Strategic Moves

Arizona two-step ... Hein + Associates pulled out of the Phoenix market and is moving one of the office's two partners and $500,000 in business to its Denver office. The remaining Phoenix partner, Randy Fitzpatrick, kept $1.3 million in tax and financial planning business and nine employees. Hein

didn't sell the Phoenix practice because, "We don't throw people out without their book of business," Hein MP Lany Unruh told IPA. "Randy came to us in 2001 with his book of business, and we gave it back to him when he withdrew from the firm." On Feb. 1, Fitzpatrick and his staff joined Eide Bailly's Phoenix office. Hein's leaders decided the firm's resources were better invested in its sec, energy, manufacturing, distribution, high-tech, litigation and valuation niches in its four other markets: Denver, Dallas, Houston and Southern California. Fitzpatrick's move brings EB's Phoenix office to a total of four partners, more than 40 total staff, and approximately $6.5 million in annual net revenue. Fitzpatrick and his staff continue practicing in Hein's Phoenix office space through early May, when EB will move into space large enough to accommodate the newcomers. A Phoenix newspaper erroneously reported that Hein merged into EB, but when the fog lifted, it was clear that Hein still operates as a large regional firm. Fitzpatrick's move was independent, and negotiations never transpired between Hein and EB. Hein has FY05 net revenue of $30.5 million, 23 partners, 200-plus total staff and four offices. EB has FY05 net revenue of $74 million, 91 partners, 850 total staff and 12 offices.

Cherry-picking ... Cherry, Bekaert & Holland, based in Richmond, Va., benefits from KPMG's settlement with the U.S. Justice Department regarding iffy tax shelters and at the same time is beefing up its Atlanta practice. CBH recently brought on Gilbert J. Weiner as managing director of its Compensation and Benefits Solutions practice. He's based the firm's new office in midtown Atlanta. The new office consolidates CBH's Atlanta-based tax, consulting and audit professionals, who previously worked out of three separate offices. Weiner comes from KPMG, where he was director of the southeast compensation and benefits practice and served as national co-chairman of its compensation and benefits transaction services group. KPMG was required to divest its compensation and benefits tax practice by Feb. 26 as part of its deal with the U.S. Justice Department that settled criminal charges relating to KPMG's role in the largest tax shelter fraud case in U.S. history. Smart & Associates of Devon, Pa., recently acquired approximately $7 million in KPMG's compensation and benefits business and 37 of its professionals. (see IPA, Jan. 2006; IPA E-Mail Alert, Aug. 29, 2005.) CBH has FY05 net revenue of $66.8 million, 45 partners, more than 600 total staff and 13 practice units.