Hire
Offshore
Staff Now
Mike Goossen, CPA-1704216040.webp)
The realm of an accounting industry synonymous with numbers, has experienced its own set of numerical fluctuations over the past few decades, especially between 2000 to 2010. A pronounced acceleration in mergers and acquisitions (M&A) during this period reshaped the industry's landscape. Accounting firms, in their pursuit of growth and market dominance, undertook strategic measures. These ranged from expanding geographical footprints to venturing into specialized service lines and intensifying their stronghold in distinct industry sectors.
While the early 2000s were marked by this frenzied activity, the current decade, particularly 2023, showcases a mature, yet dynamic M&A environment. The industry giants, especially those nestled within the Top 100 echelons, are not merely eyeing mergers within their traditional domain but are diversifying their M&A portfolio. Ventures into realms like client accounting services, offshore staffing, wealth management, and cybersecurity are increasingly becoming the new norm.
The CPA firm mergers are a strategic move to pool expertise, resources, and client bases. This not only amplifies technical capabilities but also enables firms to navigate the evolving regulatory landscape more effectively. Here are some of the latest mergers and acquisitions news in the accounting sector, which is crucial for industry players. Timely information on strategic alliances and shifts in market dynamics empowers firms to make informed decisions and adapt their strategies accordingly.
1. Stephano Slack Joins Forces with Morgenstern Waxman Ellershaw on Dec 21, 2023: Stephano Slack, headquartered in Wayne, Pa., with a reported net revenue of $13.4 million in FY22, announces its strategic merger with Morgenstern Waxman Ellershaw.
2. Aprio Expands Operations into Texas on Dec 19, 2023: Aprio continues its growth momentum, marking its presence in Texas with a recent expansion.
3. Hughes Pittman & Gupton Collaborates with EisnerAmper on Dec 14, 2023: Hughes Pittman & Gupton and EisnerAmper join hands, fostering a partnership that promises innovation and synergy.
4. Sikich Acquires CLA’s Federal Government Division on Dec 14, 2023: Sikich bolsters its service offerings by acquiring the Federal Government Practice division from CLA.
5. Honkamp Merges with a St. Louis-based Firm Dec 12, 2023: Honkamp strengthens its market presence through a strategic merger with a prominent St. Louis-based firm.
6. Ryan Broadens Its Portfolio with Acquisition of Morrison & Head Dec 7, 2023: Dallas-based tax services and software firm Ryan, finalizes the acquisition deal with Morrison & Head, expanding its service spectrum.
7. BMSS Integrates Haddox Reid Eubank Betts on Dec 7, 2023: BMSS strengthens its capabilities by integrating Haddox Reid Eubank Betts into its fold.
8. RS&F will acquire Mister Burton and Associates, LLC on Dec 7, 2023: RS&F gears up for a significant expansion with its planned acquisition of Mister Burton and Associates, LLC.
9. Sikich’s Wealth Management Division was enriched by Golden Trail Advisers on Dec 7, 2023: Sikich amplifies its wealth management capabilities with the strategic inclusion of Golden Trail Advisers.
10. RBTK Merges with Eide Bailly on Dec 6, 2023: RBTK and Eide Bailly announced a merger, creating a unified entity poised for growth and innovation.
1. Client: Accounting firm mergers have become integral to the industry's growth strategy. Firms looking to expand their client base and leverage the current strength of their services, talent, and expertise would normally always be open to M&A opportunities. Many larger firms have a geographic growth plan; for example, firms in Manhattan may seek to expand into Long Island, New Jersey, or Westchester. In addition, some firms believe a presence in certain markets is necessary for their brand’s prestige. Advances in technology have made it easier for firms to operate in a multi-office environment; for example, Arthur Andersen recently helped a firm in the Washington, D.C., area merge with a firm in Florida.
2. Competition is tight among the largest accounting firms as they look to set themselves apart in an industry dominated by six big brand names. (Arthur Andersen, Coopers & Lybrand, Deloitte & Touche, Ernst & Young, KPMG, PWC)
3. Technology that makes accounting more efficient and state-of-the-art business tools that wow clients are increasingly the differentiators. It’s a technology and audits moving to artificial intelligence and machine learning and robotics, and concern about a major reduction in audit fees. Also, this next wave of technology won’t be cheap, and firms will need to make much more significant investments than in the past. So, this fixed tech investment can be absorbed over a larger entity and definitely have some synergic advantages. The long-term strategy for your firm includes the possibility of a merger; you should continue to invest in keeping your technology up to the best practices in the profession — or you need to be at least open to adapting to the more robust technology environment your future merger partner uses.
4. Talent is in short supply in the accounting profession; therefore, firms are increasingly using mergers to add talent for growth. The merger not only adds depth of staff and partners, but it can also create opportunities for growth, leading to better opportunities for internal promotion of talent.
5. Increased Billing & Revenue: For instance, partner billing rates in smaller firms tend to be lower than in larger firms. Many acquiring firms assume this reflects an overall problem with pricing for services in that firm. However, we have found that lower partner billing rates often are the result of partners' performing tasks that larger firms would assign to lower-level staff. By taking advantage of the better leverage a large firm possesses, the smaller firm's partners should be able to raise their billing rates without a dramatic impact on fees for that firm's clients.
6. The Role of Offshore Accounting Services: A noteworthy trend in this context is the burgeoning interest in offshore accounting services, particularly in countries like India. The value proposition is compelling: cost-efficiency coupled with access to a vast talent pool. Companies like EisnerAmper, Aprio, BDO, and Baker Tilly have already established offshore delivery centers in India, realizing the myriad benefits.
Phil Whitman, CPA is President of Whitman Business Advisors and has been helping accounting firms with M&A & consulting for the last 25+ years. Phil says:
You can watch Phil’s complete video here.
Well, the world has gone remote after the pandemic, and accounting firms are no different. So working remotely, whether from ‘Boston or Bangalore’, ‘Miami or Mumbai’, or ‘New York or New Delhi’, is all the same, as long as your staff has the right skill set, and attitude and speaks the same language. Offshore staffing which may start as a stop-gap arrangement but also a potential long-term solution. It can help to build capacity, gain a competitive advantage, and also reduce your workload.
India is the country to choose for all offshoring services, whether it's accounting, payroll, information management, legal services, or other services. Accounting offshoring has been a rising industry in Asian countries such as India. After all the reasons for this accounting sector, India has been the most preferred destination when it comes to remote accounting work. India being the;
Most commonly spoken language by Indian workforce, British influence & knowledge-driven economy. Some of the common examples of big-shot Indian CEOs in top multinationals.
All the above firms have offshore offices in India.
For the last 9 years, we at ENTIGRITY have helped 725+ accounting firms in building their dedicated offshore team that works from our secured office in India.
Offshore Staffing Solution helps you save on costs, which you would have spent when hiring in-house employees and improves service delivery capability. We have successfully placed 3000+ offshore employees for accounting firms. We exclusively work with accounting firms and help them hire accountants, tax associates, tax seniors, auditors, admin support staff, managers, and all other accounting and non-accounting positions.
Entigrity™ is a trusted offshore staffing partner for 725+ accountants, CPAs, and tax firms across the US and Canada. With a flexible and transparent hiring model, the company empowers firms of all sizes to acquire skilled accounting, bookkeeping, and tax preparation staff. As a firm 'run by accountants, for the accountants,' Entigrity ensures precise alignment with the hiring needs of accounting firms, providing staff under your control and management, minimizing concerns about compliance, payroll taxes, overheads, or benefits. Entigrity is a proud independent member of the BDO Alliance USA. We have collaborated with IMA to train and upskill 5,000 Professionals in India. We were also recognized as one of the "Dream Companies to Work For" and won the "Great Place to Work® Certified™" in the accounting offshoring industry.
Mike is a CPA and has over 30 years of experience in thought leadership and mentoring. His experience and constant efforts in solving prevalent issues of accounting industry is his biggest stand out point. He has been instrumental in mentoring scores of entrepreneurial accounting and finance professionals to get up on their feet and convert their practices into successful ones. He has authored a book called 'Principles of High Performance Leadership'
+1-646-827-4348
+1-646-827-4348
+44-(0)20-3355-7340
-1712313802.webp)
-1698666312.webp)
