Culture, Talent Needs Change Amid Accounting Firm Mergers
Small and midsized accounting firms are merging with firms of equal or greater size. It’s a trend that is expected to hit even higher numbers this year, according to WebCPA. A growing number of midsized firms are absorbing a number of small practices. Meanwhile, smaller firms, including one to ten person firms, are also merging into larger firms.
Now amid the M&A activity, accounting firms should be prepared to navigate through changes in culture and processes that often complicate the consolidation process, according to WebCPA. Executive search firm, A.E. Feldman, is on top of the trend. The firm’s President, Mitch Feldman, says his firm is in a position to assist accounting firm executives with their merger goals. Feldman adds that his executive recruiters have the experience, contacts and discretion necessary to help partners find greater stability amid economic uncertainty and better opportunities as industries evolve.
Whether it’s geography, practice areas or succession, a growing number of CPA firms are merging. Among the most recent combinations, CPA firm Steinberg Advisors announced it is merging with another Chicago-area firm, Robinson, Reinglass & Panos, expanding Steinberg’s client base in the health care market, according to WebCPA. The report states the merger is set to take effect by July 1st. Robinson, Reinglass & Panos’s 13 staff members will all join Steinberg, bringing the total staff level at the combined firm to 42.
New York CPA and consulting firm comprised of nearly 500 people, Marks Paneth & Shron, announced at the end of April it has merged with New York-based accounting firm Arthur B. Greene & Co. CPA, PC. The firm says the merger expands the MP&S tax and family office and business management services offered to small businesses and high-net-worth individuals, including many notable literary and entertainment figures. Two partners - Arthur B. Greene, CPA, JD and Richard Guttenberg, CPA - as well as ten supporting staff members will join the MP&S New York office.
Earlier this month, Marks Paneth & Shron also merged with Montalto CPA, a Tarrytown, N.Y.-based practice, reports WebCPA. Anthony Montalto, a senior tax manager and four staff members from Montalto have joined MP&S.
CBIZ, Inc. announced at the beginning of the year it acquired the non-attest business of Mahoney Cohen & Company, a leading national accounting service provider based in New York City, NY. The transaction is expected to contribute approximately $55 million to revenue.
New Jersey-based accounting and consulting firm Wiss & Co. also announced it recently merged with New York City-based Freeman & Davis to accommodate future growth.
“The melding of FD into the operations of WISS will combine organizations with shared operating philosophies and a dedication to client service that will translate into a smooth assimilation for our people and our clients. The addition of a firm with the long standing reputation in the New York City market place such as Freeman & Davis will enable WISS to expand not only geographically, but across various common industries niches; serving to strengthen WISS now and in the future,” said Jeff Campo, Managing Partner of WISS.
The addition of FD brings the combined total number of people at Wiss & Co. to 27 partners and approximately 200 professional and support staff.
Additionally, Michigan CPA firms Frank & Freedman and Hirsch, Subelsky & Associates have merged to form Frank, Hirsch, Subelsky & Freedman, according to WebCPA. The combined firm includes nine CPAs and three administrative staff. All staff members have been retained in the merger. The four partners in the two firms, Dennis Frank, Daniel Hirsch, Steven Subelsky and Stanley Freedman, decided to merge to raise the level of service they provide and to meet the changing accounting, tax and consulting needs of their clients. WebCPA quotes Subelsky as saying, “It’s more of a joining of forces to increase our marketability and get higher-tier clientele.”
Philadelphia-based Parente Randolph has also combined with Lazar Levine & Felix. As part of the deal, Lazar Lipton Valuation Services, an affiliate of the firm, will become a division of Parente Randolph. The $16 million merger will bring Parente Randolph’s size to 650 team members with a principal count of 82.
“Our services complement each other and their location ties in directly with our growth plan. Having solidified our footprint in New Jersey and expanding into New York City, we look forward to the new business development opportunities and attraction of talent this merger will bring,” said Robert J. Ciaruffoli, Chairman and CEO of Parente Randolph.
Meanwhile, two New York City-based CPA and business advisory firms, Josephson Luxenberg & Kance CPAs PC, and Maybaum & Maybaum CPAs PC, have merged, effective immediately, reports WebCPA. Going forward, the consolidated entity will be branded as Josephson, Luxenberg, Kance, Maybaum & Dolinger. The combined firm will have seven partners and roughly $3 million in revenue.
Now, as more CPA firms prepare to navigate through the myriad of changes and processes that accompany the consolidation process, A.E. Feldman, says it is poised to assist management with their firm’s goals.
If you are a partner in an accounting firm, talk with A.E. Feldman’s President, Mitch Feldman about merge opportunities or moving to a better situation today.
