Watkins Meegan Merger Deal Not Quite What They Expected

When Bethesda, Md.-based Watkins Meegan (FY08 net revenue of $41 million) entered into the recent merger with founding partner, Kurt Sturn of Annapolis, Md.-based Sturn Wagner Lombardo & Co., WM expected much more than they got.

According to published reports, WM expected Sturn to bring along his entire book of business and five to 10 other professionals. What WM got was Sturn and only two of his former colleagues, one of whom had previously left the firm. According to The Washington Business Journal, some but not all of Sturn’s former clients followed Sturn and his team. “Some of Sturn’s clients elected to seek professional services from other providers,” says Sean Roddy, COO of WM, declining to be more specific.

In early January, Sturn Wagner Lombardo & Co. dissolved and two former partners, Andrew Lombardo and Matthew Wagner, merged with J. Brian Stitcher, owner of SRM & Co., to form a new firm, Lombardo Wagner Stitcher and Co. Lombardo, commenting on the split, attributed it to differences in “philosophies of how we want to do business, so we went our separate ways.” Lombardo will be MP of the newly created firm, Stitcher will be PIC of advisory and entrepreneurial business services, and Wagner will be PIC of tax services.