M&A yields major gains in SEC clients in Q4

Los Angeles-based GreenGrowth CPAs topped the charts for the new Securities and Exchange Commission clients in the fourth quarter of 2023.

The firm added a whopping 30 new clients during the period by acquiring portions of two different audit practices, gaining 18 from Colorado-based Gries & Associates and 11 from Utah's Pinnacle Accountancy Group. (See "Net engagement leaders.") Ranking second was Singapore-based Assentsure, with nine new clients.

Among larger firms, Deloitte came in first, netting five clients on six new engagements; KPMG and Grant Thornton both netted two clients for the period. (See "Q4 2023 client gains & losses.")

Overall, the number of new engagements signed hit 157 in Q4, a fair rise from Q3's 143, and much closer to the average highs of 2022.

 
Clients by filing status, and more

In terms of clients by filing status, KPMG led among large accelerated filers, though volume in that category was fairly low; similarly, EisnerAmper led amid low volume for accelerated and non-accelerated filers. (See "Audit leaders.") Not surprisingly, GreenGrowth far outpaced the rest of the field for new non-accelerated filers and special, with 29.

EisnerAmper topped the league tables for new assets audited and new audit fees — the former thanks to the $3.08 billion in assets from Louisiana-based bank holding company Red River Bancshares Inc., and the latter thanks to $7.2 million in fees from Irving, Texas-based business process automation company Exela Technologies. (See "New client leaders.")

KPMG came first in new market capitalization audited, with a big boost from Pasadena, California-based Arrowhead Pharmaceutical's $2.8 billion in market cap, and second in new assets, thanks to the $1.12 billion from Overland, Kansas-based mineral producer Compass Minerals International.

Finally, Deloitte came in second for new market cap — with Amityville, New York's Napco Security Technologies accounting for $1.28 billion, or nearly half the firm's total — as well as second in new audit fees, with cashless payments company Cantaloupe Inc. in Malvern, Pennsylvania, contributing the biggest share, at $2.37 million.

Data for the quarterly rankings are provided by Audit Analytics, a premium online intelligence service delivering audit, regulatory and disclosure analysis. Reach them at (508) 476-7007, info@auditanalytics.com or www.auditanalytics.com.