Archives for July 2012

UHY Opens New Haven Office

Chicago-based UHY Advisors Inc. (FY11 net revenue of $182.8 million) has returned to New England with a new office in New Haven, Conn., the Hartford Business Journal reported

After selling its 150-member New England practice, which included offices in Hartford and New Haven, to New York-based Marcum LLP (FY11 net revenue of $274.2 million) in 2010, the firm is back with restored confidence in the area’s economy and the middle market, says Michael Mahoney, MP of UHY Advisors’ New York City office.

West Virginia Firms Combine

Grigoraci, Paterno & Associates of Charleston, W.V., with about 14 employees, and Hayflich & Steinberg, of Huntington, W.V., with about 30 employees, have merged. The new entity is named Hayflich Grigoraci Professional LLC.

“Both firms offer the same level of personalized service and professionalism,” Hayflich & Steinberg MP John LaFear and Grigoraci, Paterno & Associates CEO Victor Grigoraci wrote in a letter to clients. “Because of this consolidation, the newly combined firm will have access to a larger pool of technical skills in tax and accounting services, as well as business management, and financial and consulting services.”

Both firms were independent members of BDO Seidman Alliance prior to the merger. The combined firm, which will continue in the same locations, also is a member of the alliance.

Boston-area Firm Celebrates 100 Years

Waldron H. Rand & Company of Needham, Mass., one of the oldest public accounting firms in the state, is celebrating its 100th anniversary.

It was founded in 1912 by Waldron Rand, a president of the American Institute of CPAs’ predecessor.

To mark the anniversary, the firm is launching a charity campaign to donate 1912 volunteer hours to the community. Waldron Rand employees will volunteer for a beautification project at the Franklin Park Zoo in August, and the firm’s shareholders, staff, clients and business partners will assemble at the Endicott Estate for an anniversary reception in October.

IPA’s 100 Accounting Firms – “We’re On The Move Again”

INSIDE Public Accounting (IPA) is pleased to present the 22nd annual report on the nation’s largest 100 firms, due out in early August.

IPA’s independent report and rankings are among the longest-running, most accurate and up-to-date for the nation’s largest accounting firms.

Quick Snap Shot: Despite all the economic turmoil we’ve seen in the past few years, the headline for the 2011/2012 season for the IPA 100 is “We’re On The Move Again.” Organic fee growth (excluding mergers) was 5.4% compared with the previous year’s lackluster 1.1% growth. It’s still not double digits, but there’s a bit more breathing room and opportunities are on the horizon. In 2010, 40 of the IPA 100 reported a contraction in fees; last year only six firms were in negative territory.

After a down year in ‘10, the Big 4 came roaring back in ‘11 with an overall growth rate of 12%, adding $3.6 billion to the top line, collectively accounting for $33.644 billion in revenues. As an aggregate group, the, other 96 firms collectively added $637 million in fees to the top line, accounting for $12.330 billion in revenues coming from both mergers and organic growth.

More details will be sent to subscribers in early August. There is movement among the IPA 100.

Moss Adams Acquires Napa Valley Firm

Seattle-based Moss Adams (FY11 net revenue of $323 million) is combining with Rabanal & Smith, an accounting firm with a long history in Napa Valley, Calif. The firms say the combination will strengthen Moss Adams’ ties to the wine industry while providing Rabanal & Smith’s clients with a broader set of resources and relationships important to their business success. The combination goes into effect Aug.1.

Partners Jennifer Rabanal and Amy Smith along with the rest of Rabanal & Smith’s employees will join Moss Adams, and the firm will add several more professionals to the Napa office in the coming months. In addition to a strong emphasis on the wine industry, the office will focus on clients in the hospitality, manufacturing, food and agriculture industries.

Moss Adams opened a branch in Santa Rosa more than 30 years ago and now has 70 staff. As the anchor for the firm’s Wine Industry Group, the office serves more than 200 wineries and vineyards in California, Oregon and Washington, the North Bay Business Journal reported.

Rosen Seymour Shapss… Names New MP

New York-based Rosen Seymour Shapss Martin & Co. (FY11 revenues of $51.7 million) has named Michael Bernstein the firm’s new MP, succeeding Martin Greenberg.

The firm also nmed David Ostrow, Administrative MP, a newly created position.Michael Bernstein states “I look forward to leading the firm and delivering the shared vision in today’s very challenging and demanding global environment. In times like this, RSSM has a major role to play and is committed to maintain the highest level of quality and integrity.”

“We are delighted to appoint David Ostrow as the firm’s Administrative MP,” Bernstein says. He has endless enthusiasm and he will support the firm in implementing and driving forward the firm’s strategy for growth.

No mention of Martin Greenberg’s plans for the future.

People In The News – July 25

Michael Bernstein has been named MP of Rosen Seymour Shapss Martin (RSSM) of New York City. Bernstein, PIC of the SEC Services Group and the Consulting and Due Diligence Services Group, succeeds MP Martin Greenburg. Also, David Ostrow, with 35 years of auditing and accounting experience at the firm, has been named administrative MP, a newly created position.

Miami-based MBAF has admitted seven professionals as partners. They are: Steven Blumenthal, Holly Condon, Mark Fenaughty, Michele Ferrara, Scott Goldberg, Micahel Moss and Manual Pravia.

Keith S. Dolabson has joined Los Angeles-based Gursey | Schneider as a partner in the tax and accounting department. Dolabson’s practice focuses on the income, fiduciary, estate, charitable giving and wealth transfer tax areas. Formerly, Dolabson was a founder/managing director of a large national CPA firm and prior to that a tax principal with an international professional services firm. Also, Brian J. Gray has joined the firm as a director in the tax and accounting department. He specializes in income, gift and estate tax planning, as well as compliance and audit defense for high net worth individuals and their business interests.

Julie Driedger has joined Greenville, S.C.-based Elliott Davis as client development director and will work with the firm’s Manufacturing and Distribution practice in the Charlotte, N.C., office.

Matthew Hallam has left his position as MP of the Washington, D.C. office of Baker Tilly Virchow Krause to become a partner at Oxpoint Holdings LLC, a company started last year by his brother, Nick, and another partner. Oxpoint will offer management consulting to emerging technology and government contracting companies. Hallam will stay on at Baker Tilly as a senior advisor. Todd Stokes, an 11-year veteran at Baker Tilly, will replace Hallam as office MP.

Eric Hananel has joined Jericho, N.Y.-based Grassi & Co. as a tax partner. Hananel has over 35 years of experience of tax consulting, compliance, financial statement income tax provision reviews and the management and administration of multi-national client accounts and a staff of professionals.

Baker Tilly Sues Insurance Carrier Over Liability Coverage

Chicago-based Baker Tilly Virchow Krause (FY11 net revenue of $259 million) is suing its insurance carrier for refusing to cover most of the damages after it was slammed with a $50 million verdict for negligence in May, Crain’s reported.

Baker Tilly in April sued Lexington Insurance Co. for breach of contract, alleging that the company failed to provide up to $40 million in professional liability coverage, as specified in a one-year contract in place when Aqua Finance’s lawsuit was filed.

“We feel there is no basis for this,” said Stephen Kravit, an attorney for Lexington. “They did not reveal the known issue concerning their potential liability for malpractice to Lexington at the time coverage was sought.”

The firm plans to appeal, calling the damages awarded in the case “excessive.”  A spokesman for Camico Mutual Insurance Co., which insures CPA firms, agreed that the size of the award for damages is “pretty unusual” for the industry.

Aqua Finance alleged in 2010 that the firm had a problem in the company’s accounting, but did not reveal it for a year. The firm dropped the account in 2008, leaving the company without audited financial statements. The company asserts that the firm “dramatically and catastrophically impeded the company’s crucial access to the credit necessary to maintain and grow its business,” according to the complaint.

Eide Bailly Accused of “Turning a Blind Eye”

Fargo, N.D.-based Eide Bailly (FY12 revenue of $157.7 million) has been accused of helping DBSI, a bankrupt property management company, defraud investors of hundreds of millions of dollars, according to a federal lawsuit.

Court papers allege that Eide Bailly “turned a blind eye” to misstatements in DBSI financial statements it audited and helped “company insiders” distort the financial health of the company by failing to disclose financial misrepresentations, the Idaho Statesman reported. Eide Bailly audited several of DBSI’s companies between 2004 and 2007, according to court papers.

The lawsuit was filed by two trusts attempting to recover assets from DBSI, which once managed up to 244 commercial properties.

McGladrey Makes The Windy City Home Base

McGladrey LLP (FY12 revenues of $1.3 billion) has chosen Chicago as its new corporate headquarters location, and the firm announced it would hire 300 to 500 professionals over the next five years. McGladrey is the largest accounting firm headquartered in the city.

The firm opened its first downtown office in 1985 and now has more than 1,000 employees. Minneapolis  previously served as the firm’s headquarters.