Category: Firms

Let’s Speculate About: Grant Thornton’s ‘Major Brand Repositioning’

As we mentioned this morning, Accounting Today reported – in an exclusive with Stephen Chipman! – that Grant Thornton is “planning a major marketing campaign later in the year to reposition the Chicago-based firm around the world.” Having had the luxury of watching a rival firm go through the process, we can’t help but think that GT won’t make as bold of a change but we’d love to be wrong about that.


Chipman told AT that GT wasn’t trying to jam into the Bigs saying, “We made it clear that we’re not building a firm to audit GE. Let’s get clear about the verticals and the skills.” So if you take SC at his word what exactly will this major brand repositioning involve? Some initial thoughts:

1. Underpants Gnome Accounting will become a specialty advisory service.

2. Poaching a certain golfer from a competitor.

3. Opting for pastel pinks and blues in a new logo to provide an “alternative.”

4. Four words: Gary Busey, Tax Partner.

5. Your ideas.

It’s Unlikely You’ll Hear More Rumors About a Grant Thornton and Moss Adams Merger

That’s because a source close to GT has told us “the deal with Moss Adams is dead.”

You’ll recall we first heard this rumor back in January which was denied by Moss Adams internally (GT was its typical mute self).

As for the why, our source told us, “The feedback from the Moss Adams board was that the MA partnership would not adequately support the merger.” Whether or not that’s true doesn’t take away from the fact that MA squeezed by GT in the GC Coolest Accounting Firm bracket and, thus, no MA partner worth their salt would want to join forces with GT and have to decipher hand-written notes from Stephen Chipman.

Despite this setback, that doesn’t mean GT isn’t on the prowl but we’ve got no idea who they might have their eye on, so we’d invite you to speculate on who that might be and get in touch if you know anything.

BDO Senior Manager Wants to Know How Best to Say ‘I Quit’

Welcome to the High Holiday edition of Accounting Career Emergencies. In today’s edition, a senior manager at BDO is ready to give notice but can’t decide if it’s best to keep things professional or to go out with a verbal assault the likes of which George Costanza has never seen.

Are you working in the Twilight Zone? Need some good ideas for celebrating the end of busy season? Feeling jealous about the sexy success<l us at advice@goingconcern.com and we’ll get you over your accountants-in-love envy.

Back to kicking off The Public Accounting Attrition Tour of 2011:

Going Concern,

I am still knee deep in busy season, with many engagements still open and pushing their April 30th deadlines. There is no real end in sight, since May and June look equally as busy with Q’s, EBP’s, 9/30 year ends and other projects the Partners engage us for that further contribute to my maxed out PTO accrual. So naturally, as most people do this time of year, I have been looking for open positions searching for that golden opportunity to finally break free of the social, physical and health suppression known as public accounting. That being said, is it wrong to lay down at night and dream of what you would say when giving your notice?

I have played out hundreds of scenarios in my head saying everything from the absolute extreme to the overly conservative. That makes me think – what is the best way to “leave” a public accounting firm? During my 11 year career, I have seen all kinds of people leave in a ball of fire, rather than just fade away. Those people think that the firm will collapse without them, or their leaving will cause a mass exodus or significant change to the firm. No way. It never happens. So really, what is the point of telling the Partners (and HR in the exit conference), what you really feel in your heart?

Dear Dreaming of Quitting,

There’s nothing at all wrong with dreaming of the most epic march in ever. I assume you’re referring to something similar to this:

As you mention, people who go out with a furious speech that features wild hand gestures and name-calling are typically those who think they are indispensable or are somehow the catalyst to the collapse of their firm. You’re right to say that this is NEVER the case. A team or an office may go through a rough patch (mileage of rough patch may vary) but eventually things calm down and return to relative normalcy.

So to answer your second question – the best way to leave your firm is: quietly. That doesn’t mean you don’t tell your colleagues, friends or others that you’re leaving (most probably know that you’re looking to leave anyway) but it should be a drama-free encounter. You meet with the appropriate people, tell them that your last day will be X and that should be it. If they pry about why you’re leaving or attempt to convince you otherwise, you can respectfully decline or entertain their queries and/or begging. That’s up to you. Even if you’ve been used and abused throughout the time at your firm, would it really make you feel better to tell that a partner that the experience of working with them was akin to a circle of Dante’s Inferno that he dared not scribe?

As for the motive behind these overtly dramatic “I quit!” speeches, I get the feeling that those who feel compelled to give them think they will get some satisfaction out of telling someone exactly how they feel; that giving everyone who deserves a piece of their mind will somehow make everything negative that happened in the past worth it. If you feel like expressing some honesty about your experience, that’s perfectly okay but for crissakes, have some tact. If you simply feel justified to spew verbal excrement, that only makes you look like a lunatic. A very unprofessional lunatic.

Grant Thornton Welcomes LECG Employees to the Brotherhood

After yesterday’s news that LECG that was more or less pulling the plug, Grant Thornton finally put out a press release that they were acquiring a “significant portion” of the company’s business.

GT is taking on 270 employees in Atlanta, Chicago, New York, Philadelphia and Portland across all its service groups. Naturally, Stephen Chipman is thrilled to share this dynamic news, “We are pleased to welcome these outstanding individuals to Grant Thornton LLP,” SC said, “I am confident that they will fit in perfectly with our people — intellectually curious, talented individuals who want to make a difference with their clients, in their workplace and in their communities.”

Which was a perfect segue into this:

“As I have stated before, our goal is to be the leading audit, tax and advisory firm serving dynamic organizations in our chosen markets,” continued Chipman. “Dynamic companies are companies that are ambitious and growing, expanding internationally. They are dealing with critical events or transactions and are in need of our value-added, integrated service solutions. We will continue to explore additional strategic mergers and acquisitions as our balance sheet is healthy [Ed. note: care to share?] and we are in a position to attract similar talent.”

In other words, GT is still on the prowl for more people to join their party. Any interested parties need to come with dynamism in boatloads.

Going Concern March Madness Update: Reznick’s Magic is MIA; Grant Thornton, BDO on the Ropes

Look gang, since too many of you are distracted with doing billable work to email us anything half way interesting, I’m guess I’ll just update you on the progress in Round 2.


The two highest remaining seeds – Grant Thornton and BDO – are looking defeat square in the face right now to their respective opponents – Crowe Horwath and Rothstein Kass. First round comeback kid Reznick Group is currently getting worked by Moss Adams which makes should make us all wonder what happened to the teamwork we saw in the first round. Perhaps they’re a one-trick pony?

Finally, in the least talked about match-up, Mickey G’s and Dennis Rader’s favorite firm (ideas for something better are welcome) look like they’ll be taking it down to the wire. There’s just over thirteen hours left to vote, so get the word out sooner rather than later (sorry Clifton Gunderson).

BDO Is Not Impressed with KPMG’s Business Tactics in Brazil

BDO announced a new member firm in Brazil today because…well, KPMG kindasorta poached their last one. Well, BDO Global CEO Jeremy Newman has had it up to here (i.e. eye-level) and wanted to point out that A) this not uncommon:

“BDO is not the first firm to have suffered as a result of our larger competitors using their dominant financial position to buy market share and we have expressed our concerns about this in BDO’s recent submission to the European Commission’s Green Paper on the role of the audit profession,” said Newman.

B) this is some shady dealings:

“These tactics are not driven by client needs but by one firm’s wish to buy market share and presumably achieve further economies of scale. We are concerned that when one firm looks to dominate it reduces choice for clients and leaves the market worryingly dependent on just a few players.

and C) these aren’t just fightin’ words. The most interesting accounting firm in the world will be taking action:

“BDO will be lodging an objection to this deal with the Brazilian competition authorities.”

Challenge extended.

BDO lines up complaint against KPMG Brazil [Accountancy Age]

Unfounded Rumor of the Day: Grant Thornton About to Announce a ‘Big West Coast Deal’

Remember those GT/Moss Adams rumors from back in January? At the time, our post sent both firms calling for plumbers but we still mangaged to get a copy of an email from Moss Adams CEO Rick Anderson that denied the rumor in an email to the firm’s partners. Everything has been quiet since then mostly because…well, it’s busy season. Granted, firm leaders like Stephen Chipman and Rick Anderson aren’t thigh-deep in spreadsheets like most of you so the fact it’s entirely plausible that while you’re all distracted, TPTB have been courting each other.

We received this brief note from a tipster yesterday:

Rumor is [Grant Thornton] [is] about to announce big west coast deal.


Our source originally speculated that a tax/valuation/consulting boutique was the target because of an old Andersen connection but then told us that the latest word from the west coast is that Moss Adams is back in the picture. In our original post, we went over the reasons for and against the GranMoss merger and frankly it still could go either way (we’re leaning “no” at this point). That said, Grant Thornton has been on a buying spree, most recently picking up some attest services from the LECG Corp. fire sale, so a merger of some kind wouldn’t be a surprise but WHO?? We’re listening to any and all well-founded or crackpot theories.

Moss Adams has declined to comment on the rumor thus far and Grant Thornton did not return an email requesting comment.

UPDATE: This just in from a Grant Thornton tipster:

While I have no actual basis for substantiating this, we have a Moss Adams wireless signal in our office in the central region. There is no Moss Adams office in our building, or even out state, its been there since about January when the rumors first popped up. I just thought it was interesting. I have no insight into any of this, I’m just a lowly peon staff…

Perhaps there’s an explanation for this but I’m no expert on the wireless signals and whatnot so I’ll leave it to you to reason this out.

Choosing Between a Big 4 and Mid-tier Firm Part XXIII

Welcome to the upset-special edition of Accounting Career Emergencies. In today’s edition, a future public accounting foot soldier has to make a decision between a Big 4 firm and “GT/BDO type firm” but is stumped on what to do and can’t find a two-sided coin anywhere. The next best solution was, obviously, emailing us.

Want to know if you’re in a dead-end job? Trying to deal with stress in the waning days of busy season? Anxious about changes in your job? Email us at advice@goingconcern.com and we’ll help you pull through.

Back to the indecider:

Hi Going Concern,

I have an offer from a Big 4 and a GT/BDO type firm and am having a tough time deciding. I wanted to ask which option will be better in the long-run if I want to start in public accounting, but then might want to move to a large publicly traded tech company? I guess my question is which route would give me better exit opportunities and long-term benefits should I decide not to stay in public accounting? (If I leave, I have a good idea of where I’d like to work on the corporate side.)

1. Mid-Tier Firm experience — having taken lead on small projects by my second year, more interaction with clients etc. Having experience with mid-sized (not public) tech companies, and experience with large, public companies that are not tech companies.

2. Big 4 — staying a little more than 2 years (enough to move up to Sr. Associate level but not staying too long beyond that) – and having worked on large, public tech companies. Having the Big 4 brand name on my résumé.

Also, there’s a chance that I might enjoy staying at the Mid-Tier in the long-term, but without being sure, I want to keep my options as open as possible.

Thanks. Any advice is appreciated.

Stuck in Indecision

Dear Stuck in Indecision,

I’m impressed that you’ve managed to cover all the angles here. You could possibly like each scenario without considering what it is actually want with your career other than “might want to move to a large publicly traded tech company” or “might enjoy staying at the Mid-Tier in the long-term.” You’re basically saying that you’re up for anything – hence, ” I want to keep my options as open as possible.” Your options are open all right since you’ve committed to exactly nothing. However I’m here to help, so here goes.

To keep it brief: all things being equal, go with the Big 4 firm. Here are some details – it’s likely that you will have the opportunity to work on smaller clients at a Big 4 firm, thus giving you the chance to “take the lead.” If you also have experience working for larger, publicly-traded companies (not as likely at a mid-tier), your experience will be more vast and allow you decide what it is you actually want to do (because, at this point in time, you don’t seem to have a clue). GT, BDO, McGladrey et al. are fine firms but you have a Big 4 offer – take it. You didn’t mention the people (a big selling point at most firms) so I’ll assume you’re indifferent or that they were all equal on this front. The network you build in a Big 4 firm will benefit you the long run and the experience will as well. Just don’t expect your firm to do well in “cool” contests. Good luck.

Chief Audit Executives Like Sarbanes-Oxley…No, They Really Like It

A new survey of more than 300 chief audit executives (CAEs) by Grant Thornton LLP finds that while nearly half believe that the shifting regulatory landscape poses the greatest threat to their company, a vast majority (88%) do not believe that the Sarbanes-Oxley Act (SOX) should be repealed. Of those that believe SOX should be repealed, the cost of compliance is the main reason for doing so. “Since the passage of SOX, organizations have had to dedicate significant resources to comply with a host of new laws and regulations,” noted Warren Stippich, a Chicago-based partner and Grant Thornton’s national Governance, Risk and Compliance solution leader. “Based on discussions with various CAEs during the survey process, many believe that SOX brings a continued focus by management on financial and governance-related controls. However, CAEs believe that compliance audit processes are now well-defined and are currently exploring ways to contribute value creation to the organization well beyond compliance monitoring and reporting.” [GT]

BDO’s Tax Shelter Team Was Known as the ‘Wolf Pack’

I figured you guys should know that.

Ex-CEO Denis Field’s trial for his alleged lead-wolf role in the tax shelter case started last week, while the rest of his fellow wolves – Michael Kerekes, Adrian Dicker, Charles Bee Jr. and Robert Greisman – all pleaded guilty back in 2009.

Led by Field, BDO Seidman was one of the most aggressive tax-shelter marketers, starting in the late 1990s. Inside the firm, the tax-shelter team was known as the “wolf pack.” Field became CEO of the firm in 2000. Tax services accounted for nearly half of BDO Seidman’s $420 million in U.S. revenues in 2002, up from 28 percent in 1998.

Ex-chief executive of BDO Seidman on trial in tax-shelter case [CT]

Did Prosecutors Bungle Their Case Against BDO’s Former CEO?

Maybe! Denis Field’s lawyers certainly aren’t amused with the tactics:

Denis Field, ex-CEO of BDO Seidman, the world’s fifth largest accounting firm, claims Manhattan prosecutors intimidated his former firm into curtailing and eventually cutting off payments to his lawyers. In recently filed court papers, he claims that the government deprived him of his constitutional right to counsel and seeks dismissal of the case.

Field alleges that among other tactics, prosecutors threatened to indict the firm if it kept funding his defense. During a hearing on Thursday, U.S. Judge William Pauley III of the Southern District of New York, who is presiding over the case, closely questioned prosecutors about the accusations. A ruling is expected soon.

If this sounds familiar, it should. Back in 2007, the very same prosecutors – Stanley Okula and Shirah Neiman – pulled a similar stunt, “convincing” KPMG not to pay the legal fees for the partners and employees that were facing criminal charges for their roles in the firm’s tax shelter schemes:

That case was thrown out in 2007 after U.S. Judge Lewis Kaplan found that prosecutors had improperly “coerced” KPMG into cutting off the legal fees of 13 former KPMG partners and employees. “KPMG refused to pay because the government held the proverbial gun to its head,” Kaplan wrote.

Two of the prosecutors called out by Judge Kaplan — Stanley Okula and Shirah Neiman — have also been involved in the Field case, a fact that is prominently noted by Field’s lawyers in their motion to dismiss. “The reason for the government’s conduct is obvious — as with KPMG, the prosecutors believed BDO ‘should not pay the fees’ of allegedly culpable individuals,” Field’s lawyers argue. They cited the KPMG case no fewer than 50 times in their brief.

So it appears that Okula and Neiman aren’t much for personal reflection and may have pulled out the proverbial gun again. But they’re making a case for themselves, saying BDO’s motivation for sticking Field with the tab isn’t related to them putting the screws to the firm, “the government argues that BDO stopped paying Field’s legal bills after the firm discovered that Field hid from the board a report, prepared by law firm Skadden, Arps, Slate, Meagher & Flom, warning that certain tax shelters that Field was promoting were questionable.” Hey! – you can even ask BDO’s general counsel, he’ll tell you that the firm’s decision had nothing to do with get the government off their backs. And if you can’t believe a lawyer, who can you believe?

Prosecutors on defensive in BDO Seidman fraud case [Reuters]

Future Family Man Is Going Back and Forth Between BDO and Big 4 Offers

Welcome to the Calebs-are-a-loyal-sort edition of Accounting Career Emergencies. In today’s edition, a non-tradish student is getting all wishy-washy about choosing between BDO and a Big 4 firm. There are lots of variables involved so we’ll get right to it. But first…

Is your busy season belt already busting? Need help choosing classes to reach the 150 credit hours required in your state? Worried your lack of WASPyness will hurt your career ambitions? Email us at advice@goingconcern.com and we can recommend an exercise regimen or a nice fine arts class. Skin color and religion, on the other hand, are above our pay grade.

Back to our decider du jour:

I work in industry accounting now as a college student and I dread the monotonous work of industry accounting. This has brought me to the conclusion that I may just enjoy public accounting more in regards to a long term career. I see my CFO, controller, and director all working crazy hours which leads me to believe that my decision between public and industry would not change my work hours enough to really affect my work/life balance.

Unlike the majority of college students in their 20s I have significant financial obligations including a mortgage, car payments, and everything else that comes with those expenses. I am also married (no kids) and my wife is a low paid professional in her industry (marginal income, just enough to get by, but not enough to carry the house hold alone).

As for my offers – I have received a full-time offer with BDO to begin in the last quarter of this year, and I have also received an internship offer with a Big 4 to begin in January 2012 (hopefully beginning full time towards the end of 2012/beginning of 2013). If I take the internship for the sake of going Big 4, I will have to take out extra student loans through my masters to subsidize my ramen noodle living in the period between the internship and full-time start date. I will also have to put off starting my family, which is a big deal for me and my wife since we would like to start that before she gets into her 30s (which would be next year).

I must say that I originally chose the Big 4 and called BDO to decline my offer and let them know what my choice was. They seemed disappointed to hear it and the partner told me he doesn’t usually take part in recruitment and would really like me on his team. This is when he pushed my original offer from Jan 2013 to begin a few months earlier if I would have liked.

Also, when I inquired about the benefits offered at the Big 4 I was perceived “pushy” and I was told that I should be grateful for being extended an opportunity with them that many students would do anything for. When I presented this issue to professionals at other firms as well as professors I was always reassured that my question and my choice of approach regarding benefits was completely valid and the firm overreacted.

I am not sure if going Big 4 will be worth the financial and family delay sacrifice, or if going BDO and foregoing the Big 4 prestige would be a better idea since I have a partner already favoring me there from the get go, and instead of incurring more financial liabilities (through the extra student loans I would need if I took the Big 4 internship) I would be able to start paying some off. Some advice to help me make my decision would be greatly appreciated!

Hopeful Future Partner

Dear Hopeful,

Since we received your note prior to our pithy warning on Friday, I’ll ignore your verbosity. AS FOR THE REST OF YOU, there’s something to be said for brevity – keep that in mind.

All right, then. You’ve got Big 4 vs second tier decision to make, the typical American debt load and a biological clock to consider. Christ, man. We won’t touch the latter two but will say: aside from drinking heavily, you really need to sit down with the Mrs. to figure a lot of this out.

As for your career problem, we’re a little confused. It seems like you’ve already turned down BDO and accepted the Big 4 offer but there must be get out of accounting firm jail free card that we’re not aware of. Put that aside and it sounds like BDO is bending over backwards for you and your Big 4 friends are a tad touchy about a pretty standard inquiry (but maybe you’ve got people skills like Dunstan Pedropillai). So if you’re back to making a decision between the two, going with BDO seems like your best move just based on the people you’ve encountered.

To address this situation a more general sense, do you honestly think “Big 4 prestige” is going to help your situation? Anyone – recruiter, partner, manager, staff – that tries to guilt trip you with “[you] should be grateful for being extended an opportunity with [us] that many students would do anything for” doesn’t give a damn about you and is more concerned about the power they hold over you with this “opportunity.” Tell them to stick it and get your career started. Your wife will appreciate it.