K·Coe Isom is growing its footprint in California by acquiring Schmidt, Bettencourt & Medeiros in Turlock, the firm’s sixth location in the state.
K·Coe Isom has been expanding its presence in California, focusing on servicing the state’s estimated $41 billion agriculture industry. At the beginning of 2015, its predecessor firm, Kennedy and Coe, entered the California market by merging with the 125-employee firm Matson & Isom, rebranding the combined firm as K·Coe Isom. It later added an office in Fresno last October by acquiring a 90-year-old firm, Stoughton Davidson.
K·Coe Isom, based in Salina, Kansas, ranked 66th on Accounting Today’s 2016 of the Top 100 Firms. It had $61 million in annual revenue for the fiscal year ending March 31, 2016 and expects to earn $65.5 million for the fiscal year ending March 31, 2017.
The acquisition of Schmidt, Bettencourt & Medeiros and expansion to Turlock will put K·Coe Isom in an agriculture-heavy region adjacent to Modesto, halfway between Fresno and Sacramento. The firm plans further expansion in California in the near future, possibly through further acquisitions.
As part of the deal, Michael Schmidt and Carol Medeiros of SBM will become principals of K·Coe Isom, while 18 SBM team members will become K·Coe Isom employees.
“When we met SBM’s leaders, we instantly connected,” said K·Coe Isom CEO Jeff Wald in a statement. “We have a shared passion for our work with ag producers and food companies, and we have very similar practices. Mike and Carol are excellent CPAs who are directly involved in agriculture personally, like many other K·Coe Isom people around the country. The best business advisors to agriculture often come from the field, literally. We’re happy to have them and their excellent team become part of our firm and culture. Together, we are even better positioned to positively impact America’s farming and food production from policy to plate.”
Schmidt’s father Daniel founded SBM as D.C. Schmidt–Public Accountant in 1945. Daniel Schmidt grew up on an Illinois farm before becoming a CPA. His firm grew into a 20-person operation, mainly servicing farmers, nut handlers and processors, beef ranches, dairies, milk processing operations, transportation and construction companies, along with the real estate industry.
Medeiros and Michael Schmidt met when they sat for their CPA exam and became partners in 1989. Their firm eventually grew into Schmidt, Bettencourt & Medeiros in 1997.
“I’m so excited for us to become part of such a great firm that is a good fit for our team and clients both,” Medeiros said in a statement. “In sharing the news with our clients, they are excited as well. They see this as assurance of continuity over the long term. As people who’ve put our hearts into growing our business, it’s refreshing to know that our people and the clients who trust and rely on us are assured a bright and solid future.”
Schmidt sees growth possibilities for his firm by combining with K·Coe Isom. “Agriculture has changed,” he said. “With farms becoming increasingly sophisticated, the bench strength K·Coe Isom adds to what we do is something that really appealed to us. When we sat down and talked about what we could do together, we knew we wanted to be part of this company with its rich resources and depth of knowledge in the ag and food industries.”
