Fort Wayne accounting firm enters Indy market

A Fort Wayne-based accounting firm that ranks among the state's largest has expanded into the Indianapolis market with plans to someday grow the local office into a major competitor.

Baden Gage & Schroeder LLC, which has 41 accountants and 120 total employees, has established quarters in the

Partners had been eyeing the local market for a few years before permanently moving to the space this month.

"We're going to focus on Indianapolis because there is so much opportunity there," said Managing Director Ron Baden. "We believe a lot of businesses there can use our services. Our hope someday is to have that as our largest office."

The 21-year-old firm mainly serves the manufacturing, distribution and construction sectors, and performs property and real estate tax work for the state. Given the state work, "it makes sense for us to be there," Baden said of the expansion.

Baden Gage is an independent firm that has no interest in merging with, or being acquired by, another firm, Baden said. Instead, partners about 10 years ago began focusing more on consulting opportunities. The result was Baden Manufacturing Solutions, a consulting arm of the accounting practice that provides services to the manufacturing industry. The operation now accounts for more than 50 percent of the firm's revie, Baden said. That figure could grow even more with the opening of the Indianapolis branch.

"Baden is a solid firm with an excellent reputation," said Rob Nance, marketing and strategic development manager at accounting firm RJ Pile & Co. LLC. "Their expansion to the Indianapolis market is representative of what is occurring in the industry today."

Most of the expansion of services and consolidation among firms stem from the Uniform Accountancy Act. The measure, adopted by the American Institute of Certified Public Accountants and the National Association of State Boards of Accountancy, encourages eliminating barriers to interstate practice, allowing up to 51 percent non-CPA ownership of firms, allowing CPAs to use their designation regardless of whether they practice with a licensed firm and, in some states, reducing experience requirements. Indiana's version, House Bill 1573, went into effect July 1.

Locally, during the past three years, Whipple & Co. and McGee Rice & Wheat both merged with The Somerset Group to form Somerset Financial Services. HRB Business Services, a subsidiary of H&R Block, acquired the consulting services of Katz Sapper & Miller LLP. That marriage failed, and KSM bought back its assets late last year. In June of this year, Olive LLP and Springfield, Mo.-based Baird Kurtz & Dobson completed their alliance and are now known as BKD.

Steven Brady is managing partner of Baden Gage's local office. A former leader of the construction practice at Olive, Brady left well before the merger and is looking forward to introducing Baden Gage to potential clients.

The firm plans to have a staff of 15 people locally by the end of 2001, and to add consultants and accountants each year. In the meantime, with northeastern locations less than two hours from Indianapolis, Brady said, it should be no problem to staff the new office.

"There are a number of people in Fort Wayne who were controllers, CFOs or CEOs of companies in a prior life," Brady said.

Baden Gage partners believe there is room in Indianapolis for another accounting firm. At least one of their competitors agrees.

"I certainly think there's plenty [of business] out there," Somerset Managing Partner Patrick Early said. "But the truth of the matter is, a lot of firms, including ours, are doing things they didn't used to do, and it's opening up a lot of opportunities."