments seemed to think this was to be a public one]

One other thing of note, it’s our understanding that this play has been in the works at least since the DHG/BKD merger and that the creation of FORVIS was just one step in a three-year plan. It sounds like FORVIS will be setting its sights on new markets as soon as the ink is dry on the Mazars deal. Finally, we understand what they meant by FORWARD VISION. More on that later.

Update (11.15): Financial Times published a story this morning.

The post There Might Be a Big Merger in the Works For FORVIS (UPDATE) appeared first on Going Concern.

After the deal, one of the largest such combination deals in the region, Deloitte will have 28 partners and 800 people, a person with direct knowledge of the matter said.

PwC’s Sri Lanka and Maldives firms will join Deloitte with effect from Oct. 28, the memo said.

In the memo, Deloitte South Asia CEO Romal Shetty said the deal is “a transformative chapter in our history and marks a strategic leap forward.” Earlier this year, Shetty said Deloitte plans to have around 30% of its workforce operating from India within the next four years. The PwC deal will further expand Deloitte’s foothold in the region and open the door for Deloitte to diversify away from mostly audit services and into advisory and particularly technology consulting.

A Deloitte spokesperson confirmed the transaction but did not provide any details. On the PwC side, Reuters reviewed a memo sent to clients that said the soon-to-be ex-PwC network firms are “committed to effecting a seamless transition as we prepare to join Deloitte.”

The deal will make Deloitte the second largest professional services firm in Sri Lanka, the first largest being — brace yourself — KPMG (according to Reuters’ source, anyway).

The post Deloitte Is Taking PwC’s Sloppy Seconds in South Asia to Get Into Technology Consulting appeared first on Going Concern.

The 259th Largest Accounting Firm Is Paying For Unlicensed Staff to Pursue a Master’s at the 87th Best Online Business School

More than 90 Clayton & McKervey shareholders and associates will join Wipfli (revenue of $506.7 million), bringing the headcount to about 3,300. Clayton & McKervey also brings with it more than 2,000 clients. Shout-out to whoever wrote this press release for not using “leading firm” in the press release, that phrase has lost all value due to following firms constantly abusing it in their own press releases.

Speaking of press releases, here’s some of it:

Clayton & McKervey is a full-service public accounting firm, providing tax, audit, digital advisory and business consulting to domestic and foreign clients.

The Clayton & McKervey team will bring to Wipfli its proven experience in the automotive and technology sector; specifically in the manufacturing and distribution, industrial automation and architecture and engineering industries, among others. Clayton & McKervey has a special focus helping closely held domestic and international companies compete in the global marketplace. Our combined businesses will allow us to bring additional value to the clients we serve.

Clayton & McKervey is well known for helping foreign-owned companies expand to the U.S. and helps domestic entities expand abroad. Their reach is significant: including North America, Europe, South America, Asia, Australia and the United Kingdom.

Wipfli offers Clayton & McKervey clients full-service tax and financial solutions as well as the benefits of expanded services that help businesses improve organizational performance, coach their executives and teams, transform their digital capabilities, optimize finances and drive decisions with data and analytics.

Then comes the usual “client service” nonsense, blah blah, quotes quotes. “We are looking forward to Clayton & McKervey joining our firm,” said Kurt Gresens, Wipfli’s managing partner. “Their strong reputation and business approach in accounting, audit, tax and consulting will be a great fit at Wipfli. Their deep bench in helping startups and multinational companies based in the U.S. and abroad will help us connect with a broader client base, enabling us to introduce a larger range of consulting services including digital, cybersecurity, cloud computing and outsourced accounting services. Working together, we’ll be well-positioned to support them.” Presumably when he says “deep bench” he means plenty of talent and not an excess of talent sitting around twiddling their thumbs.

The merger was of course advised by Allan D. Koltin, CEO of Koltin Consulting Group, the Patti Stanger of the accounting profession (minus the problematic comments). “Clayton & McKervey was sought after by numerous suiters but selected Wipfli for the culture connections and strategic fit with middle-market and high-net-worth clients,” he said. “They also saw huge growth opportunities for their younger talent and leaders.”

With combined revenues of 522.7 million between the two firms, Wipfli might just unseat #19 Eide Bailly next year. Funny enough, Wipfli and Eide Bailly almost merged a decade ago, ultimately a disagreement on “key terms” sabotaged that deal.

The Wipfli/Clayton & McKervey transaction takes effect on September 1. And now that makes two times in 14 years we’ve written about Clayton & McKervey. Moving up in the world!

The post The 259th Largest Accounting Firm Just Skipped the Line to Number 20 With Wipfli Merger appeared first on Going Concern.

Baker Tilly’s new CEO Jeff Ferro says the company will continue its highly acquisitive streak, expanding into new markets in the Southeast and beefing up its presence in major metros after the abrupt departure of its former CEO Alan Whitman in March.

Ferro, who has committed to a two-year term as interim CEO during an executive search, told Bloomberg Tax that Baker Tilly aims to solidify its presence in Florida and Georgia, and “double down” in major metro areas like New York, San Francisco, and Los Angeles. Potential mergers with “four or five” other firms have been discussed with senior leadership, he said. The firm also plans on executing its “break the mold” strategy hatched under Whitman, implementing programs like placing new hires in an innovation lab to cull suggested changes and improvements.

Side note: “placing new hires in an innovation lab to cull suggested changes and improvements” sounds like some kind of torture chamber where they force new hires to say brutally honest things about the firm under threat of waterboarding. Let’s hope they film it and put it on YouTube.

Anyway, given that Jeff Ferro “has guided several successful acquisitions by Baker Tilly” per his bio, one has to wonder if Alan was standing in the way of these big fancy mergers I was sure were coming down the pipe and the interim CEO…isn’t? Another Bloomberg Tax piece says that Whitman resigned after he disagreed “with the firm’s other top leaders on how to advance an aggressive and unique business strategy,” and that he aligned with the BT board on strategy but not execution. Take from that what you will.

Baker Tilly has been making moves. Big, obvious, expensive moves. A flashy merger would be a great culmination of those moves.

But then the question is: with whom? CLA? That would make a firm with a combined revenue of $2.8 billion, knocking BDO out of 6th place (per INSIDE Public Accounting Top 500 data). But then CLA is another Midwest-y firm and that wouldn’t align with getting a foothold outside of Chicago.

No, it’ll be something way less flashy than that. Here are Baker Tilly’s last five acquisitions, in descending chronological order:

ACG (Bay Area)
Henry+Horne (Arizona)
True Partners Consulting
Management Partners
Bader Martin (Seattle)

Will Baker Tilly’s next acquisitions be flashier than Bader Martin’s $20 million in revenue? Or Henry+Horne’s $34 million? Probably. How much flashier is the question.

Speaking of flashy, there was also the acquisition of Squar Milner ($130 million in revenue) in 2020 which pushed Baker Tilly into the top ten.

Whatever it is, I hope it’s a name we recognize. There are a lot of firms up for grabs right now and a lot of talent problems that can be soothed by merging in already-hired talent. Keep an eye on this Jeff dude, he’s making moves. Oh and if you hear any merger buzz, do get in touch.

The post Baker Tilly Will Be Making Moves appeared first on Going Concern.

Accounting firm merger madness continues, this time the union of Citrin Cooperman and Berdon announced on the 1st. We should have seen it coming as Citrin Cooperman has been busy the last 15 months, growing revenue by $200 million and completing several mergers since private equity firm New Mountain Capital acquired a majority interest in the firm last year.

Going off INSIDE Public Accounting Top 100 data, the union of #24 Citrin Cooperman ($351,776,000 in revenue) and #47 Berdon ($132,500,000) makes a combined force that could bump EisnerAmper out of the 17th spot on the IPA Top 100.

Press release:

Citrin Cooperman Advisors LLC (“Citrin Cooperman”), one of the largest and fastest growing professional services firms in the United States, announced today that they have completed their acquisition of the nonattest business of New York accounting, tax, and consulting firm, Berdon LLP (“Berdon”). With the addition of Berdon’s $110 million in revenue and 450 partners and associates, the combined firm anticipates annual revenue will exceed $600 million, handled by a team of over 2,400 professionals. The combination of the two firms will expand capabilities in their shared core industries including real estate, construction, family office, and manufacturing and distribution while providing and expanding a deep roster of consulting and advisory services for their combined clients.

“This is the combination of what we think are two of the strongest firms in the country,” said Citrin Cooperman Executive Chairman Joel Cooperman and Chief Executive Officer Alan Badey in a joint statement. “We have long admired Berdon and their well-earned reputation for client service and technical expertise. Our values, cultures, and industry niches align perfectly with each other, and we look forward to working closely with the Berdon team.”

Berdon Co-Managing Partners Mark Bosswick and Stuart Kotler shared similar sentiments, “Our team is incredibly excited to be joining Citrin Cooperman and that excitement stems from the clear synergies we see between our two firms and from the fact that we will now be able to offer our clients and personnel a wider array of resources and offerings.” Bosswick will become Citrin Cooperman’s New York Metro Managing Partner and a member of the company’s Board of Managers. Kotler will continue to serve as the managing partner of Berdon, which will continue to provide attest services to its clients and operate in an alternative practice structure with Citrin Cooperman.

Andre Moura, managing director of New Mountain Capital, which acquired a controlling interest in Citrin Cooperman in October of 2021, said; “The combination with Berdon represents an important milestone in New Mountain’s strategic growth partnership with Citrin Cooperman. Berdon brings a unique expertise and a strong reputation in the market and the combined firm will have greater technical capabilities, technology, and scale to better serve its clients. New Mountain Capital is excited to work with Citrin Cooperman as the firm continues its growth trajectory.”

Berdon marks Citrin Cooperman’s tenth transaction in the past 15 months, growing their revenue by over $200m and establishing new offices in Chicago, Miami and Beverly Hills. Allan Koltin, CEO of Koltin Consulting Group, Inc., and an advisor to both groups on the combination, commented, “Berdon was sought after by almost every major CPA and advisory firm in the country but chose Citrin Cooperman as the best strategic and cultural fit. Berdon’s leadership saw great growth opportunities for their talent and increased abilities to provide expanded depth and resources for their clients. Citrin Cooperman’s relationship with New Mountain Capital is transforming an already great firm into an amazing ‘firm of the future’. Their combined strategy is a rather simple one – grow your people, grow your clients, and everything else will follow.”

Effective today, Berdon’s nonattest business is a wholly owned subsidiary of Citrin Cooperman.

Hope you guys aren’t sick of hearing about mergers, we just heard about another big one that should be announced very soon.

The post Berdon Got a Lot of Dates But Ultimately Chose to Hook Up With Citrin Cooperman appeared first on Going Concern.

Across the pond, Accountancy Age says firms are looking to mergers to solve their talent problems. Why look for talent that might not exist when you can just absorb someone else’s? Kinda genius really.

Meanwhile, the UK accountancy M&A market has gathered significant pace, with consolidation soaring in recent months – a trend that some believe is driven by ongoing skills shortages in the sector.

Alongside more conventional ambitions such as regional and commercial growth, a key motive for acquirers is the absorption of a new talent pool, according to James Gosling, head of M&A at AJ Chambers, a specialist in accountancy practice consolidation.

“The fight for talent is very tough at the moment. So, more often than ever, we’re seeing acquirers that, alongside looking to build the business, will be looking to acquire the smaller firm’s talent.”

This isn’t surprising. Along with non-traditional hires, raising fees, firing clients, and outsourcing, merging is a successful and accessible strategy for firms feeling the labor crunch.

The exasperated small firm owner who wrote in to us last week to lament their own talent difficulties mentioned the M word too:

I have been reading constantly about how the large firms are merging, paying more for top talent, taking people away from other firms, etc. due to the natures of the current accounting marketplace.

Off the top of our heads there have been two big accounting firm mergers in the past few months: Elliott Davis and Whitley Penn joining forces to become Elliott Penn [Ed. note: this “merger of equals” fell apart at the last minute in November 2022] and BKD hooked up with Dixon Hughes Goodman to become the spectacularly cringy FORVIS. Oops, we forgot Marcum and Friedman. And BPM has been busy on a merger streak since late 2020. Maybe there is something to this idea…

Speaking of mergers, did you guys know KPMG and EY almost merged in the 90s? It’s true, learn your accounting history. In the late 90s, clients were served by the prestigious Big 6 accounting firms (listed in descending order by revenue): Andersen, Ernst & Young, Deloitte & Touche, KPMG Peat Marwick, Coopers & Lybrand and Price Waterhouse. Check out these 1996 revenue numbers:

Andersen Worldwide: $4.5 billion ($8.5 billion today)
Ernst & Young: $3.6 billion
Deloitte & Touche: $2.9 billion
KPMG Peat Marwick: $2.3 billion
Coopers & Lybrand: $2.1 billion
Price Waterhouse: $2 billion

In September 1997, Coopers & Lybrand and Price Waterhouse clanned up to diss Lybrand and form Price WaterhouseCoopers. If you’ve ever wondered why there is a capital letter in the middle of WaterhouseCoopers well now you know. Not to be outdone by their smaller competitors, EY and KPMG — then Ernst & Young and KPMG Peat Marwick — decided they wanted in on this merger stuff and announced they too would be merging. Kinda sounds like your cousin announcing she’s pregnant at your baby shower tbh but whatever. The European Commission began an extended antitrust probe of the proposed merger and turned it into “a complete nightmare” according to a senior partner at EY who spoke to the LA Times in 1998. “When you added it all up, it was just going to take a lot of time, a lot of money and a lot of blood, sweat and tears,” they said. Four months after the big announcement, the regulatory complications got the best of the two firms and they decided not to merge after all. On top of that, a merger would have created a bunch of conflicts with clients and the two firms didn’t want to be arguing over whose juice the merged firm would keep.

Anyway, keep your eyes peeled. It would not be at all surprising to see several big mergers ahead. If anyone hears anything…you know who to call. In the meantime, anyone want to speculate wildly about who will be next?

The post Don’t Be Surprised to See Accounting Firms Aggressively Merging in the Next Year or Two appeared first on Going Concern.

This came through the tipline a little bit ago:

To be announced later today, two top 20 firms will merge and create a new top 10 firm.

Our tipster proceeded to give us a hint that narrowed the field down a bit:

It’s two praxity alliance firms.

The Praxity website has the following accounting firms as members:

• Aronson
• BKD
• Dixon Hughes Goodman
• Kaufman Rossin
• Mazars USA
• Moss Adams
• Plante Moran

Based on INSIDE Public Accounting’s most recent top 100 list of public accounting firms by revenue, we can take out Aronson, Kaufman Rossin, and Mazars as possible merger candidates, as each of those firms are outside of the top 20. That leaves BKD, DHG, Moss Adams, and Plante Moran.

Because our tipster works at BKD, we’re going to assume that BKD is the firm merging with either DHG, Moss Adams, or Plante Moran. We were told the announcement will be made at 2 p.m. CT today.

The 10th largest firm in the US currently is Crowe, with revenue of $925,856,000, according to IPA’s 2021 ranking of public accounting firms. BKD, the 14th largest firm, had revenue of $758,121,000. If BKD merged with either of Moss Adams (12th), Plante Moran (13th), or DHG (17th), in all three scenarios the combined firm’s revenues would be greater than Crowe’s.

We’ll keep you updated once the merger news breaks.

[UPDATE 1:] While we await the official announcement of which firm BKD is merging with, several sources have told me it is DHG. Will it be called BKDHG? Are they going to go old school and call it Baird, Kurtz, Dobson, Dixon, Hughes & Goodman? What’s going to happen to Ben and Kate? We’ll find out shortly.

[UPDATE 2:] It’s now official (told you so): BKD and DHG are hooking up. But according to a press release from BKD, the new name of the firm won’t be announced until a later date. Here is the full press release:

The leading accounting firms of BKD and DHG today jointly announced they have agreed to merge to create a new, Top-10, national professional services firm with $1.4 billion in revenue, setting the stage for a national growth strategy.

With complementary operations, geographies and nearly two centuries of legacy service between them, the two firms together will operate under a new firm name that will be announced at a later date. The new firm will provide deep industry focus, expanded advisory services, and outstanding career opportunities, building the foundation required for long-term growth and a stronger national presence with a gateway to global expansion. The merger of equals is expected to close in the second quarter of 2022, subject to the satisfaction of customary closing conditions.

Tom Watson, current CEO of BKD, will serve as the CEO of the new organization; and Matt Snow, current CEO of DHG, will serve as the Chair. The two industry leaders said the merger will create a firm that is primed for growth in the current business landscape.

“For years, both BKD and DHG have built strong reputations as high-value, professional client service firms,” said Watson. “We’ve established complementary geographic footprints and strong capabilities in a range of critical service sectors. Together, as one organization, we will deepen our bench strength even further, allowing us to continue to serve our existing client base while also providing the resources necessary to serve an ever-increasing upstream client base.”

Snow added that the strengths of the two companies will help clients better navigate the dynamic commercial landscape.

“I couldn’t be more thrilled to join forces with BKD. The scale of our combined firms, our collective talent and similar cultures will translate to tremendous benefits for our clients and team members,” said Snow. “Both of our firms have an overlapping industry focus in healthcare, financial services and private equity, coupled with other industry sectors where each legacy firm is individually strong. As one organization, we will be able to bring our capabilities to a broader range of clients, providing more innovative, client-centric services to the market.”

The new firm will have a significantly larger national presence, ranked number 8, allowing it to quickly pivot to new market opportunities as they arise and expand its reach. It will have more than 5,400 team members across 68 markets in 27 states, including the United Kingdom and the Cayman Islands. For clients, this brings greater opportunity for more onsite, personalized attention from professionals, regardless of location.

Key merger highlights are as follows.
Strategically Compelling for Both Organizations

• Builds a national firm with $1.4 billion in revenue, uniquely positioned to deliver outstanding opportunities for team members and clients.
• Merges two, well-established firms with strong operating histories spanning nearly 100 years.
• Positions the firm for continued growth, expanding the breadth of services available to each firm’s current client bases while deepening the resources required to serve larger private and Fortune 1000 advisory clients.
• Beneficial for Clients and Team Members
• Broadens geographic reach, placing experienced talent in several key markets to provide onsite services more efficiently.
• Builds scale in key industry areas and client service segments, creating synergies within existing industries and expanding the reach of others to a total of 10 national industry practices.
• Builds new career development opportunities across industry verticals and geographic locations.
• Improves national market recognition, supporting growth of non-audit related services to better serve clients, including those in the Fortune 1000.
• Positions the firm as a destination employer with a people-driven culture.

Feel free to speculate below on what the new BKD/DHG firm’s name will be.

The post Rumor: BKD Is Going to Merge With Either DHG, Moss Adams, or Plante Moran Today (CONFIRMED: BKD and DHG) appeared first on Going Concern.

A fairly big public accounting firm acquisition was announced earlier today, as top 11 firm CBIZ went shopping and picked up a Marks Paneth, ranked No. 43 in INSIDE Public Accounting’s top 100 firms list for 2021, reportedly for $81 million. With the acquisition, CBIZ is expected to gain an additional $138 million of revenue in 2022, which could put CBIZ right on Crowe’s heels for 10th spot in total accounting firm revenues.

According to this post on LinkedIn from Marks Paneth Managing Partner Abe Schlisselfed, the new firm will be creatively called …

CBIZ President and CEO Jerry Grisko was gushing about the transaction in an email he sent to staff today, in which he also thanked the world for making it happen.

A tipster send us Grisko’s email which said:

Team,

I am pleased to announce the acquisition of the non-attest business of Marks Paneth with Mayer Hoffman McCann (MHM) acquiring the attest business of the same firm.

Headquartered in New York City, Marks Paneth is ranked among the 50 largest accounting firms in the nation and in the top 10 for the mid-Atlantic region. With a team of over 600 professionals, Marks Paneth provides accounting, tax and advisory services to businesses across a diverse set of industries including real estate, construction, non-profit and manufacturing. In addition to their presence in New York City, Marks Paneth has offices in Long Island and Westchester, New York, Parsippany, New Jersey, Philadelphia, Pennsylvania, Boca Raton, Florida and Washington, D.C.

This is the largest transaction CBIZ has completed in our 25-year history. By joining forces with Marks Paneth, we will have the scale and capacity to provide a higher level of service to existing clients, compete for marquee clients across numerous industries and offer ever greater career opportunities for our team members. Beyond New York, Marks Paneth’s presence and reputation in Philadelphia and Boca Raton bolsters our existing offices and creates new opportunities for growth. Marks Paneth also has an office in Washington, DC, a new market for our Financial Services business.

Please join me in welcoming Abe Schlisselfeld, Senior Managing Director, and the Marks Paneth team to CBIZ. For more information, please view the transaction announcement here: CBIZ Acquires Marks Paneth.

I want to take this opportunity to thank Chris Spurio, President of Financial Services, Rick Mills, COO CBIZ MHM, Jeff Gluck, SMD FS New York, and Arianna Ehmer, Director of Operations along with our entire M&A team led by Matt Morelli, Senior Vice President, and including Brian Carey, Vice President, and Melanie Gilmour, Director of M&A and Integration, for their efforts to cultivate and complete this acquisition. The time, effort and energy required to secure an acquisition of this magnitude is significant especially after completing six important acquisitions last year. I would also like to thank our HR, Finance, Legal, Risk Management, Marketing and IT teams for all of their efforts to complete the transaction. I recognize this was a heavy lift during an already busy time of year.

Finally, I want to recognize Deb Sherman, Director of Compensation and Benefits, who is retiring from CBIZ after 20 years of service. Deb has been an integral part of our HR leadership team during her tenure and played a critical role in numerous acquisitions. Her sense of humor and tireless approach in guiding countless new team members through our benefits will be greatly missed. Please join me in thanking Deb and wishing her all the best in retirement!

Joining forces with Marks Paneth kicks off what we expect to be a busy year on the acquisition front and caps off the company’s remarkable performance in 2021.

Thank you all and happy New Year!

Jerry

One person who Grisko didn’t thank was deal broker extraordinaire Allan Koltin, but you just knew that:

• Koltin had his imprint on this deal; and
• He would have plenty to say about it.

MEGA-FIRMS COMBINE – CBIZ MHM, LLC and Marks Paneth LLP
In this acquisition, both CBIZ and Marks Paneth found a partner with unique strengths that are complementary to each other. @cpapracadvisor, Abe Schlisselfeld, CPA, EA, Jerry Grisko Jr. https://t.co/Z6YkhKszpY

— Allan D. Koltin (@AllanDKoltin) January 10, 2022

At least Allan stopped short of calling the CBIZ/Marks Paneth transaction “the biggest deal of the century” like he did a year ago when BDO USA and MBAF united in holy public accounting firm matrimony.

CBIZ acquires accounting firm Marks Paneth of New York for $81 million [Philadelphia Business Journal]

Related article:

Koltin Consulting Group CEO Is Really Overhyping This BDO USA/MBAF Merger

The post CBIZ CEO Slaps Everyone On the Back For a Job Well Done On Acquisition of Marks Paneth appeared first on Going Concern.

Per the press release:

TowerBrook’s significant capital infusion will help drive EisnerAmper’s long-term growth initiatives, which include accelerating the evolution of service offerings, investing considerably in talent and technology, and strategically expanding via organic growth and targeted mergers and acquisitions—all directed at exponentially enhancing client service.

We can safely extrapolate from this bit that Eisner understands it will take more than squeezing clients for every dime billable hours to compete in the ongoing (and escalating) talent war.

This news pretty much flew right by our radar because we’re usually too busy suspiciously eyeing creepy firm robots for the first sign of hostile human takeover and other such critical matters but a recent Reuters article about the investment caught my attention and I figured this item might be of note.

Before everyone gets excited, it’s not like accounting firms will become the next Bitcoin. But it does mean that we could see some truly interesting shake-ups in the years ahead. On the investor side, this is a win as they can avoid being on the receiving end of long screeds about why private equity is destroying [x] market (currently it’s housing) because no one over at Slate is going to make it their personal mission to excessively hand-wring over investment firms ruining accounting.

Back to that Reuters piece. In it, we learn that the Eisner deal is something that’s been in the works for longer than many of you have been in the profession, it just never panned out until now.

The deal is transformational and there are likely more to come, said Allan D. Koltin, CEO of Koltin Consulting Group and an advisor to accounting firms involved in many of the profession’s largest mergers and acquisitions. “Private equity has been trying to get into the accounting profession for 15 years,” Koltin said. “This journey started back in 2006 and, up until a few weeks ago, in the world of the Top 20 CPA firms it’s been unsuccessful.”

Market changes have created an unprecedented demand for capital among accounting firms — for technology, talent, and strategic acquisitions — that opened the door for this type of deal, Koltin explained.

“Firms are merging fast and furiously to expand geographically and to expand their products and services,” Koltin added. “As a result, there are more larger firms in our profession today than ever before. When you get to a point in your growth somewhere between $100 million and $200 million — it’s like [getting] a target on your back. You have to keep growing. This business is unforgiving. If you don’t continue to grow you can’t continue to recruit and retain great talent. They go somewhere else.”

In case reading between the lines isn’t your specialty, that last paragraph is a strong signal that firms are freaking out about this talent problem. We’ve known that, of course, but it’s yet another piece of evidence to file away in our binder of things that keep firm leaders up at night. And for all of you, this means that you are running this show, not the people who sign your paychecks.

Given that, we’ll be keeping an eye on this going forward.

Further reading:
Guest Article: Be Wary of Private Equity – Could Be the Devil With a Blue Dress On [INSIDE Public Accounting]
As M&A activity reshapes the tax & accounting profession, private equity takes a hand [Reuters]
EisnerAmper Announces Investment By TowerBrook Capital Partners [PR Newswire]

The post Private Equity Is Now Dipping Its Toes In Public Accounting Firms appeared first on Going Concern.

The Times in London wrote yesterday:

BDO, the accountancy and business advisory firm, has confirmed that it expects to merge with rival Moore Stephens as early as spring next year.

The transaction would mean BDO leapfrogging Grant Thornton to become the country’s fifth largest accountant by revenue. It comes during a transformative time for the audit market and could trigger a wave of consolidation in the sector.

The deal, which was first mooted four months ago, will add £135 million to BDO’s top line, bringing annual turnover to £590 million. Grant Thornton — currently the largest challenger to the Big Four firms, Deloitte, PWC, EY and KPMG — recorded revenue of £500 million in the UK last year.

Economia reported that the combined firm will take on the BDO brand, and have 264 partners and 5,000 total staff members.

The deal relates only to Moore Stephens LLP, consisting of the London, Birmingham, Reading, Bristol, and Watford offices of the current Moore Stephens U.K. network, Economia said. BDO plans to take on a second office in London to accommodate the growth.

The decision to possibly merge in Moore Stephens was a no-brainer for Bravo Delta Oscar, with both firms having “like-minded people who think we’re better off together,” BDO Managing Partner Paul Eagland told City A.M.

So, it sounds like BDO and Moore Stephens got to second base this summer, but things then got pretty hot and heavy:

What started as a summer crush quickly turned into something more serious: over a series of meetings earlier this year, the top brass at BDO and Moore Stephens soon realised they had a lot in common, and have spent a “very positive four months” figuring out ways of tying up since then. “We spoke about the change going through the market, we looked at each of our firms, it was just a fantastic bond,” said Eagland.

“Off the back of that, we then said: ‘Why don’t we sketch out what a combined force might look like?’”

Can you sketch out two accounting firms bumpin’ uglies? Ewww.

[T]he two companies saw that forming a stronger challenger firm would put them in pole [LOL!] position to reap the benefits of any improved competition, as the sector faces scrutiny from politicians and regulators aimed at disturbing the long-time dominance of Deloitte, EY, KPMG and PricewaterhouseCoopers.

Once the dust settles, Eagland expects things to land in BDO’s favour, but he’s under no illusions that the firm’s new fifth-place position puts it in a position to go totally head-to-head with the Big Four just yet.

Yeah, BDO should probably slow their roll on that belief. Even with its estimated £590 million in revenue thanks to the Moore Stephens deal, BDO is still way behind the firm that puts the “4” in the Big 4, KPMG, which still had more than £2 billion in revenue in FY 2017. (KPMG has yet to release its FY 2018 revenue.) As City A.M. points out, KPMG’s total revenues in the U.K. were roughly equal to firms five to 11 combined.

However, as the firm in the No. 5 slot, Eagland wants BDO to ultimately be so respected that it is “automatically included” in every tender process among Financial Times Stock Exchange clients, City A.M. said. GT gave up on that “respected” BS earlier this year, as it said it would not bid for new audit work at the largest U.K. companies because it’s “extremely difficult to penetrate [HA!]” the audit market, which is dominated by the Big 4, in its current form.

But even though its hookup with Moore Stephens was satisfying, BDO is not going to stay monogamous, Eagland said.

“It is interesting how quickly things can change, and I think when we roll forward to summer 2019, there will be more changes than people are expecting,” he said. “We will continue to have conversations with other people.”

But those potential partners won’t be as good as when they rolled around in the sheets with Moore Stephens.

The post Apparently BDO and Moore Stephens Are Gonna Hook Up appeared first on Going Concern.

To meet the growing demand by global clients for anytime, anywhere access to financial information, Aprio, LLP, a full-service, CPA-led business advisory firm, has entered into an agreement to acquire HPC, a technology-driven, cloud-based accounting firm with a global footprint.

We should note that, as of publication, the deal has not officially closed, and the closing of the transaction is subject to certain contingencies.

Aprio’s acquisition of HPC is a signal that larger firms are moving away from traditional processes and committing more resources to cloud accounting, automation, machine learning, artificial intelligence, remote work, analytics, and forward-looking insights based on data.

Why now?

So why did Aprio choose to acquire a cloud accounting firm? According to Aprio CEO and Managing Partner Richard Kopelman, the move is part of a larger strategy focused on meeting expanding client needs and requirements.

“We have to meet our clients where they are,” Kopelman says. “And when we look at business leadership, it’s transitioning to more millennials and now Generation Z. These people are digital natives, and they want to work with their advisors differently.”

For Bruce Phillips, founder and CEO of HPC, the move toward cloud accounting and Aprio’s acquisition of his company signal the end of a barrier that has long prevented regional firms from reaching their full potential.  

“Through the use of technology, geographic boundaries are being eliminated,” Phillips says. “The world has gotten so much smaller. Our clients can now sell products all over the world out of their garage. So they need a partner who can work with them globally and virtually.”

Why HPC?

If Aprio wanted to grow its cloud accounting capabilities, there were a number of firms it could have chosen to acquire. So what’s so special about HPC?

For Kopelman, the decision came down to personal relationships and leadership.

“Bruce and I have been working together for 20 years,” Kopelman says. “Certainly having comfort with the leader is always helpful. But another reason was that I thought they were doing cloud accounting really well. When I called around and talked to executives and leaders in the profession, his firm’s name continued to come up.”

Phillips also points to his personal relationship with Kopelman as a reason for the acquisition but identifies HPC’s longevity and success in the cloud accounting world as another key factor.

“We’ve been doing this a long time. We are leaders and are on the leading edge of technology. We’ve figured out the financial pieces of the back office and cloud accounting,” Phillips says. “We’re making money at it. There’s a lot of people doing it, but I don’t think there’s a lot of people making money at it.”

Phillips and Kopelman both cite the ability to use technology to widen global capabilities as a major component in the decision.

“For a small virtual cloud accounting practice, we have a global footprint and global reputation,” Phillips says. “I don’t believe many people have that.”

“Twenty-five percent of our staff are foreign-born, and we have specific desks for Korea, Japan, China, the Netherlands, Germany, Russia, and other countries as well. This acquisition will give us an opportunity to serve foreign companies in a much more holistic way,” Kopelman says.

Picturing the future

So what does Aprio look like post-HPC acquisition? It’s difficult to speculate, as the ink hasn’t even dried on the deal yet. But Kopelman sees an Aprio that’s more virtual, more global, and more technology-driven.

“We serve a wide client base across multiple generations that like to work with their professionals in totally different ways,” Kopelman says. “And so we will continue to meet those clients where they want to be met and serve them how they want to be served. Right from the client who wants to bring their tax information into the office to the client who wants to load it all through an app.”

A better employee environment

Kopelman and Phillips both believe the HPC acquisition, as part of Aprio’s larger strategy of pushing the edges of technology, will make the company more attractive to future employees.

“I think this will add to the ability for people just joining the organization to contribute at a much higher level, not just to how we serve clients but how we operate,” Kopelman says.

“We currently have people in 15 states across the U.S., in Canada, and one traveling the world. I believe we’ve brought ‘flexbility’ to a new level. Once we become part of Aprio, our team members will have a lot more resources and excellent training that we’ll be able to tap into. They’ll have more opportunities to do many different things and learn so much more,” Phillips says.

When asked why someone working in the accounting or finance world would want to join the Aprio team, Kopelman identifies the company’s rapid growth and work flexibility.

“We’ve grown over the last 66 years by having an entrepreneurial spirit and culture within our firm,” Kopelman says. “Team members of all levels are encouraged to bring new ideas to the table for services, products, and ways of doing business. Everyone has an opportunity to be a part of the growth of the firm.”

Learn more about Aprio here.

Work at Aprio

Click to apply for current job openings at Aprio’s Atlanta, Georgia office.

Transaction Advisory Manager

The post Why a Top 50 CPA Firm Just Acquired a Cloud Accounting Firm appeared first on Going Concern.

The closing of the deal between Aprio, the fifth-largest accounting firm in Atlanta, and HPC, a cloud-based accounting practice that services it clients online, is still subject to certain contingencies, officials from both firms said. Financial terms of the agreement were not disclosed.

HPC was one of the early adopters of New Zealand-based Xero’s technology and is a U.S. Xero platinum partner. And according to HPC’s website, a 2011 meeting between Bruce Phillips, the firm’s CEO and founder, and Rod Drury, the founder and former CEO of Xero, changed the direction of the business completely.

For decades Harshman Phillips was a traditional CPA firm. … [But after] talking with Rod, Bruce realized that technology like Xero was about to dramatically change the way accountants interact with their clients.

Bruce flew back to Atlanta and started setting up Harshman Phillips & Company (HPC) on Xero. Within six months, HPC was Xero’s number one partner in the United States. Not long thereafter, HPC mothballed its servers [and] closed its physical offices, letting all employees work from home.

HPC also provides custom solutions for businesses across several industries, including professional services, technology and SaaS, e-commerce, and retail.

Once completed, the acquisition of HPC will complement Aprio’s existing outsourced accounting services practice that was established in 2016. Aprio officials said the firm will then be able to offer specific technology solutions to meet each client’s needs, from Xero to NetSuite, and provide integrations with such products as Bill.com, Gusto, Expensify, Karbon, Hubdoc, and Receipt Bank.

Needless to say, Aprio CEO and Managing Partner Richard Kopelman is ready for this deal to get done.

Once we add the experienced staff and technology stack that HPC provides, Aprio will be able to further service our clients at the speed of now. After HPC is on board, we will be prepared to deliver the next generation of client service fueled by the transformation of machine learning and artificial intelligence. We will be able to leverage a myriad of technologies and create the best cloud-based accounting practice for our global small to mid-size clients. Clients want to collaborate with us and engage with their business data to gain real-time insights that will drive growth.

Phillips is expected to lead the practice as president and partner in charge. In a statement, he said:

We are excited to have signed our agreement to join Aprio because, like us, Aprio is continuously changing and adapting to what’s next. Once closed, Aprio will provide our clients a breadth of new services like sophisticated international tax planning and structuring, and tax credits and incentives, including the R&D tax credit, which is so critical for technology companies. Once we become part of Aprio, we will continue our tremendous growth and further increase our capabilities, so we can advise and partner with our clients to help them be ready for the future.

Before the deal, Aprio had 51 partners and 400 professionals in four offices, according to Accounting Today. After acquiring Cloudsourced Accounting in 2015, HPC increased its head count to 25.

[Aprio] [AT]

Image: iStock/Pattanaphong Khuankaew

The post Aprio Itchin’ to Close Deal on Acquisition of Cloud Accounting Firm HPC appeared first on Going Concern.

In other words, the rise and fall of the selfie stick had been duly noted by the nation's paper of record a couple of months ago.

And today a public accounting firm caught up: 

Networking & taking photos with a selfie stick – all in a day's work for our team at @ahcancal #LTCTX pic.twitter.com/Zt6PExr4k7

— PlanteMoran (@PlanteMoran) October 5, 2015

 Sigh.  I'll just leave this here so you remember what not to do.

The post Oh Great, Public Accounting Discovered the Selfie Stick appeared first on Going Concern.

No, we don't mean you're just getting into the swing of busy season. Valentine's Day is upon us, which means another reminder that your work life doesn't allow the luxury of a relationship or women at the bar who are not impressed when you tell them "I'm an auditor" or a husband that hasn't forgotten what you look like.

Though we've previously had advice on celebrating Valentine's Day in the midst of busy season for those of you relationshipped-up already, the following is for the singles out there needing a refresher on finding love this weekend:

DO: Choose partners that are of legal age
DON'T: Sext underage girls looking for noods

Omaha accountant Clarence "Fred" Weber averaged 100 sexts a day to a pair of teenage girls in his quest for "love," one which failed miserably when a business title in one of his inappropriate emails gave him away.

DO: Watch "normal" porn if you must
DON'T: Download kiddie porn

Jess Alan Skousen of Mesa, Arizona was arrested at his tax preparation business in 2009 after his wife found inappropriate images of kids on dude's computer. Just no.

DO: Buy pretty girls at the bar a drink, or choose to stay home
DON'T: Harass young girls in your car, asking them to "touch it for a buck"

Christopher M. Green of Columbus, OH — a senior at Crowe Horwath before his randiness got the best of him — was accused of trying to get it on with a 17-year-old girl, who ratted him out for being creepy. He's since lost his license and found God.

DO: Attend fun social events with singles your own age
DON'T: Throw ragers at your place and hide cameras in your bathroom

Although our offender here was a college professor, this applies to everyone. Mark Landis used to teach accounting at San Francisco State University until a student he'd invited over to party noticed a suspicious flashing light inside a box of tissues in the powder room. Upon further investigation, the student discovered a "hidden" camera. Just eww.

DO: Choose hookups that aren't potential independence violations
DON'T: Hook up with the client

Compared to the rest of the winners we've listed so far, the EY audit partner who gave up her career for a few moments of passion with the chief accounting officer at the client's isn't really that bad. Except for the fact that EY had to resign over an "independence violation" and all. NBD.

DO: Tweet us your cutesy confessions of undying love
DON'T: Wait outside of my apartment and take photos of me without my knowledge

We hope this helps you find the love you deserve and not the love of a cellmate named Bubba. Happy Valentine's Day!

The post A Guide for Single Accountants Looking for Love This Valentine’s Day appeared first on Going Concern.

The transaction provides McGladrey with a presence in Oklahoma City, making the firm the leading provider of assurance, tax and consulting services focused on the middle market in Oklahoma.

"By joining forces with Cole + Reed, McGladrey has the opportunity to more broadly serve middle market businesses in Oklahoma," said Joe Adams, managing partner and CEO of McGladrey. "The depth and breadth of our Oklahoma practice will be a major force in the market, creating opportunities for our clients and our people. We look forward to welcoming Cole + Reed team members, who have an excellent reputation for understanding their clients’ needs and providing quality, responsive service."  

"Becoming part of McGladrey is a natural evolution of our ongoing relationship, given that we have been a proud member of the McGladrey Alliance for 11 years," said Jim Denny, managing partner of Cole + Reed. "Culturally, our firms are very similar. We share a strong commitment to quality and exceptional client service. We share a client-centric approach to doing business and we focus on building enduring, trusted relationships with our clients. Both firms also share a strong commitment to supporting the communities where we live and work." [McGladrey]

The post McGladrey Getting in on the M&A Action With Cole + Reed Acquisition appeared first on Going Concern.

Ryan, a leading global tax services firm with the largest indirect and property tax practices in North America, today announced that the Firm has signed an agreement to acquire WTP Advisors (WTP), one of the fastest-growing independent tax practices in the industry. Michael Minihan and Ian Boccaccio, co-founders of WTP, will join the Ryan executive leadership team as Principals to support the integration and drive continued growth and international expansion. Ian Boccaccio will also serve as Principal and Practice Leader of Ryan's International Tax practice.

The acquisition will add a team of experienced tax professionals to provide additional knowledge and client support across multiple practice areas, including international tax, credits and incentives, state and local tax, and federal tax. WTP's core capabilities in international tax compliance and tax provision services will drive growth in Ryan's rapidly expanding International Tax practice. It also adds a large complement of respected companies to Ryan's portfolio of clients across the world. Revenue generation and accelerated return on investment will be realized by offering WTP clients additional access to the Firm's integrated, single-source solution of more than 45 global tax practices for improving cash flow and minimizing tax liabilities.

"WTP clients will benefit tremendously from the unparalleled tax knowledge, expertise, and commitment to client service that our newly combined team of tax professionals will provide," said Michael Minihan, Partner and Co-Founder of WTP. "This acquisition will support a new phase of international growth and expansion for Ryan, and the legacy professionals of WTP will play a key role in our future success," said Ian Boccaccio, Partner and Co-Founder of WTP.

Now, you will recall a few months back we told you how WTP decided to offer its employees unlimited vacation. That's right, take as much as you want, we don't care. At the time, WTP emphasized that its culture "is vastly different than most consulting firms: micromanagement is a dirty word. Instead there’s the expectation that every single person in the firm will develop and execute new, innovative ideas to enhance the business." We wonder how an acquisition might change that approach?

Ryan boasts "more than 1,900 professionals and associates serves over 9,000 clients in more than 40 countries." Meanwhile, as of 2012, WTP employed 75 tax and finance professionals. Pending culture shock? You betcha.

You will recall, WTP got its start when four PwC refugees founded it in 2005. The goal was to provide Big 4 level client service without the Big 4 level headaches. They even had the balls to poach PwC talent because who better to do that than the little guy who doesn't even register on Bob Moritz's radar?

What will become of WTP's unique culture when it is gobbled up by the behemoth that is Ryan? Your guess is as good as ours. With Minihan and Boccaccio staying on board, maybe a little of that will rub off on Ryan.

The post Now That Ryan Has Acquired WTP Advisors, What Happens to the Unlimited Vacation Policy? appeared first on Going Concern.

According to Cincinnati Business Courier:

Battelle Rippe Kingston has reached a definitive agreement with Chicago-based McGladrey LLP in which McGladrey will acquire "substantially all the assets" of Battelle Rippe Kingston. Both companies expect to complete the deal on Nov. 1.

In December of last year, our cousins at AccountingWEB reported that Dayton-based Battelle & Battelle and Cincinnati-based Rippe & Kingston merged to form Battelle Rippe Kingston. Not even a year later, the 116 employee firm will join McGladrey's 7,000 professionals and associates.

McGladrey is really excited by this acquisition, which will give them the Dayton office they never had and secure their place as accounting services provider dujour for the middle market in Ohio.

"By joining forces with Battelle Rippe Kingston, McGladrey has the opportunity to truly own the middle market in Ohio with offices across the state," said Joe Adams, managing partner and CEO of McGladrey. "The depth and breadth of our combined Ohio practice will be a major force in the market, creating opportunities for our clients and our people. We look forward to welcoming the Battelle Rippe Kingston team and benefitting from their more than 140 years of combined experience in the state of Ohio."

Congratulations on owning that middle market in Ohio, guys.

The post McGladrey Boldly Declares They Now Own the Middle Market in Ohio appeared first on Going Concern.

In that article, GT CEO Stephen Chipman enthusiastically declared his own tax return is prepared by Indians in Bangalore, which is fine for him. What Colin didn't highlight was this quote, in which Chipman declares hiring in Chicago "dead" and pledges to put his all into India:

"The old model of me hiring people in Chicago, to work in Chicago is dead. And when you look across the landscape, the biggest and highest potential for professional talent in the world is in India," Chipman explained.

We pull this quote out now after one victim of Grant Thornton's philosophy has written a piece on the pain of being elbowed out by an acquisition. Ryan Clancey started out his career at Boston-based Wolf & Co., a "smaller firm and has a spotless reputation when it comes to financial institutions in New England," according to him.

After a few years of long commutes and even longer hours, he made a jump to Carlin, Charron and Rosen ("CCR"). Not only did the move save him precious commuting time, but he found his new firm to be every bit as good culturally as his last and states:

[A]t its core [CCR] cared about the people who worked there and their families as well. Even during the late summer when corporate extension returns are due peoples hours were kept to a minimum, which is rare in corporate public accounting. I was shocked when I didn’t have to work a single Saturday in August or September of my first year there.

Sounds great, right? Well yeah, until the firm was sold to Grant Thornton:

November 14, 2011 was a Monday like any other, no one wanted to be there but everyone was at work. A firm wide meeting had been called at the Westborough headquarters but no one really thought much of it. We all arrived in the 2^nd floor conference room to the setup of video screens at the front of the room. Everyone, and I mean everyone from the firm was in this meeting. Well, except one person, our president and CEO who was holed up by himself in the Providence office and who appeared on the video screens in front of us. I am not even sure if there was someone to turn the camera on and off. It was like he was in a bunker. This move never sat well with any of us and probably never will.

I don’t really remember how he said it but he told us that CCR had been sold to Grant Thornton, a much larger firm based out of Chicago. I am not going to get into all sorts of statistics here about GT but they a [sic] top ten firm in size although they like to remind everyone that they are not one of the “big four” firms. We were told that our firm’s cultures were very similar (this would become a joke of epic proportions in the coming months) and that we would hear about our futures in the coming weeks. We filed out of that room broken with more questions than answers.

Warning: any time they talk about a good match in firm culture with a much larger firm that has just bought yours, you can pretty much guarantee that nothing will be the same.

By December 1^st, a quarter of the firm was gone, laid off. The rest of us were offered similar jobs and were told that not much would be changing in the immediate future. We went into the winter holiday break with a certain sense of optimism that everything would be okay in the end.

We couldn’t have been more incorrect. Busy season in public accounting is a grind. 60-70 hour weeks right through the winter until the April 15^th deadline. It seems like you go forever without seeing daylight or your significant other. A lot of firms, like Wolf and CCR, have a minimum threshold of 50 billable hours a week with Saturdays being mandatory. GT was a different animal. We would get 4am emails from the head of the tax department that they were bumping up the minimum 5 hours on a couple occasions and we were continuously told to work harder with what seemed like little praise for our efforts. Towards the end, many of us were going in at 8am and leaving well after 9pm Monday through Saturday.

Fed up with this new grind, Ryan left the firm in May of 2012. "In the year after I left the defections and firings piled up to the magnitude that I didn’t know a single person that worked there anymore," he said. 

This is an fascinating read, especially in light of KPMG's acquisition of a small firm with a good reputation — Rothstein Kass. The grumblings from RK employees weren't exactly a secret and it will be interesting to see how the transition for RK employees will go.

If you've been through an acquisition by a larger firm — Big 4, Dynamic 6, or whatever size — we want to hear your story. Email us or share below.

The post Ex-Employee Chronicles Grant Thornton’s Gutting of CCR After Acquisition appeared first on Going Concern.

Greg Barber is currently the office managing partner of EB's Minneapolis office. He is also a former managing partner at Wipfli. He worked there for over 27 years, according to his LinkedIn profile. He left for Eide Bailly in 2007. The circumstances of which, sound pretty…um, not good, according to one of our sources, a person familiar with the situation at Wipfli at the time. The word is that Barber was forced out but our source declined to elaborate on the details. Fortunately, a second source got in touch with us and explained it this way: 

Greg Barber, former managing partner at Wipfli, was shown the door because he wanted accountability and growth. He is a super bright guy. I can't see how [the merger] works for him long term. When I say he was burned, I'm not exaggerating. He sees no upside to this. It's like getting back together with the girl that kicked him the balls at prom.

Unfortunately, Mr. Barber has not responded to email or voicemail messages. I had several questions but was mostly interested in seeing what he thought of the nut shot at prom characterization. A Wipfli spokesperson has similarly ignored my emails, messages in bottles, morse code communiqués, and I just received a package with my carrier pigeon inside. Beheaded. 

As for this situation at EBW, something tells me next year's holiday party is going to be really awkward. 

The post For One Eide Bailly Partner, This Wipfli Merger Might Be “Like Getting Back Together with the Girl That Kicked Him the Balls at Prom” appeared first on Going Concern.

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A handful of top Microsoft executives are in Silicon Valley meeting with their Yahoo counterparts to try to iron out remaining wrinkles in a proposed partnership, according to people briefed on the talks who agreed to speak on condition of anonymity because the negotiations are confidential.

Get it over with you two! T. Boone Pickens isn’t cock-blocking anymore so you don’t have any excuses. We’d all really prefer if you just got down to biznass instead of flirting in front of everyone and then saying that you’re not interested in each other. Nobody is buying it.
Yahoo and Microsoft Said to Be Closer to Search Deal [Bits via DealBook]

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