M&A roundup: HBK and SD Mayer expand

Hill, Barth & King, a Top 50 Firm based in Canfield, Ohio, has acquired Acuity Human Resources, an HR consulting services provider. 

Acuity was founded in 2005 and specializes in guiding and supporting strategic business, organizational and HR functions. The deal aligns with HBK's strategy of expanding service offerings and delivering increased value to its clients and target markets.

"Acuity is a perfect complement to our existing capabilities," said HBK CEO and managing principal Thomas Angelo in a statement Monday. "Their expertise broadens the scope of services we provide, enabling us to better serve our clients. Beyond their professional credentials, Robert Floreak and his team are a cultural match for our firm and embody our brand values."

Financial terms of the deal were not disclosed. HBK ranked No. 50 on Accounting Today's 2024 list of the Top 100 Firms, with $144 million in annual revenue, over 100 partners and nearly 700 employees.

Acuity president Robert Floreak sees HR as a cornerstone of successful business operations.

"Every company, regardless of size, deserves access to world-class HR expertise," he said in a statement. "Having worked in cross-functional roles at Fortune 500 organizations, I've seen firsthand how exceptional HR practices drive productivity, efficiency, and effectiveness, ultimately helping organizations achieve both financial and non-financial objectives."

HBK COO Jeremy Hartzell spearheaded the merger.

"HR is inherently complex because its primary focus is people, and now more than ever, processes and technologies," he said in a statement. "Over the past decade, we've seen the HR function become more strategic and data-driven. A high-performing HR function is essential to addressing modern workforce challenges. Companies are navigating remote work, work-life balance, flexible scheduling and employee wellbeing as part of a broader, employee-centric approach. This acquisition enables us to offer a vital, high-quality service that aligns with the evolving needs of today's mid-market business owner-operators."

Last year, HBK split the leadership of its two entities: HBK CPAs & Consultants and HBKS Wealth Advisors. In 2023, HBK merged in Zapken & Loeb LLP, a firm in Woodbury, New York. In 2021, it merged in Vertical Solutions, a Pittsburgh-based managed service provider.

SD Mayer & Associates LLP, a firm based in San Francisco, is adding Bogdan & Frasco, LLP, a boutique accounting firm also based there. 

The Bogdan & Frasco team will relocate to SD Mayers offices, which are only two blocks away. SD Mayer is projected to have $20 million in 2025, while Bogdan will be coming in with $2.75 million in revenue.  The combined firms will have 100 employees, 11 partners and four offices. Bogdan came in with about 10 staff and two partners.

Bogdan & Frasco was founded in 1995 by two CPAs, Greg Bogdan and Alex Frasco, providing accounting and tax services such as estate and trust tax preparation, international taxation, tax planning and preparation, reviews and compilations, and more. SD Mayer was founded in 2012 by Stephen D. Mayer.

"Joining SD Mayer is a natural progression for our firm and clients," Bogdan said in a statement Monday. "SD Mayer's depth of resources, innovative approach, and community-minded ethos align seamlessly with the values we have instilled since founding the firm. This transition ensures that our clients will continue to receive the highest level of personal service, now enhanced by SD Mayer's expanded capabilities." 

As part of the combination, Bogdan will join SD Mayer as a partner, bringing over four decades of experience in estate planning, tax compliance, and financial consulting. He previously worked at firms such as Peat Marwick, Arthur Andersen, and Sugarman & Co. Craig Lewis, a long-time partner at Bogdan & Frasco, will also join SD Mayer as a partner. He specializes in estate and general tax planning, tax compliance, and employee stock option compensation and planning. He has worked at Bogdan & Frasco since 1998 and became a partner in 2014. He previously worked with Price Waterhouse. Co-founder Alexander Frasco is retired.

"We are thrilled to welcome Greg, Craig and the talented team from Bogdan & Frasco to the SD Mayer family," said SD Mayer managing partner Steve Mayer in a statement. "Their dedication to personalized client care and their impressive range of tax and accounting expertise perfectly align with our mission of helping clients succeed in business and life. Together, we'll offer an even broader array of services while maintaining the boutique-level attention our clients value."

In 2023, SD Mayer added the tax practice of Seifer, Murken, Despina, James & Teichman, a taxation law firm also based in San Francisco, and in 2021, it added TNT Inc. CPAs, a firm in Redwood City, California.