M&A roundup: BDO, McCarthy, Baratz and KNAV expand

Details: BDO USA, a Top 10 Firm based in Chicago, added Culbert Healthcare Solutions Inc., a Woburn, Massachusetts-based management consulting firm that advises hospitals, academic medical centers and large physician group practices.

The deal will expand BDO’s management advisory capabilities, especially in the health care industry. It is expected to be completed on Dec. 16.

Financial terms of the deal were not disclosed. BDO ranked No. 7 on Accounting Today’s 2021 list of the Top 100 Firms, with $1.8 billion in annual revenue.

“Culbert will help us continue to identify ways for healthcare leaders to improve their financial, clinical and digital performance and build more resilient organizations,” said BDO USA CEO Wayne Berson in a statement Tuesday. “Their services and relationships will strengthen and deepen our advisory offerings for BDO healthcare clients and grow our firm’s health care practice.”

Culbert Healthcare was founded in 2006 and provides management, clinical operations and health IT consulting services to clients in 45 states. It will become part of the BDO Center for Healthcare Excellence & Innovation and its employees will work out of BDO’s offices in Boston. Culbert is a member of the American Medical Group Association, the Healthcare Information and Management Systems Society, the Healthcare Financial Management Association, and the Medical Group Management Association.

"At Culbert, we are passionate about client service and creating a people-first culture, which aligns seamlessly with BDO USA’s purpose and core values,” said Culbert CEO Robert Culbert in a statement. “Our team can now leverage BDO’s deep healthcare resources and national presence while maintaining the client-first mentality of our boutique firm.”

In October, BDO merged in Lowery Asset Consulting, a Chicago-based investment consulting firm. In fiscal year 2021, BDO combined with nine other firms, including Morrison, Brown, Argiz & Farra in January and digital marketing firm DemandGen International in March, and added new strategic offerings to its existing services. The firm has 836 partners and over 8,503 employees.

Details: McCarthy & Com. PC, a firm based in Lafayette Hill, Pennsylvania, is adding Borislow, Factor & Kaufmann LLC, a firm in Blue Bell, Pennsylvania, effective Jan. 1, 2022.

The combined firm will have nearly 50 professionals serving clients across southeastern Pennsylvania and the Mid-Atlantic states. McCarthy has 37 employees, including six partners, while BF&K has 10 employees, including three partners.

Financial terms were not disclosed, but the revenue for the combined firm is approximately $11 million in 2021 with significant growth expected in 2022. Ira Rosenbloom of Optimum Strategies advised the firms on the merger.

“We have been seeking the right strategic partner to add more knowledgeable talent to our firm. Borislow, Factor & Kaufmann (BFK) has the right mix of resources, professional expertise, and passion for client service,” said McCarthy & Co. managing partner Martin McCarthy in a statement Friday. “We best deliver value to our clients by having outstanding talent and broadening our service platform. The addition of the BFK team expands our tax and accounting depth.”

McCarthy & Co. has been included on the Philadelphia Business Journal’s List of Accounting Firms for the past four years and named one of the Best Accounting Firms to Work For by Accounting Today every year since 2019.

Borislow, Factor & Kaufmann dates back over 30 years ago and provides accounting, tax and financial services to clients.

“McCarthy & Co. shares the same values and unwavering commitment to exceptional personal service as we do,” said Borislow, Factor & Kaufmann managing partner Jeffrey Factor. “Business owners and executives rely on both of our firms for effective operational and growth strategies. Our reputation for value is built on results. The same is true for McCarthy & Co.”

The BFK employees from Blue Bell will be moving into McCarthy’s offices in nearby Lafayette Hill, Pennsylvania. McCarthy also has an office in Tinton Falls, New Jersey.

Details: Baratz & Associates PA, a firm based in Marlton, New Jersey, has added Metter & Co. of Conshohocken, Pennsylvania, expanding Baratz’s footprint in Southeastern Pennsylvania.

Financial terms were not disclosed, but the projected revenue of the combined firm is approximately $9 million. Baratz has 65 employees, including 10 partners, while Metter has 5 employees, including one partner. Ira Rosenblum of Optimum Strategies helped arrange the merger.

“With a successful merger just last November, we are pleased to continue our growth plan and add Stan and his team to our Pennsylvania base,” said Baratz managing partner Raymond Giunta, in a statement Monday. “We share similar cultures and commitment to our clients. Our synergies in business consulting and tax planning will allow us to further enhance our client experience.”

Baratz & Associates is a regional accounting and consulting firm founded in 1982. The firm provides accounting, auditing, business acquisition, healthcare consulting, litigation support, tax planning and valuation.

Stan Metter established his firm in 1983. “I am thrilled by the opportunity to join Baratz & Associates,” he said in a statement. “We look forward to working with a larger team in order to maximize the benefits to our clients.”

Metter’s firm focuses on tax planning and business consulting. After the merger, the firm’s accountants and staff will be located in Baratz’s Fort Washington location, doubling the staff in that office.

Baratz is headquartered in Marlton and has two other offices in Bridgewater, New Jersey, and Fort Washington, Pennsylvania. Metter is based in Conshohocken, but the team will be moving into the Baratz office in Fort Washington.

Separately, Michael Lehner also joined Baratz & Associates as director of forensic, litigation and valuation services. He will mainly work out of the Bridgewater location while also expanding his reach into the Delaware Valley.