Tag: Accounting firm mergers

(UPDATE) Accounting Firm Merger Monday: Dixon Hughes, Goodman & Co. Combine to Form Dixon Hughes Goodman

~ Update includes Goodman & Co. quote in fourth paragraph.

Late last week we heard some rumbling about a merger between High Point, NC-based DIxon Hughes and Virginia Beach, VA-based Goodman & Co. and lo and behold, this morning the press teams from both firms have dropped us the press release announcing the merger and a link to this page that includes details on the merger, a letter to clients, a list of office locations and FAQs.


The combination, effective March 1, will make Dixon Hughes Goodman the 13th largest firm (by revenue) in the U.S. with a combined revenues of over $280 million. This places them one spot ahead of Baker Tilly Virchow Krause and behind directly behind Plante & Moran (this is going by Accounting Today‘s count). The combined firm of Dixon Hughes Goodman will have 30 offices (with HQ in Charlotte), in 11 states with 1,700 professionals. The firm’s leadership will consist of Thomas H. Wilson, Managing Partner of Goodman & Company, as the Deputy Chairman and Chief Operating Officer, Charles Edgar Sams, Jr., Chairman of Dixon Hughes, will continue to serve as Chairman and Kenneth M. Hughes, Chief Executive Officer of Dixon Hughes, will also remain in that position.

Both firms ranked very high in Vault’s Accounting 50, with Dixon Hughes coming in at #5 and Goodman & Co. landing at #15. Goodman ranked very high in some notable categories including #2 in compensation, #3 in business outlook and #1 in green initiatives.

The press release states that Goodman & Co. “retain all of its existing Virginia, Maryland and Washington, D.C. offices,” which we interpret as “no reductions in headcount” but we’re waiting to confirm and we’ve confirmed this with Goodman’s Gary Thomson who said, “we anticipate an increase in the near term as we take new industry specialties to our new markets.”

On a far more exciting note, Goodman & Co., by virtue of this merger, has broken into the Elvis-impersonation market, of which Dixon enjoys a sterling reputation.

Congrats to both firms on the merger and we wish them many happy years together. Obviously, the honeymoon will have to wait – busy season and all. We’ll keep you updated on any further developments.

More Merger Mania: WeiserMazars, Marks Paneth & Shron Walk Away After ‘Serious’ Talks

Last Friday we learned that Marcum and Stonefield Josephson were now super-accounting friends. The MarcumStonefield deal was just the latest combinatio in what has been a busy year for consolidation by CPA firms.

Eisner and Amper joined forces, as did Weiser and Mazars while RubinBrown and Wipfli among others have also been active.

With our interest piqued, we did some digging and discovered a rumor of another merger, this time between WeiserMazars and New York-based Marks Paneth & Shron.


A source with knowledge of the discussions told GC that MP&S has been looking for various buyout options, including discussing a possible merger with Eisner earlier this year. When it was clear that the EisnerAmper deal was happening MP&S started looking for other options, which included WeiserMazars.

Our source indicated that the deal was very close to being finalized saying that it “sounded like” MP&S’s management committee had approved the deal.

We checked in with both firms to find out the latest on the situation and discovered from an MP&S spokesperson that the deal wasn’t happening. Officially, this is what the firm had to say:

It’s our policy not to comment on specific discussions. In general, we can say that we are always looking for approaches that will enable us to anticipate and serve the evolving needs of our highly valued and sophisticated client base — and also allow us to provide new opportunities and challenges to our people. Occasionally that means exploring partnerships, collaboration and even mergers with other best-of-breed organizations with complementary capabilities, expertise and values. However, no such discussions are currently in progress.

A short time we heard back from Doug Phillips, the Managing Partner at WeiserMazars who provided us with this statement through a spokesperson:

After much serious and detailed discussion, the managements of WeiserMazars LLP and Marks Paneth & Shron LLP have concluded that we cannot agree on a set of merger terms that we are prepared to submit to the partners of each firm to vote on. We have therefore concluded our discussions for the time being.

We continue to have the greatest respect for Marks Paneth & Shron and its partners. A combination is just not the right move for both firms at this time.

So there you have it. There was little wining and dining but ultimately it wasn’t love. That being said, it sounds like both firms are on the hunt, so we’ll keep our ears open. If you have information or hear rumors of any potential merger, email us at tips@goingconcern.com with the scoop.

Accounting Firm Merger Mania: Marcum and Stonefield Get Together

Marcum continues its shopping spree, picking up Stonefield Josephson after picking up UHY’s New England offices back in the spring.

Stonefield, which had offices in San Jose, Walnut Creek and San Francisco, as well as three others in Southern California and one in Hong Kong, merged with Marcum LLP and was rebranded MarcumStonefield.

Terms of the deal were not immediately available.

Founded in 1975, Stonefield had 150 employees in its seven locations. Now, Marcum has more than 1,100 employees in 21 offices, most of which are on the East Coast.

Stonefield, Marcum firms merge [SJBJ]

Grant Thornton CEO Admits That He Wasn’t Prepared for the Chicago Winters

Stephen Chipman also says that he misunderestimated the demand for his time. Who could have known?


Highlights/questions:

• The over/under is $2 billion by 2015. Who has action on this?

• Is everyone clear on the “the dynamic organization space”?

• What do we think of Stephen sans spectacles?

• Merger and acquisition strategy? Who is GT going after? SC keeps it vague, per standard operating procedure. Accordingly, we welcome your rampant speculation.

Let’s Discuss: Big 4 Merger Rumors

We have the luxury (and giddy pleasure) of receiving more crazy ass emails than the average Tom, Dick or Harriet (see: PwC Houston Partner). Some of the stories turn out to be true, some turn out to be rumors. That’s just the way things go.

One reoccurring rumor that continually keeps us guessing though is that of a mega-merger among a Big 4. Frankly, we take a agnostic approach to these rumors (that’s probably shocking for some of you) but they never fail to pique our curiosity. You can drop us a line with your wild-ass theory about tri-firm merger between KPMG, Moss Adams and Baker Tilly to form MGMT but we can probably debunk it with a couple of emails and phone calls. Plus, the firms will deny ’til they die on any of these rumors anyway.

EisnerAmper is a perfect example.


They played coy with rumors around their merger for about a week and didn’t roll out the BIG NEWS until Monday when they could issue their boilerplate press release on cue (the video was a nice touch, however).

Lots of accounting firms are looking to grow through combinations or purchases in this impotent economy (WeiserMazars, Marcum & UHY, hosts of regional combos) but are the Big 4? Our intuition says no but the rumor mill provides us with whispers of talks occurring between the largest firms.

It’s not completely unheard of for the largest firms, as is evidenced by McGladrey’s purchase of Caturno & Co. that C.E. Andrews was so excited about in his interview with the Minneapolis Star-Tribune’s. Also, Barry Salzberg told the Journal that Deloitte is actively looking (granted, it’s for the consulting practice) but these are small potatoes.

No, the stuff we hear about has a Big 4 firm going with a second tier firm to either leapfrog other Big 4 firms or to inch closer to them. The difference between PwC (#1 in global revenues) and KPMG (#4) is around $6 billion. Depending on how aggressive a firm wanted to be in its merging efforts, the gap could be close quickly or a new #1 could be crowned.

But forget about revenues and the auspiciousness of the being the biggest firm for a second. Can a Big 4 firm realistically merge in a second tier or top 10 firm successfully? Never mind the logistics of office location, files, people etc. What about culture? What about service methodologies? The mere thought of matching up those pieces is a mind job for the people that actually have to deal with them. The bigwigs at the top might play off the problems that such a transaction would create for those in the trenches. Make adjustments would take years.

But it’s been done! Coopers & Lybrand and Pricewaterhouse in ’98 being the most recent. KPMG and E&Y tried it in ’97 and failed so it’s unlikely that the idea of another huge merger doesn’t cross people’s minds every once in awhile.

So let’s talk this out. Are these rumors completely unfounded or are is it understood that there are talks ongoing? If they are rumors, where the hell do they come from and what’s the motivation to spread said rumor? People in the know are encouraged to bestow wisdom in the comments and get in touch with us. And if you’re a vet from a merger of any size, share your thoughts on the experience and how your firm handled it.

Eisner and Amper Politziner & Mattia End Suspense, Officially Announce Merger

This, after the two firms downplayed the rumors of the transaction last week. Charly Weinstein, EisnerAmper CEO and Howard Cohen, EisnerAmper Chairman got down to brass tacks in this video:

BPR announcing the exceptional service to the NY/NJ/PA corridior:

New York, N.Y. and Edison, N.J. — August 16 /PRNewswire/ — Eisner LLP and Amper, Politziner & Mattia, LLP announced today that they have combined their practices to form EisnerAmper LLP. The newly formed entity will be the 14th largest accounting firm in the United States and the leading regional firm in the Northeast, with more than $250 million in annual revenue.

Combined, EisnerAmper is the premier regional accounting firm in the New York-New Jersey-Philadelphia corridor, with more than 1,200 staff, including 170 partners. Its principal practice groups provide a variety of accounting, tax and other professional services to closely-held and publicly traded companies, financial institutions, and high net worth individuals and families. EisnerAmper’s core expertise extends to the financial services industry, technology, life and health sciences, software, clean tech, real estate, healthcare, manufacturing and distribution, as well as sports, media, entertainment and others. The firm is also the nation’s 10th largest auditor of SEC registrants.

“This combination is the most important and exciting development since the founding of our respective firms and it is hard to imagine two firms that represent a better strategic and cultural fit,” said EisnerAmper’s Charly Weinstein. “Given our complementary strengths in practice areas and regional reach, together with the combined knowledge of our talented professionals, EisnerAmper is exceptionally well positioned to continue to provide our clients with the highest level of expertise and service.” EisnerAmper’s Howard Cohen added, “Our firms share this common vision and strategy, and we look forward to deploying our combined resources and expertise to meet the increasingly complex accounting and business advisory needs of our clients throughout the Northeast and beyond.”

Expanded Services for an Evolving Business Environment
The firm’s expanded resources and expertise will benefit clients that face the challenges of a rapidly changing regulatory landscape, new taxation initiatives, and a volatile and competitive global business environment. EisnerAmper provides a broad array of professional services that address this changing competitive environment, while maintaining the personalized, quality service and relationships that its clients expect and value.

EisnerAmper presents a unique combination of financial expertise in one organization. The firm offers comprehensive audit, tax and business advisory services for the insurance, banking and alternative finance markets (including hedge funds, private equity, venture capital funds and broker-dealers).

Beyond accounting, audit and tax, EisnerAmper’s advisory services include enterprise risk management, mergers and acquisitions, business and asset valuation, debt financing, internal audit, forensic accounting and litigation consulting, reorganization and insolvency and international expansion. Clients of the firm have access to a deep pool of talented professionals with expertise in many industries and practice areas, who can help clients address complex accounting, tax and compliance issues.

EisnerAmper will serve clients from its 11 offices which are located in New York City and its suburbs, across New Jersey, in Philadelphia, and in the Cayman Islands. EisnerAmper is an independent member of PKF International, the 11th largest global accountancy network of over 240 legally independent member and correspondent firms located in 125 countries. EisnerAmper’s affiliation with PKF International enables the firm to provide technical and advisory services across North America and around the world to clients with international requirements.

A Magnet for Talented Professionals
The expanded career opportunities resulting from the combination make EisnerAmper a firm of choice, enabling it to continue to attract and retain the best and brightest professionals in a wide spectrum of practice areas. Both firms are dedicated to providing fulfilling careers for our staff and have a long history of making the working environment and culture a priority as illustrated by each firm placing high in several Best Places to Work rankings.

“The relationship between Eisner and Amper extends back many years and has always been one of mutual respect and admiration,” said Howard Cohen, who becomes the firm’s Chairman. “We have undertaken this combination with full confidence in our new partners and colleagues. Together, we are infinitely stronger in terms of regional reach, professional expertise and client service. We are well positioned for both immediate and long-term growth.”

“This combination is based on a strong foundation of trust that extends to the partners at both firms,” said Charly Weinstein, the firm’s new Chief Executive Officer. “Our teams have already begun working in concert to ensure not only a seamless transition for clients, but also to deliver to them the maximum benefits of our greater combined resources. This is truly a situation where the whole is greater than the sum of its parts.”

About EisnerAmper LLP
EisnerAmper is one of the premier accounting, tax and business advisory firms in the United States and the leading regional firm in the Northeast. EisnerAmper provides a wide array of services to a diverse client base including publicly traded and privately held companies and high net worth individuals and family groups. For more information, please visit EisnerAmper at www.eisneramper.com.

Eisner, Amper Politziner Playing Coy on Merger Rumors

NJBiz reports that New York-based Eisner is planning to merge with Edison, NJ-based Amper Politziner & Mattia LLP. The two firms – ranked 24th and 26th in Accounting Today’s most recent list of Top 100 firms – combined would have 1,200 employes and over $250 million in revenue.

This would shoot the combined firm – working name: Eisner Amper – to 14th on the list (based on revenues) ahead of Clifton Gunderson and hot on the heels of Baker Tilly Virchow Krause.


From the looks of it, the merger would benefit Eisner’s presence in the Garden State while APM would have much better access to the NYC market.

Eisner’s CEO Charles Weinstein wasn’t reached for comment and Amper CEO Howard Cohen told NJBiz, “We have no binding legal documents with any firm at this time,” which, as far as we’re concerned, basically means that it’s a done deal and the lawyers are still sorting out the signing pages.

Of course there’s always the slim chance for a board room blowup and the whole thing gets called off but we’re all hoping for the best.

EXCLUSIVE: Amper Politziner plans merger with Eisner [NJBiz via Web CPA]

Accounting News Roundup: Geithner Is Ready to Let Tax Cuts Die; Hayward on His Way Out?; PwC Wants Glitnir Lawsuit Tossed | 07.26.10

No new recession, let tax cuts die: Geithner [Reuters]
“The economy is not likely to slip back into recession but letting tax cuts for tans expire is necessary to show commitment to cutting budget deficits, Treasury Secretary Timothy Geithner said on Sunday.

In appearances on several Sunday talk shows, Geithner said only 2 to 3 percent of Americans — those making $250,000 or more a year — will be affected when tax cuts enacted under former President George W. Bush end on schedule this year.”

BP Said to Prepare Dudley as CEO as Board Looks for Recovery [Bloomberg]
“BP Plc plans to name Robert Dudley to succeed Tony Hayward as chief executive officer as the board looks to recover the company’s position in the U.S., two people with knowledge of the matter said.

Dudley, the director of BP’s oil spill response unit, is ready to be announced as the company’s first American chief and to take the helm Oct. 1, one of the people said, asking not to be identified because a final decision hasn’t yet been made. The decision was reached in discussions with board members about how best to take BP forward and rebuild its U.S. position, the person said.”

Madoff Investors Brace for Lawsuits [WSJ]
“Irving Picard said he could wind up suing about half the estimated 2,000 individual investors he has called “net winners” from their dealings with Mr. Madoff. Such investors withdrew more from Mr. Madoff’s firm than the amount of principal they invested.

‘The people who made money, who got more, have made money at the expense of the people who didn’t,’ said Mr. Picard, who has the power under federal bankruptcy provisions to pursue money withdrawn from Bernard L. Madoff Investment Securities LLC before it collapsed in December 2008 and redistribute the funds fairly among victims.

Mr. Picard must file any so-called clawback lawsuits by December, the two-year anniversary of Mr. Madoff’s arrest and the filing of regulatory proceedings against him. ‘We’re not going to wait until the last minute,’ Mr. Picard said.”


Change the world or go home [AccMan]
Dennis Howlett implores you that if you want your firm or business to really stand out then it’s going to take more than a catchy slogan or a boilerplate email to get people’s attention. You best recognize an opportunity when you see one.

“I’ve lost count the number of times I’ve said but it is worth repeating. When disruption like SaaS comes along, it represents an opportunity. From a professional standpoint it should mean that firms can further commoditize what they do by using accounting dashboards that show them the status of their clients’ activity. It is a short step to seeing how this might be integrated into fees, billing, customer satisfaction measurement and the like.”

If You’re Going To San Francisco…AAA Will Be There [FEI Financial Reporting Blog]
Edith Orenstein has the lowdown on this year’s American Accounting Association’s (AAA) annual meeting. This year’s event is in AG’s backyard (she loves giving directions, btw) from July 31 to August 4th and will feature Francine McKenna and Professor Albrecht on one of the panels.

Join Me For a Nice Little CPA Exam Chat on August 3rd! [JDA]
Speaking of Adrienne, she’ll be over at CPA Exam Club to take your questions on everyone’s favorite test on August 3rd. Yes, that’s one week from tomorrow.

PwC Demands Dismissal of Glitnir Lawsuit [Iceland Review]
PwC’s lawyers argue that Glitnir and the firm agreed to do any legal wrangling in Iceland if the poo hit the fan. Late last week they requested that the lawsuit in New York be tossed.

Saltzman Hamma firm details merger with RubinBrown [Denver Business Journal]
“Saltzman Hamma Nelson Massaro LLP, a century-old Denver accounting firm, is merging with St. Louis-based RubinBrown LLP to form what’s expected to be among the 50 largest accounting firms in the United States, principals were set to announce on July 23.

The new entity, which will operate as RubinBrown, will employ 375 people in offices in Denver, St. Louis and Kansas City, Mo. The merger will be effective Aug. 1.”

District Court Denies Charitable Deduction for Donation of Home to Fire Department [TaxProf Blog]
Just donate a car next time. It’s a far worse investment than a house.

IRS Proposes PTIN Fees [JofA]
$50 for your very own preparer tax identification number! Of course there’s also a ‘reasonable fee’ on top of that from “a third-party vendor that will administer the application and renewal process,” that gets thrown in for good measure.

My Life as a White-Collar Criminal [White Collar Fraud]
Sam Antar went on Canadian TV last week to talk about how much fun it is to be a crook. Except the whole possibility of prison part.

Marcum Officially Announces Purchase of UHY New England Locations

Marcum officially announced its take over of the UHY Advisors locations in New England that we mentioned last week.

We can only assume that the 150 employees at new Marcum offices passed the due diligence with flying colors. According to the press release, the new locations will make 15 total for Marcum with over 950 total employees and 117 partners.

Marcum LLP Expands Practice into New England

Members of New England Practices of UHY Advisors and UHY LLP Join Marcum

April 16, 2010, New York, NY- Marcum LLP, one of the largest independent public accounting and advisory services firms in the nation, announced that it has acquired the New England practices of UHY Advisors and UHY LLP effective April 16, 2010. Marcum will now have offices in three of New England’s major business markets – Boston, Massachusetts, and New Haven and Hartford, Connecticut.

The members of the New England practices of UHY Advisors and UHY LLP who are joining Marcum have a 30-year history in the New England market providing audit, tax and business consulting services in the construction, high technology, financial services, healthcare, manufacturing, not-for-profit and higher education arenas. Marcum LLP, with its outstanding reputation at the national and regional levels, has strong service niches in SEC registrants, alternative investment partnerships, family office services, business valuation, bankruptcies and receiverships and services for the government and public sector.

“Expansion into the New England region increases Marcum’s presence in the Northeast and offers our clients greater resources and new areas of expertise,” stated Jeffrey M. Weiner, Managing Partner of Marcum LLP. “The new locations tie in directly with our growth plan and will help us meet the changing accounting, tax and consulting needs of our clients.”

The entire 150 plus team from the New England practices of UHY Advisors and UHY LLP will join Marcum. With this latest development, Marcum now has more than 950 professionals, including 117 partners, in 15 locations throughout New York, New Jersey, Connecticut, Pennsylvania, Florida, Massachusetts and Grand Cayman.

“The members of the New England practices of UHY Advisors and UHY LLP are looking forward to the growth opportunities this transaction will bring in New England and beyond,” stated Anthony Scillia, who will serve as Managing Partner of Marcum’s New England Region. “Marcum’s geographic footprint, devotion to technical excellence and extensive range of professional services will bring added value to our existing clients and increase our ability to serve new clients in the New England area.”

Partners of Mazars, Weiser Approve Merger

Seems like a long time ago when we’re speculating about Mazars merger with Weiser. Oh wait. It was. Busy season had just started.

At the time, it sounded like the deal was all but guaranteed, just a small matter of the partners voting on the merger and shazam! Global 6 Contender!


Accountancy Age reports that “vast majority of partners on both sides agreed to the officially resides in the good old US of A as “WeiserMazars.” The article states that no layoffs will occur as a result of the merger. AA also reports that the new executive board will be meeting next month to discuss “driving growth from the newly combined business.” Whether this includes more mergers in the Western Hemisphere, we can only speculate.

The combined firm has 12,500 employees including 680 partners. According to Mazars’ most recent annual report, the firm had over €773 mil in revenues (just over a $1 bil) while Weiser had just over $135 million in revenues.

WeiserMazars spokeswoman Laura Kucera provided us with the firm’s press release:

Weiser LLP Joins Mazars Group Worldwide to Offer Clients International Services Opportunities

Mazars, an international group specialising in audit and advisory services and Weiser, an audit and advisory firm with a strong presence in the north east region of the U.S., have announced today that their businesses are to combine.

Partners from both entities have voted to incorporate 74 Weiser partners into Mazars’ international integrated partnership. Reflecting this new arrangement, Weiser will become a Mazars member firm and be renamed WeiserMazars LLP.

The deal marks a new stage in the Mazars’ international development, and means that it will have member firm offices in 56 countries, served by 12,500 professionals, including over 680 partners.

Mazars and Weiser, which employs more than 650 professionals and has annual revenues of $ 135m, have maintained a close and fruitful relationship for the last ten years via a joint venture agreement.

Patrick de Cambourg, Chairman and CEO of Mazars says: “We have worked with Weiser for ten years via a joint venture agreement. This combination is the result of our excellent relationship, our shared values and commitment to offering high quality services to our clients. This enhanced relationship is a natural development based on our mutual trust. We are delighted to welcome Weiser into our partnership. They are a first-rate firm with an excellent reputation in the New York area market. It is an important step in Mazars’ development and our clients will benefit from the formal combining of our services in the U.S. market.”

Douglas A. Phillips, Chairman of Weiser, added: “Serving our clients means helping them on a global level, beyond borders. This is why we made the choice to develop an international joint venture with Mazars in 2000. Today, we are happy to develop our relationship with Mazars by fully joining the Mazars international integrated partnership as we know that when like-minded professionals work together, they obtain excellent results.”

A video interview with Patrick de Cambourg and Douglas Phillips, is available. Please contact us if you wish to receive a copy.

Since it’s inception, Weiser has provided quality accounting, audit, tax and consulting services to clients in industries spanning, manufacturing and distribution, real estate, financial services, healthcare, nonprofit, media/entertainment and automotive, as well as to high net worth individuals and their families. The firm is headquartered in New York City.

Marcum Purchasing UHY New England Locations, Tax Quizzes to Be Given?

Web CPA is reporting that Marcum, the firm best known for quizzing potential employees, is purchasing three offices of UHY Advisors (Boston, Hartford and New Haven) effective April 16th.

The addition of the three locations would make fourteenfifteen total for Marcum, who currently only has a Greenwich office in New England. After the deal is closed, UHY Advisors will have fourteen locations well.


No financial details were reported but it is reported that all the UHY employees will be retained by Marcum, pending the successful passing of a rigorous quiz given in a room with no windows, air conditioning and a one hour time limit.

A Marcum spokeswoman declined to comment and a message with UHY was not immediately returned.

Marcum to Buy UHY Offices in New England [Web CPA]

Wherein We Speculate Wildly on the Merger of Accounting Firms Mazars and Weiser

Last week we told you about the on-going Global 6 talks between Mazars and Weiser. As we mentioned then, the copulation of the two firms would put them in the direct competition with the likes of Grant Thornton, BDO, RSM and hell, they may even snag some Big 4 clients.

Web CPA caught up with this story yesterday and we learned that not only has Mazars done business in the states with Weiser, they’ve also “relied on joint venture agreements with U.S. firms…Moss Adams and BKD.”

Maybe we’re going way out on a limb here, but if Mazars is making a play for Weiser (and it sounds like it’s all but a done deal) are they just trying to make a play on the whole IFRS bonanza that’s being unleashed OR are they looking to get closer to the likes of Moss Adams and BKD to expand their exposure and to become a bigger player in the States? Even if Mazars were to merge with Moss Adams and BKD the combined revenues still would be a drop in the bucket of the Big 4 but it would cement their presence in U.S. and allow them to compete even more directly for potential business here.

If we’re letting the cat out of the bag here, mucho apologies, just kinda thinking out loud.