Strategic Moves

The Siegfried Group, based in Wilmington, Del., sold most of its accounting and tax practice to Philadelphia-based Parente Randolph. The move allows TSG to concentrate on its highly lucrative resourcing niche, which accounted for approximately 90% of the firm's business before the sale. PR picks up

approximately 250 clients from the deal, including some attractive pension audits. It also expands its Wilmington presence. TSG's traditional accounting practice netted approximately $5 million in fees last year. Selling most of the traditional practice area "was a tough decision, because that was our original service line," says TSM President Ron Siegfried. The firm always planned to grow its nontraditional and traditional service lines together, but nobody could predict the exponential growth of the firm's resourcing practice, which is a hybrid of traditional services and staffing services. TSG is retaining approximately 10% of its clients in the traditional service areas. Approximately 35 staff worked in TSG's traditional services area and had the option to join PR. Approximately 17 went with PR, 15 stayed at TSG and three took positions elsewhere. TSG grew 126% last year, largely due to the resourcing practice. (see IPA, August 2005.} PR had net revenue of $52 million last year; TSG's net revenue was $39.8 million.

Citrin Cooperman of New York is gearing up for aggressive growth. The firm combined with Shulman, Cohen, Furst & Co., which adds $2 million in revenue. Harold Shulman, Michael Furst, and Alan Cohen join CC as partners and bring an additional seven staff members. Meanwhile, CC is expanding all three of its offices, located in Manhattan; White Plains, N.Y.; and Springfield, NJ. The firm closed FY05 with $41 million in net revenue. It projects $45 million by the end of FY06 and $70 million by 2010. The growth will come both organically and through mergers, MP Joel Cooperman told IPA. He hopes to fill an additional 100 seats within the next three to four years. Ideal merger candidates have revenues of $2 million to $10 million, a team-oriented, entrepreneurial culture that fits well with CC's, and industry expertise that can add or bolster the firm's existing strengths.

And they're off! New Year's mergers abound this time of year in public accounting. Here's a synopsis of some notable deals of late:

* BMC of Reading, Pa. (formerly known as Beard Miller & Co.) combined with MacDade Abbott of Paoli, Pa. The deal expands BMC's geographic foothold and complements its existing strengths in education and insurance. The deal brings BMC three partners: Robert G. Finn, Joseph C. Sassa III, and Charles W. Schug, as well as nine staff members. Finn becomes office MP for the new location. BMC had approximately $35 million in net revenue last year.

* Fishbein & Co. of Horsham, Pa., acquired the Corporate Practice Division of HJ Financial Group. The deal expands the firm's financial and tax planning capabilities.

* Mayer Hoffman McCann of Leawood, Kan., acquired Conrad & Assoc. of Irvine, Calif, and formed Conrad Government Services Division. Conrad specializes in audits of municipalities and government agencies. It is MHM's second location in Orange County, Calif. MHM is affiliated with CBIZ through an alternative practice structure.

* RSM McGladrey increased its Philadelphia presence with the acquisition of the non-attest assets of Manias, Obliger, McGary & Quinn. The deal gives RSM 14 managing directors and 135 total staff in the Philadelphia area.

* SS&G Financial Services, based in Cleveland, merged in Schwartz, Adelman & Yankovich, based in Columbus, Ohio. The deal brings SS&G's Columbus staff to more than 45. SAY principals Barry Adelman and Frank Yankovich become SS&G directors and bring 14 additional staff. SS&G had net revenue last year of approximately $32 million.