M&A roundup: Crowe and PKF Smith Cooper expand

April 3, 2024 4:28 PM

Crowe plans to add Belt Harris Pechacek; and PKF Smith Cooper acquired BLB Advisory.

Crowe adds Belt Harris Pechacek

Crowe LLP, a Top 25 Firm based in Chicago, entered into an agreement with Belt Harris Pechacek LLLP, a Houston-based firm that provides audit and support services to local Texas governments, for the BHP team to join Crowe. The transaction is expected to close in the next 30 days, and promises to expand the Crowe's presence in Texas, particularly with public sector clients. Crowe's audit and assurance business unit includes over 1,400 professionals.

"BHP is a well-respected firm in the Texas market with a significant presence serving the public sector," said Wendy Cama, managing partner of audit and assurance for Crowe, in a statement Tuesday. "At Crowe, we have ambitious growth plans, including expanding in key growth markets such as Texas, and our decisions are always grounded by our core values of care, trust, courage and stewardship. We're very excited to welcome the BHP team to the Crowe family."

Financial terms of the deal were not disclosed. Crowe ranked No. 12 on Accounting Today's 2024 list of the Top 100 Firms, with $1.375 billion in annual revenue, over 500 partners and approximately 6,300 employees.

"Since the inception of our firm, BHP's goal has been to be the best in Texas at auditing local governments, including cities, counties, school districts, universities, and other special purpose districts," said BHP LLLP managing partner Robert Belt in a statement. "Crowe has an impeccable reputation as a market leader and our existing clients will benefit from an expansive offering of professional services."

Allan D. Koltin, CEO of Koltin Consulting Group, who advised both firms on the transaction, commented, "BHP is one of the preeminent governmental audit firms in the state of Texas and was sought after by many acquirers. They chose Crowe because of their outstanding reputation and additional resources that they can provide to BHP's clients. The deal will also provide great growth opportunities to BHP's associates and accelerate their career paths."

In 2021, Crowe added Briggs & Veselka, a Top 100 Firm based in Houston, and Upaya - The Solution Inc., a technology firm in Palo Alto, California.

PKF Smith Cooper acquires BLB Advisory

Dean Nelson, partner and head of business recovery and restructuring at PKF Smith Cooper

PKF Smith Cooper, a firm based in the Midlands, U.K., has acquired BLB Advisory Limited, a firm based in the West Midlands that specializes in helping businesses with restructuring, turnaround and insolvency.

BLB's director and owner Brett Barton and seven team members are joining PKF Smith Cooper. His new role at PKF Smith Cooper will involves deliver his current services in Coventry, Hereford and Worcester, U.K., in addition to supporting the firm's business recovery and restructuring partners — headed by Dean Nelson with Michael Roome and Nick Lee — in shaping and driving the firm's ambitious expansion plans across the Midlands and the U.K.

Financial terms of the deal were not disclosed. PKF Smith Cooper has 15 partners and 312 staff members while BLB Advisory has one partner and seven staff.

"I am excited to be joining the team at PKFSC and to expand their offering in the West Midlands," Barton said in a statement Wednesday. "There are many synergies between our businesses, and I believe that, within the PKFSC brand, I will be able to provide advice and guidance to businesses across the region that is unparalleled."

"We are thrilled to welcome Brett and his team to PKF Smith Cooper as we embark on this new era for our business recovery services," Nelson said in a statement. "From initial conversations with Brett, it was clear he was aligned with our recovery first approach, and that his team shared our passion for helping business owners in distress to secure the best possible outcome for the future."