Accounting Firms Merging to Add Talent and Territory
The floundering economy has driven a growing number of accounting firms into each others’ arms, according to Long Island Business News. The report states, “Accounting firms are getting bigger, becoming regional and even national players as they not only advise others on mergers, but practice it themselves.”
Accounting firms are merging with the aim of adding talent and expanding their footprint as well as their areas of expertise. Putting it simply: more hands, more clients…more business. 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.
CPA Firms Merging
Whether it’s geography, practice areas or succession, a slew of CPA firms are merging. Among the most recent combinations: Jackson, Rolfes, Spurgeon & Co. (JRS). The firm recently announced its merger with Plante & Moran, PLLC - the 12th largest public accounting and management consulting firm in the country.
JRS says its clients will now have access to a larger knowledge base, more advisors with in-depth industry specialization, and services in new practice areas. The merger brings JRS the strengths and resources of Plante & Moran, while providing Plante & Moran a local base to grow and continue to serve clients in a number of industry specializations.
Adding Talent & Expertise
Experts say mergers are a way accounting firms can add talent and expand geographically. A number of smaller firms are also merging to create a bigger presence in their specialty. Paul Salerno, Melville office Managing Partner for PricewaterhouseCoopers, was quoted by LIBN as saying, “A lot of them are looking for specialty resources. There may be industry expertise lacking in their organization.”
Robert E. Bertucelli, CPA also recently merged his practice into Satty Levine & Ciacco, CPAs, P.C., headquartered in Jericho, New York, according to AccountingWeb. The merger created a combined firm with over 20 professionals. “Satty Levine & Ciacco shares my philosophy of helping our clients grow and succeed, and the merger will broaden and deepen our existing industry specialization, enabling us to offer more comprehensive business advice tailored to our clients,” said Bertucelli.
Dallas-based accounting firm KBA Group LLP’s partners and staff will also join Springfield, MO-based BKD, LLP, one of the 10 largest CPA and advisory firms in the U.S., reports Accounting Web. “A wider array of services offered and industries served will allow us to better meet the needs of all of our clients in this growing global market,” said KBA Managing Partner Larry King.
Expanding Footprints
Accounting firms are also looking to expand geographically. LIBN quotes Frank Candia, Managing Partner at Holtz Rubenstein Reminick, as saying, “There are firms looking for a national footprint. The profession is changing.”
Cherry, Bekaert & Holland, L.L.P recently announced the firm is expanding in the south Florida market. It has acquired the Miami-based accounting and consulting firm of McKean, Paul, Chrycy, Fletcher & Co. This combination gives CB&H, ranked among the 30 largest CPA firms nationally, expanded geographic coverage in the state of Florida. “Expanding our market presence in Florida is a key strategic initiative for our Firm,” said Howard Kies, Firm Managing Partner of CB&H.
Crowe Horwath LLP also recently expanded in New York City. The firm announced earlier this year its agreement to combine with the practice of Hays & Company LLP and to admit six partners to open the new New York City office. “This is another step to accomplishing our vision of becoming a national firm that is globally recognized and will firmly establish Crowe’s entry into the New York market,” said Chuck Allen, Crowe’s Chief Executive Officer.
Now, as more CPA firms prepare to navigate through the myriad of changes and processes that accompany the merger 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.
