May 2015, Vol. 29 No. 5

MAY 2015

COPYRIGHT ©2015 THE PLATT GROUP/INSIDE PUBLIC ACCOUNTING. IT IS A VIOLATION OF FEDERAL COPYRIGHT LAW TO REPRODUCE ALL OR PART OF THIS PUBLICATION WITHOUT CONSENT.

Firms must grow. It’s a

business imperative.

May 2015 Vol. 29, No. 5

FIRMS Bitcoin Now Accepted At One CPA Firm 3

M&A M&A Attorney Shares Insights On Mergers 5

LEADERSHIP CHANGES KPMG 8 WeiserMazars 8 MaloneBailey 9

Lutz 10

PLATT’S PERSPECTIVE Connecting The Dots – Because Perspective

Matters 12

MOST ADMIRED PEERS Steve Tatone Shares Thoughts On Leadership 14

PARTNER RETREATS Five Topics For Partner Retreats 15

OTHER NEWS Association News 16 Mergers In The News 17 People In The News 17 Firms In The News 19

INSIDE PUBLIC ACCOUNTINGA publication of The Platt Group

insidepublicaccounting.com

Mitigating Risk: Careful Considerations For Client Acceptance And Retention

Not all business is created equal. Practitioners know this, but it’s easy to

come down with temporary amnesia when the possibility of a lucrative new

client presents itself.

Accepting new clients before asking the right questions (and documenting

the answers) can spell trouble in the form of aggravation, wasted time and

money, and a bigger risk of claims against the firm.

“We all spend a lot of time working

with clients,” says Dave Sukert,

senior vice president at Aon Affinity,

“and honestly, there are good ones

and ones that aren’t quite so good, and

we’re spending an amazing amount of

time on the not-so-good ones.” The

time spent trying to “rehab” them into

good clients is time that could have

been spent serving A-list clients or finding new clients who are better. “Is a

buck a buck? No, it’s not,” he says, because you might be spending two

bucks tending to issues that shouldn’t be there in the first place.

Sukert, whose company administers all the

insurance programs for the AICPA, believes

more thoughtful client acceptance procedures

can help firms protect assets so diligently built over the years. And a lot of

it is about asking the right questions and developing the skills to spot the

clients who are best to avoid.

Get to know potential clients before they become clients, Sukert says. Not-

so-good clients tend to shop around a lot. They tend to be involved in

litigation. They tend to have issues with other professionals, and they tend

to avoid paying on time.

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A central, but often overlooked, question to ask in the initial interview is, “Why are you

here?” If your firm is the third one the potential client has worked with, it’s legitimate to

question why, Sukert says. The conversation may be awkward, but it’s easier to preclude a

problem than to fix one later, he says.

Also, find out their expectations and timetable. If a potential client is asking for certain work

to be done in a rush, it’s a red flag. Doing work quickly compromises the firm’s ability to do

the work well. And remember to document all discussions.

Sukert also advises accountants to be honest with themselves when considering new work.

“Ask yourself, ‘Am I qualified to do the work they want me to do?’ If you’re not, you

shouldn’t do it, or get qualified to do it.” Some accountants see the dollar signs attached to

the work and think, “I’m a smart guy, I’ll figure it out.”

Ask specific questions about what the client wants the firm to do. Then

write it down. Craft an engagement letter, which Sukert describes as

“the rules of war drawn up in peace time.” There’s no substitute for a

clear engagement letter that defines the scope of services, and

accountants are sometimes reticent to ask for one. Without it,

“engagement creep” can set in, Sukert says, as accountants end up

doing more and more work to meet expectations of clients that may not match the

accountants’ expectations.

Long-term clients need to be asked the same kinds of questions periodically, Sukert says, as

an A-list client can turn into a “D” client over the years. “Usually, things don’t go bad all at

once,” he says, noting that accountants should be having regular contact with the client.

Client expectations can change over time as well. The “most trusted adviser” descriptor that

accountants use can cover a huge range of tasks. It’s difficult to give up revenue from a client

that’s been cultivated over many years, but sometimes it is necessary.

Turning down business is difficult, but it gets easier with practice, Sukert says, advising

accountants to outline their concerns with potential clients, who may not like it but would

most likely appreciate the professional candor. Accountants can tell potential clients that

they’d be happy to work with them after certain issues are resolved. Again, document

everything. Include a short note in the file that describes why the engagement was declined.



“I don’t think it can be underscored enough that clients look to accountants as their most

trusted adviser – that’s what they’re paying for, that’s what their expectations are,” Sukert

concludes. “You have to know how to manage and fulfill those expectations, and without

getting the right information, I don’t know how you can.”

CERTAIN CLIENTS ARE ASSOCIATED WITH HIGHER RISK

Aon administers the AICPA’s professional liability program, which covers about 25,000

firms, Sukert says. Most of the claims are from tax work simply because that’s what most of

the practitioners are doing – taxes. Other than that, the following types of clients are

associated with higher risk:

Public Audits: These claims are of larger magnitude. If a firm conducts an audit for Company

A, and the firm missed something or the company concealed information, the audit could

make the company look as if it’s in better financial shape than it actually is. Bank B could

then contend that it relied on the audit report to lend money to the now-bankrupt Company

A, resulting in a huge claim.

High-Net-Worth Individuals: If something goes wrong, these clients have the means and the

wherewithal to fight the firm in court if necessary.

Family Businesses: If a firm has done seemingly everything for the family over the years, the

firm can end up doing more than what is actually agreed upon. Engagement letters are

critically important to clearly outline the scope of services, especially when there’s a divorce

or a death and money must be divided up.

CFO Services: Again, make sure the role is perfectly clear in these arrangements. Some

accountants can end up making management decisions that’s outside their scope, increasing

their exposure to risk. IPA

Habif Arogeti & Wynne Anticipates Demand For Payment Alternatives, Begins Accepting Bitcoin

Not long ago, accounting firms would not take credit cards

from clients, but now most are doing so. Similarly, accepting

bitcoin as payment for services may seem “way out there,”

but may not be so strange in the near future.

For now, though, it’s so unusual that Habif, Arogeti & Wynne (HA&W) of Atlanta (FY13

net revenue of $64.3 million) contends it is now the first accounting firm in the U.S. to accept

the digital currency.



Mitchell Kopelman

The payment method is fairly new and while it’s growing in popularity it isn’t exactly

mainstream. Bitcoin has been controversial because of the “pseudo-anonymous” nature of the

transactions and the bitcoin’s fluctuating value, which is based on supply and demand and is

not backed or linked to the traditional banking system and its regulations.

But for HA&W, a 2014 IPA Best of the Best firm, accepting bitcoin

is just another payment option for clients, who can already pay by

credit card or through PayPal, says Mitchell Kopelman, PIC of

HA&W’s technology and biosciences practice. The firm decided to

limit its risk, however, so the firm doesn’t have an online “wallet”

where bitcoins are stored. Instead, the firm converts all bitcoins to

currency.

BitPay, the leading bitcoin payment processor, is one of HA&W’s

clients, and Kopelman says the firm grew very comfortable with its

methodology and processes. The processor has 50,000 clients, and

HA&W views the digital currency as an evolving payment mechanism.

BitPay converts the bitcoins to cash and deposits it into the firm’s bank account. Likewise,

the majority of customers ask that bitcoins be instantly converted to cash – companies like

Dell, Expedia and Microsoft, which are accepting bitcoin payments. “I would say as a

general trend most of our larger businesses do choose a settlement in 100% U.S. dollars

because that’s how they do their accounting and finance,” BitPay co-founder Tony Gallippi

told Money magazine.

HA&W has a team of 10 professionals who work with bitcoin payment processers to develop

proper controls and apply best practices, such as ensuring the integrity of transactions,

understanding tax treatments for digital currencies and implementing IT risk management

controls. “We do think it’s important for us to stay current with changes in the FinTech

space,” Kopelman says.

Any client with bitcoin can pay the firm through that method, although no one has taken

advantage of it yet. Kopelman says the firm is getting ahead of the demand by making the

option available. He noted that very few clients used credit card payments initially either. “It

will take a while before the mainstream payer uses a different payment processor,” he says.

The firm will continue to monitor the volatility of bitcoin value. Last year, its value

plummeted by more than 50%, from $770 at the beginning of 2014 to the mid-300s by mid-

December, according to the CoinDesk Price Index. This year, as of May 1, its value stood at

$235 per bitcoin; it was at its lowest on Jan. 14 at $177 and highest on March 11 at $296.



Russell Shapiro

Kopelman said the firm is often paid in other currencies that are converted to U.S. dollars

since it works with international clients. Monitoring fluctuations in value for bitcoin is really

no different.

HA&W auditor Bill Dupee noted that one benefit of using bitcoin for payments is that

processing costs are far less than similar costs associated with credit cards and wire transfers.

He’s also an advocate of the technology behind the digital currency. All transactions are

recorded on an online public ledger called the blockchain, which is transparent and open to

scrutiny. “The technology is continuously growing and we’re staying on top of it to best

serve our clients and gain future clients,” he says. IPA

M&A Attorney Shares Insights Into Issues That Could Make Or Break Deals

Russell Shapiro, partner at Chicago-based Levenfeld Pearlstein,

worked on two of the biggest mergers in the profession last year: The

acquisition by Chicago-based BDO (FY13 net revenue of $833 million)

of Cleveland-based SS&G Inc. (FY13 net revenue of $90.5 million)

and BDO’s acquisition of Chicago-based UHY Advisors’ Texas

practice.

Shapiro also helped structure and negotiate a merger of Springfield,

Mo.-based BKD LLP and Oakbrook Terrace, Ill.-based Wolf & Co. as

well as the merger of Charleston, W. Va.-based Arnett Foster

Toothman and New Castle, Pa.-based Carbis Walker.

With the rapid pace of mergers and acquisitions in the profession, IPA asked a lawyer who’s

structured numerous deals to share his thoughts on the merger process and possible legal

issues that could arise

Under what circumstances should a firm consider merging up? When it’s not growing, profits

are stagnant, partners don’t want to invest in people, technology or new service areas, when

they’re having difficulty recruiting and paying retirement benefits, and finally, if they think they

can expand their work with a bigger platform.

How do you find a compatible match? There are two ways. MPs start talking to people they know

in the area, or they hire a consultant to help them assess what kind of partnership they want and

to educate them on who is out there who might fit that bill.



What should the smaller firm look for in courting a bigger firm? What due diligence should be

done before going out into the market? Look for strong financials and the willingness of the

acquiring firm to invest in their firm and their market. See what their track record is in other

cities and learn their reputation by talking to other people.

What kind of due diligence should be done by the acquiring firm? Look for a firm with a similar

mindset in terms of growth and client development, good geographical positioning and expertise.

Principally, bigger firms are looking for geographic reach and niches, but some firms just want to

add people and they feel if they get to a certain size they can take on larger clients. If you get

bigger you can concentrate in one practice area even if you’re not buying a niche.

What are the biggest mistakes you see firms make during the merger process? I don’t know if I

see that firms are making mistakes, but I see difficulties in the process that could be avoided. I

think that MPs underestimate how much is going to be involved. An MP needs a right-hand

person, because the due diligence and contracts are overwhelming.

The other thing that can go wrong in the process is how the acquired firm partners are handled.

It’s important that the process is managed. Some partners may not want to go along. It can be

very time-consuming dealing with that, and that is sometimes unexpected. I’ve been involved in

quite a lot of mergers, mostly larger firms acquiring smaller firms, but when it’s two firms of

about the same size coming together, it’s a lot more complicated.

‘Culture’ is a nebulous term. How can you determine the cultural fit? Honestly, it’s difficult to

really determine culture before you get married. It’s important to meet the people and feel like

you could work with them to bridge any differences. You have to have a comfort level with their

philosophy, and the MPs of both firms must be able to work well together.

What kind of legal issues can arise during the transaction process? The

first stage is the confidentiality agreement, which includes a “no-

poaching” provision. Entering into an agreement ensures discussions

remain confidential while providing a legal remedy if one firm starts

raiding the other’s employees.

A letter of intent, or a term sheet, spells out the deal. It’s not binding,

but it may have a “no-shop” provision that outlines a period of time in which the seller is barred

from soliciting a purchase proposal from any other party.

After the due diligence process, negotiation surrounds issues in the definitive agreements, on

liability, indemnification and winding down of the old partnership, as in how the remaining

assets are going to be divided up.

How can leaders manage the emotions involved in the process? Partners of the firm being

acquired will grieve. They helped build the firm and it’s been their baby. It’s what they’ve known



and liked, and even if they want to go along with it, they grieve. The MP and others need to

understand that it’s normal and it will take time.

How should clients be handled when the merger decision is made so that clients are retained?

You know, keeping the clients is not that big a deal. Clients are attached to their partners. Tell the

clients that the partner and the price will be the same, but the firm can add services and offer

better access to expertise.

Some mergers result in partners leaving for other firms, or

starting a new firm. Is this expected? Most firms have non-

solicit agreements or non-compete agreements. Some will

leave, but I don’t see that as a major issue impacting these

transactions. Obviously, the acquirer wants to make sure

the main partners are on board. That is a major issue

impacting these transactions.

What are some of the legal issues that could arise in the agreements?

Let’s go through a number of them.

One is obligations to retired partners. Usually, when a buyer acquires another firm,

significant obligations have to be paid out and they may not be able to give as good a

deal to the current partners. Sometimes retired partners must be paid out more quickly

if there’s a merger – that’s something to look out for – and sometimes the retired

partners have some say-so in whether the firm merges at all.

Know your partnership agreements.

Retirement benefits in the newly merged firm must be understood as well. Some older

partners may be able to negotiate a slightly different deal than younger partners if they

would be receiving a lower retirement payout under the new arrangement. Less

experienced partners typically go along with what the new firm is offering.

And then there are compensation guarantees. Typically a firm will be able to negotiate

a one- to two-year compensation guarantee as long as the revenues are roughly

equivalent to what they were prior to the merger. These issues can be sticky.

In addition to agreeing to the terms, questions surround which revenue is counted

toward the guaranteed compensation. Sometimes bonuses can be negotiated too, but is

that extra revenue divided equally among the partners or should it be based on who

produced the revenue? These are questions that may involve more discussion and

negotiation. IPA



Victor Wahba

Lynne Doughtie

KPMG Elects Lynne Doughtie As U.S. Chairwoman & CEO

New York-based KPMG (FY13 gross revenue of $6.1 billion) has

elected Lynne Doughtie as its next chairwoman and CEO for a five-

year term starting July 1.

Doughtie joined KPMG’s audit practice in 1985 and went on to

serve in a number of national, regional and global leadership roles,

including the lead engagement partner for some of the firm’s major

clients. She is a member of the U.S. firm’s management committee

and KPMG International’s global advisory leadership team.

Doughtie currently leads KPMG’s advisory business.

Doughtie succeeds John Veihmeyer, who has served as U.S.

chairman and CEO since 2010 and simultaneously as global chairman of KPMG

International since February of 2014.

“Lynne has been a key member of our management team during a period in which we have

built a strong culture within KPMG, that promotes integrity, high performance, and diversity

and inclusion, and I know she will continue to champion these values,” Veihmeyer says.IPA

Leadership Changes Track With National Expansion Plans

New York-based WeiserMazars LLP (FY13 net revenue of $142.4 million) has put a new

leadership team in place to solidify the firm’s foothold in Chicago as well as expand from

San Francisco to San Diego and into Texas.

WeiserMazars has offices in six states, Israel and the Cayman

Islands, but is seeking “critical mass” in key regions to create a

truly national presence. Mergers may be one way to get there, says

new CEO Victor Wahba, who took on the role April 1. On the

same day, James Blake was made the first-time MP of the firm to

head up day-to-day operations while continuing to lead the New

Jersey office.

Blake and Wahba, who previously served as New York OMP and

oversaw mergers and acquisitions, spoke to IPA recently to

discuss the firm’s plans.



James Blake

WeiserMazars has a small office in Chicago, but the market is ripe

for growth, Wahba says. The firm opened an office in Sacramento,

Calif., after acquiring pmpm Consulting Group, a health care

consulting firm last year, but is eyeing moving southward in the

state. The Dallas-Houston area is a key hub for growth in Texas,

Wahba says, but the firm is also looking at Austin and San

Antonio. In addition to mergers, the firm may also hire teams of

people in specific industries.

Blake says the consulting practice, which made up 5% of revenues

five years ago, now accounts for 20%, with focus on the health

care sector and financial services. The size of the health care

practice has tripled over the last few years. Expansion in Chicago and the West Coast match

well with WeiserMazars’ key service areas: manufacturing and distribution, energy and

utilities, real estate and financial services.

WeiserMazars is the independent member firm of Mazars Group. Unlike some firms,

WeiserMazars first shored up international services before looking at U.S. expansion, Wahba

says, because clients were coming to the firm with challenges associated with operating

internationally.

Both noted that the transition to an MP and new CEO – Wahba is replacing Douglas

Phillips, who will stay on as chair – has been over a year in the making.

Both Wahba and Blake are tasked with maintaining and guiding the culture of the firm,

which will evolve as the firm grows. The firm gets high marks from staff for its commitment

to diversity, career development and giving back to the community. With the talent wars

heating up, these leaders say WeiserMazars is challenged with having the best story to tell

and the best opportunities for advancement. “These are some exciting times at

WeiserMazars,” Wahba says. IPA

MaloneBailey Announces Retirement Of Founding Partner John Malone

Houston-based MaloneBailey (FY13 net revenue of $11.4 million) announced that after

four decades of serving the accounting profession, founding partner John Malone retired in

May. Malone founded MaloneBailey in 1982 as a general practice offering audit, tax,

bookkeeping and consulting services – the standard full-service mix of the majority of local

CPA firm practices.



Mark Duren

John Malone

Malone is credited with revolutionizing the way audits are conducted for small public companies by instituting a number of changes to the standard CPA firm practice model. The

changes maximize the efficiencies that the smaller SEC companies require: lower costs, faster service and more competent work product. Such changes included early transition to a 100% paperless approach and remote auditing capability to serve clients around the world and across the nation from its Houston headquarters as well as a strong in-house training program and recruiting initiative to attract top talent from universities nationwide.

In 1996, the firm had two SEC reporting clients. Today, the firm has

more than 190 SEC-registered clients, including NYSE-, NASDAQ-

and AMEX-listed companies, and six full-time SEC audit partners. MaloneBailey is No. 7 in

the world in terms of the number of U.S. public company clients served. MaloneBailey is in

exclusive company as one of nine in the world that audits more than 100 issuers annually.

MaloneBailey participates in more than 700 SEC filings per year.

“I am truly grateful for the tremendous support I got from our community, the various

professionals who helped me directly along the way, and our great employee team,” says

Malone. “It is time to step down and let my outstanding partners lead the charge to our next

round of growth.” IPA

IPA Best Of The Best Names Duren Managing Shareholder

Mark Duren was named managing shareholder of Lutz (FY14 net revenue of $27.1

million) of Omaha, Neb., on May 1.

Duren succeeds Gary Witt, who served the firm as MP since 1994.

Witt will remain with the firm in a consulting role. Duren will

continue to build on the momentum established over the last 20

years and uphold the emphasis on superior client service.

He will be responsible for driving the firm’s strategic direction and

continuing to grow both its traditional and non-traditional service

offerings including technology, financial services, M&A and talent.

Lutz is an IPA 200 firm, a 2014 IPA Fastest-Growing Firm, and a 2013-14 IPA Best of the

Best. IPA

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w w w. c o n v e rg e n c e c o a c h i n g . c o m

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Platt’s Perspective: Connecting The Dots – Because Perspective Matters

It’s amazing how perspective changes a landscape.

At one time or another, all of us have gone up a glass elevator, looking

out at the entire landscape unfolding before us. What looked like a

cluttered mess on ground level reveals itself to be a manicured, well

laid-out design that makes sense only when seen from above. The trees,

the landscaping, the water features, the roads, the sidewalks –

everything is in order and all the pieces come together to form a

harmonious landscape.

As a partner, you most likely enjoy this higher-altitude view of your firm. The “cluttered

mess” makes sense when you rise above it. Your “landscape” includes the long-term vision,

strategy, values, the various departments, services, niches, technology, staff, referral sources,

client approaches, compensation, community activity, training, marketing, leadership

development and all the other components that together create a harmonious landscape.

But staff rarely get a chance to ride that elevator to catch a glimpse of the total landscape.

They are hacking through the weeds on the ground, not always sure of where they are going

or how close they may be to getting there.

Remember that scene toward the end of the movie “The African Queen” when Humphrey

Bogart and Katherine Hepburn all but give up on their long journey down the Ulanga – stuck

in the reeds unaware that open waters are just yards away? The camera pans up and the

audience can see that they are so close – but the main characters at water level despair and

lose hope.

That’s not dissimilar to what may be happening in your firm. Staff may not know that they

are contributing to the success of the firm and its clients. They may not recognize that they

are on the right track and moving toward “success.” They may not see the open waters just

beyond the reeds and they bail out – looking for other opportunities, even though they were

“so close” to getting there in your firm.

Your responsibility as a leader is to help your staff see the well-manicured landscape. Take

them for a ride in the elevator every now and then and show them the view. Connect the dots

for them so they can see the well thought-out design behind the seeming chaos at ground

level. Show them how close they are to achieving their objectives so they stay motivated to

break through the reeds and get to the open waters ahead.

What’s the risk? Yes, they may find out they are afraid of heights. But they may discover that

they get very excited about the view. IPA

Mike Platt

“1st Global knows how to integrate financial services into large CPA firms like Beall Barclay. Their understanding of our unique challenges and opportunities has helped us grow a highly profitable wealth management division that has resulted in greater client retention and satisfaction.”

Barbara Hambrick, CPAManaging Partner

Beall Barclay & Company, PLCFort Smith, AR

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IPA’s Most Admired Peers Discuss The Challenges Of Leadership Part Four: Steve Tatone

Every year IPA asks leaders to name peers they most admire in the

profession. Five MPs were named most often by the more than 540

firm participants in IPA’s Annual Survey and Analysis of Firms. As

we have previously, this month we continue to share thoughts on

leadership challenges from the 2014 IPA Most Admired Peers.

Our fourth of five IPA Most Admired Peers continues with Steve

Tatone, MP of Salem, Ore.-based AKT LLP (FY13 net revenue of

$38.2 million).

We use the term servant leadership here and it manifests itself in everything we do,” Tatone

says. The firm sets the conditions for professionals to grow and thrive, no matter what they

end up doing, even if it’s outside public accounting. The committed, caring team approach at

AKT is a magnet for talent and turnover is low.

Tatone points out that self-knowledge is important – understanding your own motivations

and reactions – as well as having a good understanding of other people’s emotions. The Bible

has helped Tatone learn to be a better leader. Over the last 30 years, he has embarked on

three 8-year Bible studies, which cover “every leadership situation imaginable.” He also

spends time with successful leaders, not just in business, but also in the public sector and

nonprofits. In addition, he observes different styles of leadership in his volunteer activity and

reads leadership books.

Important influences in his life were his parents, who taught him the value of hard work,

taking calculated risks and integrity. He also points to retired partner and former Salem, Ore.,

mayor Kent Aldrich, who gave Tatone the opportunity to lead at an early age, and his oldest

son, who “challenges me to think about things differently.”

Constantly remind the team of the firm’s mission, vision and values; set the conditions for

people to grow and thrive; don’t over-react. “Over-communicate, but don’t over-react. The

leader sets the tone and constantly has to send it from a good space, not a reactive space.”

Tatone says he’d like to improve in all areas of management and leadership. He foresees big

data having a significant impact on the way accountants do their work, and while personnel

costs are going up, fees aren’t keeping pace, so the profession will have to develop new ways

to provide valuable services in a more efficient way. “I think with what we do is going to

change pretty significantly in 5 to 10 years and we need to make sure our leadership is

innovative enough to stay with that change.”

Leadership Talent

Mentoring

Leadership Advice

Leadership Improvement

Leadership Improvement

Steve Tatone

Leadership Style

Leadership Style

Mentoring

Leadership Advice



The entire purpose of owning an accounting firm is to improve the lives of clients, employees

and people in the community, Tatone says, so growth is only partly about revenue. While

firm leaders in 2002 set a goal of going from a $10 million to a $25 million firm in five

years, and did it in four, AKT is looking at growing industry niches and improving processes

and leadership abilities of professionals at the firm.

Leadership speaks with one voice at AKT, Tatone says, and partners are held accountable for

living out the culture. “It’s not just words on a page, it’s a lifestyle.” IPA

Five Suggested Topics For Your Firm’s Annual Partner Summit By Joseph A. Tarasco, founder and CEO of Accountants Advisory Group

As accounting firm leaders begin planning the agenda for their annual partner summits,

consider the following discussion topics.

1. Putting the firm in a strategic position to create and sustain a competitive advantage.

Strategic positioning is defining how your firm will best compete now and in the

future for clients and talent. Strategic positioning is established by developing a

business model that includes:

Developing new, innovative service offerings to meet the needs of clients and the

marketplace.

Targeting clients of the right size, in specific industries, that the firm has the best

possible chances of engaging.

Establishing and enhancing niches and specialties in focused areas rather than many

small initiatives.

Establishing additional business locations to expand the firm’s geographic market

reach.

Developing leaders and professional talent within certain niches and specialty areas.

Maximizing lead generation in target markets.

2. Accepting what made the firm successful in the past may not make it successful into

the future. Long-term success depends on the partners’ ability to avoid being

squeezed between the past and the present. Firms need to analyze, explore and

determine new strategies to capitalize on marketplace opportunities and respond

quickly with an appropriate action plan. Partners should review their professional

talent, the firm’s processes and structure and how they are aligned.

3. Managing the pyramid for future success. Many firms have become very top heavy

and under-leveraged, which has been fueling the volume of merger activity over the

last five or so years. Developing a proper pyramid structure with the right partner-to-

Growth and Culture



staff ratio is difficult but necessary for delegation and succession planning. There is a

direct connection between partner-to-staff ratio and profitability, growth and

succession planning.

4. Exploring mergers and acquisitions to achieve the next level of success. Evaluate

mergers and acquisitions to grow the practice and obtain the necessary talent to

provide the right combination of services and expand the firm’s geographic reach.

Keeping up with local competition for clients and staff while the profession

consolidates is a necessary strategy that should be evaluated on an annual basis.

5. Evaluating partner performance and leadership. Partner performance accountability

and related compensation decisions are an integral part of what defines a firm and its

future success. It’s worth the time and effort to evaluate partner performance and to

encourage the behaviors needed to add value to your firm. Chances of reaching peak

potential are better if partners are formally accountable to each other for performance

and attaining stated leadership goals and objectives. Getting your firm to the next

level of success is not just about working hard and producing billable hours, it’s also

about inspiring change, unleashing talented partners, and making contributions for the

firm’s long-term future. Leaders need to be role models by being prepared to change

how they act, evaluate and reward. IPA

Ramsey, N.J.-based Weber Shapiro & Co. joined Alliott Group North America. W&S provides businesses and individuals with a full range of accounting and consulting services, including international taxation and global business services. In addition to a comprehensive roster of domestic clients, W&S provides services to businesses and individuals in a number of international locales, including France, the United Kingdom, Italy, Australia, Sweden and Portugal. The W&S team offers expatriate taxation services and expert guidance in corporate structure and formation for foreign businesses seeking to operate in the U.S.

The Crowe Horwath LLP National Tax Office (NTO) recently accepted its 33rd CPAmerica International member firm. The 10-month old program, which gives members access to NTO resources and specialists, has already exceeded CPAmerica’s participation expectations. CPAmerica member firms that participate are treated similarly to Chicago-based Crowe Horwath LLP’s (FY14 net revenue of $670.2 million) own regional offices. Some benefits that are offered by NTO include having a senior member of NTO assigned to each member firm, professional time for technical consultations at a discounted rate and expert advice on tax services including mergers and acquisitions, accounting methods and periods, high level partnership issues and accounting for income taxes.

Tyler Simms & St. Sauveur of Lebanon, N.H., joined CPAmerica International. Founded in 1986, the firm has grown to become the largest firm headquartered in the upper Connecticut River Valley of New Hampshire and Vermont. IPA



The external audit and tax practices of Shatswell MacLeod & Co. of West Peabody, Mass., will join forces with Portland, Maine-based Baker Newman Noyes (FY13 net revenue of $27.7 million) on July 1. Glen MacLeod, CEO of Shatswell MacLeod, along with partners John Marsh, Kevin O’Brien and Joseph Jalbert, will become audit principals at BNN. John Fitzgibbons, the leader of Shatswell MacLeod’s tax practice, will also join BNN.

Chicago-based Crowe Horwath LLP (FY14 net revenue of $670.2 million) acquired Simsbury, Conn.-based Saslow Lufkin & Buggy, effective July 1. Established in 1999 by Richard Buggy, Glenn Saslow and Robert Lufkin, the firm, has 90 professionals, including eight partners.

Hauppauge, N.Y.-based Fuoco Group acquired MCG Financial Services, Approved Accounting Associates and NHC Hospitality Consultants, three accounting and consulting firms based in Boca Raton, Fla., which were founded and operated by Joel Mason. In addition to providing traditional accounting and tax services, Mason’s experience in the hotel and hospitality sector, as well as other industries, provides added diverse knowledge and capabilities to the Fuoco Group. This merger is part of Fuoco Group’s Florida strategic growth plan. The firm is also eyeing growth opportunities in Atlanta, Washington, D.C., Philadelphia, New Jersey and Boston.

New York-based KPMG LLP (FY13 gross revenue of $6.1 billion) entered into an agreement to acquire substantially all assets of Weymouth, Mass.-based Beacon Partners, Inc., a health care consulting firm that offers strategic management and clinical and information technology consulting services to health care providers. The addition of Beacon Partners’ credentialed consultants will provide KPMG with broad-based capabilities in core provider business applications and Electronic Health Records (EHR) systems. Beacon Partners will mark the ninth acquisition KPMG has made in the last 17 months.

Chicago-based McGladrey LLP (FY14 net revenue of $1.5 billion) reached an agreement to acquire substantially all the assets of San Diego-based PKF San Francisco (one partner and 13 staff) and Wolfe Nilges Nahorski (four partners and 40 staff) of St. Louis. McGladrey expects to enter into definitive agreements and close both transactions on Aug. 1.

Pittsburgh-based Schneider Downs (FY13 net revenue of $57.6 million) will acquire Pittsburgh-based The Meridian Group, an investment banking and management consulting company. The Meridian Group specializes in providing corporate workout/turnaround management services, financing, management consulting and merger and acquisition consulting. The arrangement will create a new entity, Schneider Downs Meridian, and will meld services from the two organizations.IPA

Richmond, Va.-based Cherry Bekaert LLP (FY14 net revenue of $130.8 million) admitted Mark Giallonardo as a tax principal in the firm’s Coral Gables, Fla., office. Giallonardo will provide expertise in the areas of entity structuring, accounting method changes and planning for partnerships, S corporations and their owners. He will also serve as Cherry Bekaert’s Florida regional tax leader.

Zubin Mistry has been admitted to the Los Angeles office of New York-based CohnReznick LLP (FY14 net revenue of $508.2 million) as partner. Mistry has more than 20 years of experience serving



privately held and public companies in the emerging and middle markets as well as mature companies in the Fortune 100. The firm also admitted James Wienclaw to the New York office as a partner. Wienclaw brings nearly 20 years of diversified public accounting experience with an extensive background in providing tax services to public and private companies, as well as to the individual owners of closely held businesses.

Roseville, Calif.-based GALLINA LLP (FY13 net revenue of $37.1 million) admitted Todd Benson as CFO after nearly two decades of leadership under CFO Mary Bradley. Benson joined the firm on April 6. Bradley will retire next month.

Liz Wallace joined Chicago-based Grant Thornton LLP (FY13 net revenue of $1.3 billion) as managing director in the firm’s strategic federal tax services practice, based in Metropark, N.J. Wallace joins Grant Thornton from KPMG, where she was a senior manager and leader of the Metro New York commercial tax credits practice.

Ridgeland, Miss.-based HORNE LLP (FY13 net revenue of $67.4 million) admitted Ashley McAdams and Scott Keller to partner. McAdams is part of HORNE’s financial institutions team. Keller serves on the firm’s government services team.

Brentwood, Tenn.-based Lattimore Black Morgan & Cain (FY14 net revenue of $71.8 million) admitted Brian McCuller to PIC of the firm’s SALT practice. Prior to joining LBMC, McCuller was a managing director in the CBIZ national tax office for three years.

The Massachusetts Society of Certified Public Accountants (MSCPA) named Amy Pitter as the association’s CEO. Pitter will join the MSCPA from her previous role as commissioner of the Massachusetts Department of Revenue, where she was responsible for overseeing nearly 2,000 employees.

Chicago-based McGladrey LLP (FY14 net revenue of $1.5 billion) named Bill Kracunas national leader of its management consulting practice, succeeding Jim Lamb who retired April 30. Based in Boston, Kracunas is a principal of the firm and currently leads McGladrey’s technology and management consulting practice in the Northeast region. Kracunas joined the firm in 2010 with the firm’s acquisition of New England-based Caturano and Co.

Sacramento, Calif.-based MGO (Macias Gini & O’Connell) (FY13 net revenue of $33.4 million) admitted Brandy Davis to partnership in the firm’s media and entertainment practice. Her areas of expertise include tax planning, estate planning, financial planning, risk management and consulting.

Seattle-based Moss Adams LLP (FY13 net revenue of $403 million) admitted five partners. Bob Hinton, who has served as the PIC of the Tacoma, Wash., office for eight years, will now serve as the PIC of both the Tacoma and Seattle offices. Rob Grannum was named the new PIC of the Everett, Wash., office. Jarret Rea assumed the role of PIC for the firm’s Kansas City, Kan., office. Steve Fein serves as the firm’s PIC in Portland, Ore., taking over for Joe Karas, who served in the role for 25 years. Chris Paris takes over as the new PIC of Santa Rosa and Napa, Calif., focusing on market opportunities in the area.

Beverly Hills, Calif.-based NSBN LLP (FY14 net revenue of $14.3 million) admitted Eric Adler, Tayiika Dennis and Carey Heyman to partnership on May 1. Adler provides advice on business growth, taxation and planning to the real estate, horse racing and entertainment industries. Dennis



provides audit and tax services for nonprofit organizations. Heyman provides accounting, audit, tax and consulting services to the real estate industry.

New York-based WeiserMazars LLP (FY13 net revenue of $142.4 million) announced that as part of its ongoing national expansion of the health care practice it has named principal Debra Bornstein as the new leader of the health care practice, replacing Ken Fischer.

Long Beach, Calif.-based Windes (FY14 net revenue of $24.1 million) admitted Michael Barloewen to partnership in its audit and assurance services practice. Barloewen joins Windes with more than 15 years of professional experience in accounting and auditing. Barloewen’s experience spans a wide range of industry experience, which includes the commercial real estate, oil and gas, media and entertainment, manufacturing and distribution, software development and nonprofit sectors. IPA

New York-based Berdon LLP (FY13 net revenue of $101 million) launched Berdon Fund Services LLC (BFS), a wholly owned affiliate. Michael Gottstein, an audit partner with Berdon and chair of BFS, has more than 20 years of experience in accounting and finance.

New York-based KPMG LLP (FY13 gross revenue of $6.1 billion) opened the first of several planned high-tech work environments designed to facilitate teamwork critical to the successful design and delivery of emerging solutions to its clients. Dubbed “Ignition Centers,” the environments are modeled after leading technology parks and business incubators around the world that feature dedicated, project-focused workspaces designed for information sharing, collaboration and increasing efficiencies during the creative process.

Fort Worth, Texas-based Weaver (FY14 net revenue of $88.1 million) launched a new IT advisory service that provides payment card industry (PCI) data security assessments. Brian Thomas, partner, and Brittany George, senior manager, both in Weaver’s IT advisory services, have earned the qualified security assessor (QSA) certification from the PCI Security Standards Council. This achievement positions Weaver as one of the few select accounting firms to offer this level of certification as a QSA company. IPA

The 2015 Annual Survey and Analysis of Firms…is

open to all accounting firms in North America. The results

of the survey is the annual IPA National Benchmarking

Report, which is one of the most complete, independent,

up-to-date sets of economic and management statistics

available about the accounting profession.

THE DEADLINE IS JUNE 5

Contact IPA regarding participation.

[email protected]

www.cpamerica.org • 352-727-4070

KEEP CLIMBING

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strengthen relationships, and bring prestige both domestically and internationally.

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May 2015, Vol. 29 No. 5

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