M&A roundup: CBIZ, Bowers, Hiline and Kruggel Lawton expand

CBIZ acquires Erickson, Brown & Kloster

Courtesy of CBIZ

CBIZ Inc., a Top 25 Firm based in Cleveland, has acquired Erickson, Brown & Kloster LLC in Colorado Springs, Colorado, effective Feb. 1, 2024. In conjunction with the deal, Mayer Hoffman McCann PC, a national independent CPA firm that works closely with CBIZ, acquired the attest assets of EBK.

EBK provides tax and accounting services to a variety of different types of businesses, including automotive, wholesale, medical services, real estate, manufacturing and nonprofit organizations.

"We're excited to combine our current successful Denver operations with EBK to create an even stronger team to serve clients across Colorado Springs, Denver and all of Colorado," said CBIZ president and CEO Jerry Grisko in a statement Wednesday. "These two highly respected teams will work closely together for maximum benefit for both our clients and our team members. We are pleased to welcome Phil Erickson, Jeff Rosacker and the entire EBK team to CBIZ."

EBK has 50 employees and earned approximately $8.9 million in revenue in 2023. It was founded in 1984. CBIZ has over 7,000 employees and earned $1.65 billion in 2023, as of Sept. 30, 2023. CBIZ and MHM ranked No. 12 on Accounting Today's 2023 list of the Top 100 Firms. Financial terms of the deal were not disclosed.

"Our firm has always looked for ways we can provide greater value to our clients, and purpose-filled careers for our team members," said EBK co-managing partner Phil Erickson in a statement. "Joining CBIZ is incredibly exciting because this allows us to meet both objectives. Our team of dedicated professionals now have immediate access to enhanced tools, resources and expertise that would have taken decades of time and countless dollars for us to develop on our own."

Last February, CBIZ and MHM acquired Somerset CPA and Advisors, a Top 100 Firm based in Indianapolis. In January 2022, it acquired Marks Paneth, a Top 50 Firm based in New York. In 2021, it acquired Shea Labagh Dobberstein, a firm in San Francisco, and Berntson Porter & Co. in Bellevue, Washington.

Bowers merges in Kasperski Dinan & Rink

Courtesy of Bowers CPAs & Advisors

Bowers CPAs & Advisors, a firm with offices in Syracuse, Rochester and Watertown, New York, has expanded its presence in Rochester by merging in Kasperski Dinan & Rink CPAs, effective Jan. 1, 2024.

Financial terms were not disclosed, but Bowers is a $20 million firm. Six partners from Kasperski Dinan & Rink are joining Bowers as partners — CPAs Richard Kasperski, Tracey Rink, Edwin Veltz, Michael Dinan, Scott Gerken and Ryan Kretchmer — and three other employees. Bowers now has a total of 130 employees and 31 partners.

Kasperski Dinan & Rink CPAs was founded 20 years ago and Bowers was established in 1977. "Joining Bowers will allow us to expand our operational capacity, along with providing additional resources to assist our current and future clients," Kasperski said in a statement Monday. "We see a deep value alignment with Bowers and a matched level of commitment to clients, service, and relationships that have guided our practice over the decades. Although our name was updated to Bowers, Tracey and I will remain stationed at the office, as partners, supporting our clients and our team as we enter a new era."

Bowers also announced the promotion of Kretchmer to the position of partner in the Rochester office. He is a Rochester native and graduate of SUNY Geneseo with more than 25 years of experience as a tax professional. The expansion will provide greater access to interns and new hires from SUNY Geneseo, SUNY Brockport, Keuka College, St. John Fisher, RIT, Nazareth, and the University of Rochester. Bowers has an internship program in the Syracuse and Watertown offices and plans to bring the same experience to Rochester in the spring with the hire of seven interns from these local colleges.

In 2016, Bowers merged in Caswell & Associates, expanding the firm's presence in upstate New York.

Hiline acquires Calculate

Hiline CEO Matt Gardner

Hiline, a provider of financial-operations-as-a-service based in Syracuse, New York, has acquired Calculate, an outsourced accounting and finance firm in New York City that supports financial processes at emerging companies.

Hiline's 22 employees will be joining Calculate's 32 employees, for a total of 54 Hiline employees in the future. Financial terms and revenue figures were not disclosed.

Hiline plans to bolster its outsourced accounting, human resources, tax and payroll services with additional talent and technology while expanding its client base and geographic presence.

"We're sending a clear signal to the market about the growing need for outsourced financial operations," said Hiline co-founder and CEO Matt Gardner in a statement Thursday. "As businesses navigate challenging headwinds such as rising rates and a more conservative fundraising environment, the demand for outsourced services and fractionalized financial support is evident. High-growth companies can now grow efficiently without the time and cost of building an in-house finance team. Merging Calculate with Hiline strengthens our established position as we continue to challenge the traditional accounting firm model as a financial-operations-as-a-service offering."

Calculate's team includes finance talent with backgrounds from financial institutions and accounting firms. By leveraging Calculate's expertise, Hiline hopes to scale up its operations and strengthen its CFO and FP&A-led advisory services.

"Together, we will aim to further empower founders and management teams with insights and financial clarity that scale to meet the diverse needs of today's high-growth companies," stated Alison Cuzzolino of Calculate's executive team, who is assuming the position of vice president of operations at Hiline. "Matt's leadership and vision reflect our shared commitment to help modern companies make better, more timely decisions through a combination of technology solutions and human expertise."

The acquisition follows on the heels of an investment in Hiline by Red Iron Group in September.

"Calculate has built an outstanding team of professionals focused on delivering differentiated value to their customers," said Red Iron Group co-CEO Ben Bisconti in a statement. "We are excited to see the Hiline and Calculate teams combine as an important step in expanding the resources and capabilities that distinguish Hiline in this market. We are proud to continue our partnership with Matt and the entire team."

Kruggel Lawton to add Cole Gavlas

Left to right: Adam Schwelnus, Alex Schaeffer, Dan Gavlas, Jeff Cole, Barry Hall and Patrick Lee of Kruggel Lawton and Cole Gavlas.

Courtesy of Kruggel Lawton

Kruggel Lawton CPAs, a Regional Leader firm based in South Bend, Indiana, said Cole Gavlas PC, a firm based in Portage, Michigan, will be joining it effective June 1, 2024.

The deal will add 11 new professionals and three partners to Kruggel Lawton, expanding the firm's reach in southwest Michigan. The Portage location will be the sixth Kruggel Lawton office, and the firm's second in Michigan.

Financial terms of the deal were not disclosed, but Kruggel Lawton estimates its revenue will be around $25 million and the combined firm will have roughly 150 staff. Kruggel Lawton ranked No. 40 among Accounting Today's Regional Leaders in the Great Lakes in 2023, with $18.75 million in annual revenue.

Kruggel Lawton & Co. was founded in 1956 and offers assurance, tax compliance and consulting, estate planning, business valuation, business accounting and executive search services.

"We are delighted to have the Cole Gavlas team join Kruggel Lawton," said managing partner Barry Hall in a statement Tuesday. "Combining our two very talented teams will create new opportunities to serve the Portage/Kalamazoo area. Cole Gavlas has an outstanding reputation for excellent client service and quality of work which will increase our depth and expertise across several service lines."

Cole Gavlas was originally called Cole and Co. PC when it was founded in 1991 by Jeffrey Cole. He began working with clients throughout southwest Michigan in Kalamazoo and Portage. Dan Gavlas joined the team in 1999 and was promoted to partner two years later. In 2009, the firm changed its name to Cole Gavlas PC and moved to its current offices in Portage. As the firm continued to grow, it added Jason Martin, who joined the leadership team in 2017. The firm provides a wide variety of accounting services including tax, business advisory, financial management, and other advisory services. It has been a member of the BDO Alliance for more than 22 years. Kruggel Lawton is also a member.

"We are excited to be joining Kruggel Lawton," said Dan Gavlas. "The partnership between our two firms feels very natural because our values, culture, and approach to client service are so closely aligned. This is a great opportunity not only for our team but for our clients, and I look forward to continuing to serve our communities together."

Effective June 1, Kruggel Lawton will have offices located in South Bend, Elkhart, and Goshen, Indiana, Portage and St. Joseph, Michigan, and Knoxville, Tennessee.

M&A roundup: CBIZ grows in Colorado, and more

CBIZ acquires Erickson, Brown & Kloster

Bowers merges in Kasperski Dinan & Rink

Hiline acquires Calculate

Kruggel Lawton to add Cole Gavlas