M&A roundup: BDO, Sikich expand

December 6, 2023 5:54 PM

BDO USA adds Flintech Holdings and Dynamics Beyond; Sikich acquires Golden Trail Advisers; BMSS Advisors & CPAs merges in Haddox Reid Eubank Betts PLLC; REDW adds Grove, Mueller & Swank; Dean Dorton merges in VonLehman; Eide Bailly adds RBTK; Savant Wealth Management acquires Peay & Associates and SwaimBrown Wealth Management; LGA merges in Sullivan; Ryan acquires Morrison & Head; and Hannis T. Bourgeois merges in Daenen Henderson.

BDO USA adds Flintech Holdings and Dynamics Beyond

The New York offices of Top 10 Firm BDO USA

BDO New York offices

Photo: Richard Falco

BDO USA, a Top 10 Firm based in Chicago, combined with Flintech Holdings LLC and Dynamics Beyond LLC, bolstering the firm's strategic partnership with Microsoft and its Microsoft Dynamic 365 and managed service capabilities.

Twenty-two Flintech and Dynamics Beyond full-time professionals will join BDO Digital, LLC, a subsidiary of BDO USA, as a result of the deal, which is expected to be completed on Dec. 16.

"Flintech and Dynamics Beyond share our drive for creating a competitive digital advantage for clients," said BDO USA CEO Wayne Berson in a statement Tuesday. "Both firms are leaders in the implementation of Microsoft solutions and add important knowledge and capabilities to our digital practice. Their extensive industry relationships will also help accelerate our work, so we can help our clients accelerate their digital journeys and transformations."

Flintech, based in Wilmington, Delaware, has been in business for over 30 years and focuses on implementation of Microsoft business applications in retail, wholesale distribution, consumer goods and manufacturing companies.

"Our award-winning Microsoft partnership helps clients identify and implement Microsoft technology to best fit their organization," said Flintech president Tom Patterson in a statement. "That tailored approach is an ideal match with BDO's service philosophy, where teams are focused on delivering solutions that are appropriately scaled and empower their clients. We're excited for the future and are confident that BDO Digital's resources and broad footprint will amplify our work."

Dynamics Beyond, based in Reno, Nevada, helps commerce and supply chain companies and focuses on Microsoft Dynamics 365, Power Platform and Azure.

"By building trusted relationships, we help optimize our clients' Microsoft Dynamics investments to enable greater long-term adoption and success," said Jason Greene, founder of Dynamics Beyond, in a statement. "We are incredibly proud of the client relationships we've fostered over the years, and we are excited to see how we can continue to help them thrive through the resources available at BDO."

BDO has also been building its digital practice's expertise with Oracle's NetSuite. Last November, BDO expanded its NetSuite capabilities by merging in AdaptaLogix LLC, an Ohio-based IT services and consulting firm for the pharmaceutical industry, adding 14 full-time professionals to its BDO Digital unit.

Sikich acquires Golden Trail Advisers

Sikich lobby in Naperville, Illinois

Photo: Matt Stout

Sikich, a Top 40 Firm based in Chicago, signed an agreement to acquire the operating assets of Golden Trail Advisers, a wealth management consulting firm based in Burr Ridge, Illinois.

Golden Trail Advisers offers investment management, retirement planning, business succession planning and other wealth management and tax planning services. The deal is scheduled to close on December 31.

"Our wealth management practice guides businesses, nonprofit organizations and individuals to make sound investments, improve financial health and meet long-term wealth goals," said Andrew Paoni, partner-in-charge of Sikich's wealth management practice, in a statement Wednesday. "The addition of Golden Trail brings talented, new experts to our team, enabling Sikich to better serve our clients and help them achieve financial well-being."

"We're excited to join Sikich and bring our experience and insight to the wealth management practice," said Mike Sedlak, founder and managing member of Golden Trail Advisers, in a statement. "Our combined skill set will be valuable for high net worth individuals and owners of closely held businesses. This partnership brings an exciting opportunity for growth, and Sikich's technology-enabled professional services model gives us the resources to offer new solutions to our clients."

Financial terms of the deal were not disclosed. The deal will add a total of three employees from Golden Trail, one of whom is joining Sikich as partner. Sketch has more than 1,700 employees, including 134 partners. Sikich earned $316.42 million in annual revenue and ranked No. 27 on Accounting Today's 2023 list of the Top 100 Firms.

Sikich has done a number of M&A deals over the past year. Last month, Sikich acquired Thornhill Financial in Northeast Ohio, and in October the firm's technology practice added a data and analytics offering and acquired Four Leaf LLC in Sacramento, California. Last December, Sikich acquired Vonya Global LLC, a consulting firm in Chicago. Last November, it acquired two other Chicago firms: O'Malley & Kwit, which specializes in taxes, and Accelerated Growth, an accounting, finance and technology consulting firm. In February 2022, it acquired Cotton & Co., an accounting firm in Virginia that specializes in government clients.

BMSS merges in Haddox Reid Eubank Betts

BMSS Advisors & CPAs, a Regional Leader based in Birmingham, Alabama, added Haddox Reid Eubank Betts PLLC, a firm based in Ridgeland, Mississippi, effective Dec. 1, 2023.

The combined firm will have 32 partners, 125 CPAs and approximately 322 employees, and the two firms will consolidate under the name BMSS, LLC. Together with Haddox Reid, the combined revenue for BMSS LLC will be $63.7 million and the firm expects to land in the upper 80th placement on national rankings of accounting firms. Ridgeland added seven partners, 35 staff and $9 million in revenue to BMSS, which had $47.4 million when it reached No. 8 on Accounting Today's Regional Leaders list for the Top Firms in the Gulf Coast region.

"As co-members in the BDO Alliance USA, our leadership team has developed a strong relationship with Haddox Reid over the years," said BMSS managing member Don Murphy in a statement. "Through our time together, we have come to see how we both reflect and complement our respective firm's culture, values and focus on an exceptional client experience. Our combined firms will provide opportunities for our employees, widen our client base, and expand the industries we serve."

BMSS Advisors & CPAs was established in 1991 by Keith Barfield, Don Murphy, and John Shank and has since grown into one of the Southeast's top advisory and accounting firms with five offices in three cities throughout Alabama: Birmingham (Colonnade, downtown and Riverchase), Gadsden and Huntsville. Haddox Reid's office will create the first BMSS location outside Alabama.

The firm specializes in several industries, including manufacturing, wholesale distribution, construction, technology, nonprofit and government contracting. In addition to tax planning and compliance and assurance services the firm boasts a robust business advisory practice area which includes transaction advisory, valuation, client accounting solutions, and CFO advisory services. BMSS also specializes in state and local tax, estate planning and employee benefit plan audits. The merger with Haddox Reid will bring specialization in the oil and gas industry while adding additional clients to the current industries BMSS serves.

BMSS is an independent member of the BDO Alliance USA, and Don Murphy has participated in a BDO managing partner roundtable with Haddox Reid's managing partner, Mike Gladney, for years.

"For many years, we have witnessed, admired and respected how BMSS has taken care of its people and its clients," said Gladney in a statement. "Its culture and primary mission mirrors ours. With our complementary skill sets and future goals, it just makes sense to bring the two firms together."

BMSS, formerly known as Barfield, Murphy, Shank & Smith, expanded in Alabama in 2018 by merging in Hindsman PC, a Gadsden-based CPA firm, and Hall Albright Garrison & Barnes in Huntsville.

REDW adds Grove, Mueller & Swank

Courtesy of REDW

REDW Advisors and CPAs, a Regional Leader based in Albuquerque, New Mexico, is expanding its footprint into the Pacific Northwest, by merging in Grove, Mueller & Swank, P.C., a firm based in Salem, Oregon, effective Dec. 1, 2023.

"As a nimble, growth-oriented firm, we are regularly looking for opportunities. Prior to this expansion into Oregon, our established office in Phoenix grew to more than 100 team members through a similar acquisition in 2022," said REDW managing principal Steve Cogan in a statement Monday. "Over the past 40 years, Grove, Mueller & Swank has provided quality service and innovative solutions to its clients, growing into one of the region's most respected accounting, tax, and consulting firms. Likeminded in our approaches to service, clients and our team members, REDW and GMS are a perfect cultural fit."

Financial terms of the deal were not disclosed. REDW ranked No. 6 on Accounting Today's 2023 Regional Leaders list for the Top Firms in the Southwest, with $42.25 million in annual revenue. The deal with GMS will expand the firm's employee base from a current headcount of 204 in Albuquerque in Phoenix to 321 team members worldwide.

GMS leadership and employees will continue in their current roles and at their current location in Salem, Oregon.

"The decision to align with REDW was based on several criteria, including our like-minded approach to service and culture," said GMS shareholder and chairman John Hawkins in a statement. "We are especially excited about the partnership as it will allow us to serve our clients more holistically, offering a full breadth of solutions including cybersecurity, HR consulting, and even wealth management from a deep bench of leading in-house experts."

In 2021, REDW added CPA Global Tax & Accounting, a firm in Scottsdale, Arizona.

Dean Dorton merges in VonLehman

Dean Dorton, a Regional Leader based in Lexington, Kentucky, is combining with VonLehman CPA & Advisory Firm, a firm based in Indianapolis, effective Jan. 1, 2024.

The firm will operate as Dean Dorton and provide accounting, business advisory and professional services from offices in North Carolina, Indiana, Ohio and Kentucky.

Financial terms of the deal were not disclosed. Dean Dorton earned annual revenue of $70 million, while VonLehman earned $30 million in revenue. VonLehman's 14 equity shareholders will become shareholders of the combined firm, along with Dean Dorton's 30 shareholders. The combined firm will have 550 staff members across six office locations.

"This merger is truly unique in that it combines two strong and healthy firms, one not dependent on the other, to redefine the client experience and the professional services landscape," said Dean Dorton president and CEO David Bundy in a statement last week. "Dean Dorton and VonLehman are trusted partners in their respective communities. We are excited to continue our legacy of serving our clients and potential partners through a truly unique and relationship-driven client experience."

Dean Dorton, formerly known as Dean Dorton Allen Ford, has roots dating back to 1921 and provides audit, tax, business management, consulting and technology solutions to companies from offices in North Carolina and Kentucky. VonLehman, established in 1946, offers assurance, accounting, tax, and progressive business advisory services for closely-held businesses, nonprofits and governmental entities from offices in Kentucky, Ohio and Indiana.

"We couldn't be more excited for this opportunity," said VonLehman president Adam Davey in a statement. "This merger is equally beneficial for our clients and our team. The synergies between our firms are palpable, and we're excited to introduce our new service lines across our region. This is a mutually beneficial relationship where both firms provide unique value. It's a great move from every perspective." Following the merger, Adam Davey will be Dean Dorton's Greater Cincinnati market leader.

In 2021, Dean Dorton acquired Breakpoint Technology, a data analytics and technology collaboration practice based in Louisville, Kentucky, and Penny Longobardo & Co. in Raleigh, North Carolina. VonLehman acquired Sherck, Hussey, Johnson & McNaughton in Indianapolis in January of this year.

Eide Bailly adds RBTK

Eide Bailly, a Top 20 Firm based in Fargo, North Dakota, has merged in RBTK, a firm based in San Diego, California.

The deal will expand Eide Bailly's footprint in California and client base in the construction industry.

Financial terms of the deal were not disclosed. Eide Bailly ranked No. 19 on Accounting Today's 2023 list of the Top 100 Firms. The firm earned revenue of $617 million over the past year and has over 3,300 staff members and more than 350 partners.

"We are proud to welcome the RBTK team to our firm and look forward to the impact we can make together in the future," said Eide Bailly CEO and managing partner Jeremy Hauk in a statement Tuesday. "With their recognition as a leader in the construction industry and the San Diego member firm of Construction Industry CPAs and Consultants (CICPAC), they will be a fantastic addition to Eide Bailly."

"The decision to join forces with Eide Bailly was easy as our values align seamlessly," stated RBTK partner Scott Trendel. "We're thrilled that this union will allow us to stay true to our current culture while also providing exciting opportunities for collaboration, additional resources for our clients, and expanded benefits and opportunities for our employees."

Eide Bailly recently announced it's adding High Plains Technology, a technology solutions company based in Sioux Falls, South Dakota, effective Jan. 8, 2024. Last month, Eide Bailly added Secore & Niedzialek PC, a CPA and tax planning firm based in Phoenix. This fall, Eide Bailly also merged in Raimondo Pettit Group, a firm with three locations in Southern California. In August, Eide Bailly announced it was expanding in California and Washington state by adding another firm, Bessolo Haworth. In July, Eide Bailly added Spectrum Health Partners, a financial advisory services firm based in Franklin, Tennessee, that focuses on the health care industry and King & Oliason in Seattle.

Savant Wealth Management acquires Peay & Associates and SwaimBrown Wealth Management

Peay & Associates and SwaimBrown Wealth Management offices in Clinton, South Carolina

Savant Wealth Management, a registered investment advisory firm based in Rockford, Illinois, that also offers corporate accounting, tax preparation, payroll and consulting through its Savant Tax & Consulting affiliate, made two acquisitions in South Carolina: Peay & Associates LLC, a CPA firm providing tax and accounting services to individuals and businesses, and its associated RIA firm, SwaimBrown Wealth Management, with assets under management of approximately $146 million.

Last month, Savant also announced plans to acquire $2.2 billion Alabama-based Bridgeworth Wealth Management before the end of 2023.

"The Peay/SwaimBrown deal marks our second combination purchase of 2023, and our sixth acquisition overall of a tax and accounting business," said Savant CEO Brent Brodeski in a statement last Friday. "We have leaned into acquiring CPA-led firms as part of our strategy because it helps differentiate Savant as a firm that has capabilities beyond basic financial planning. In addition, with the known shortage of CPAs in the U.S., this strategy strongly positions us to provide integrated wealth management and tax services to our clients."

Principal owner Jay Peay founded both Peay & Associates and SwaimBrown Wealth in 2005. He and Ashley Tate, a minority owner in the accounting firm, will join Savant as member owners. Another five employees of the combined firms will become employees of Savant.

"We were looking for a partner that could help us expand our service offerings to our growing client base in South Carolina," said Peay in a statement. "Savant has the resources we need to better serve both our clients and our employees. Savant already has an office in Columbia, S.C., so we're looking forward to expanding the firm's presence here in the state."

Financial terms of the deal were not disclosed. Peay has five employees, and SwaimBrown has three (but Jay Peay is listed in both).

The acquisitions of Peay & Associates/SwaimBrown and Bridgeworth Wealth Management will bring Savant's national footprint to 14 states and 38 offices. Previous acquisitions this year included Basil Financial Group in Chicago, Capital Directions in Atlanta, Domani Wealth in Lancaster, Pennsylvania, Paragon Financial Advisors in Columbia, South Carolina, The Relaxing Retirement Coach in Wellesley, Massachusetts, and R.F. Book & Associates and Wealth Management Group in Dover, Delaware.

LGA merges in Sullivan

LGA LLP, a Regional Leader based in Woburn, Massachusetts, has added Jonalyn C. Sullivan, CPA, LLC, a firm based in Amesbury, Massachusetts.

Sullivan's firm brings over 30 years of experience in financial statement reporting, tax planning and compliance, and accounting solutions to LGA.

Financial terms of the deal were not disclosed. Jonalyn Sullivan will join as a tax partner at LGA, and several members of her team will be joining as professional staff. The addition brings LGA to a total of 26 partners and 150 team members and enhances its presence in New England. LGA ranked No. 10 on Accounting Today's 2023 Regional Leaders list of the Top Firms in New England, with $24.63 million in annual revenue.

"We are thrilled to welcome the Jonalyn C. Sullivan, CPA, team into the LGA family," said LGA managing partner John Geraci in a statement last Friday. "Jonalyn and her team's expertise and client-first approach perfectly complement our values and services. This merger strengthens our position in the New England market and underscores our commitment to providing outstanding service and value to our clients."

Sullivan expressed her hopes about joining forces with LGA. "Aligning with LGA presents an exciting new chapter for us," she said in a statement. "We are eager to leverage LGA's extensive resources and expertise to provide even greater value to our clients. Our shared ethos of nurturing strong client relationships and delivering top-notch services makes this merger a natural fit."

In 2021, LGA merged in ALL CPAs, a firm in Chestnut Hill, Massachusetts.

Ryan acquires Morrison & Head

G. Brint Ryan, chairman and CEO of Ryan

Ryan, a Dallas-based tax services and software provider, has acquired Morrison & Head, a property tax consulting firm with offices in Austin and Houston.

The acquisition adds Morrison & Head partners Steve Laas and Kelli Morrison as principals in Ryan's Property Tax practice. Morrison & Head co-founder Chet Morrison will also be joining Ryan to help with the transition.

"Morrison & Head is a well-established firm with a strong reputation in the property tax space in Texas," said Ryan chairman and CEO G. Brint Ryan in a statement Monday. "The addition of Morrison & Head further expands Ryan's market presence and adds a talented group of property tax professionals to our industry-leading team. We look forward to offering our new clients a full suite of innovative tax services and software solutions to further enhance their tax-saving opportunities."

Financial terms of the deal were not disclosed. Ryan ranked No. 8 on Accounting Today's 2023 list of the Top Tax Firms, with $820.08 million in annual revenue.

"I feel confident entrusting our clients to Ryan," said Morrison in a statement. "Ryan is widely known as a leader in client service, so our clients can expect the same level of attention to detail, prompt communication, and industry-leading results they received from us. Our team members will also be able to take advantage of additional career advancement opportunities at Ryan and benefit from the Firm's award-winning work culture."

In July, Ryan acquired MJI Consulting, a property tax advisory firm with clients in Western New York and Connecticut. In April, it acquired RETC Group, , a firm that specializes in the property tax space in North Texas. Last year, Ryan acquired the OneSource Property Tax acquisition from Thomson Reuters, MacRostie Historic Advisors in Washington, D.C., and Tax Advisory Services Group in Houston.

Hannis T. Bourgeois merges in Daenen Henderson

Hannis T. Bourgeois, LLP, CPAs and Business Advisors, a firm based in Baton Rouge, Louisiana, is adding Daenen Henderson & Co. CPAs, of Alexandria, Louisiana.

As part of the deal, DHC's 11 team members, including four partners, will join HTB, allowing the firm to expand its accounting, tax, assurance and consulting practices throughout central Louisiana.

In addition to Baton Rouge, HTB also has offices in New Orleans, Denham Springs and Hammond, Louisiana.

DHC was founded in 1989 and delivers accounting, tax and consulting services. DHC managing partner identified HTB as the strategic partner to continue her firm in the future.

"We conducted an extensive search within our region looking for an opportunity like this," she said in a statement last Friday. "HTB exceeded our hopes for a firm we can combine with and continue the tradition we have for providing innovative and insightful services to help clients and their businesses prosper as trusted advisers. As you are aware, finding and retaining excellent people is a constant challenge. A larger organization will also mean our associates will benefit from even more and stronger career opportunities."

Financial terms of the deal were not disclosed. HTB dates back to 1924 and has over 150 team members.

"For almost 100 years, HTB has delivered bottom line value to our clients throughout changing business landscapes and market conditions," said HTB managing partner Jay Montalbano in a statement. "Serving clients with a high level of personalized service and recruiting employees who understand our culture has been core to HTB's growth. We're excited to welcome Daenen Henderson & Company to the HTB family and expanding our services into central Louisiana."