Mitchell & Titus Leaves Ernst & Young Network

New York based-Mitchell & Titus, the largest minority-owned accounting firm in the U.S., has decided to end its membership in the Ernst & Young Global network, Accounting Today reported.

M&T will return to being an independent, non-network firm as of Oct. 30, 2015, giving the firm new opportunities to service clients, attract prospective clients and develop its people, M&T chair and CEO Anthony Kendall told Accounting Today.

He says the split was agreed upon mutually. “We decided that it was in the best interest of both firms, not just M&T but also Ernst & Young, that we transition from the membership,” says Kendall. “The primary driver and factor behind that was the constraints that we face. Both firms face constraints from an independence point of view. Even though M&T and EY were separately owned entities from the regulator’s point of view, we were viewed as one.”

Kendall believes the move will allow his firm to develop new service areas. “We are making some large differential investments in people and technology so that we can offer additional services to our current clients, and also services that we think prospective new clients may want,” he said.

He does not expect the change to have a major financial impact on either firm or their clients. M&T earns between $25 million and $50 million in annual revenue, Accounting Today reported.

“We have this rich legacy and history of 40 years. We’re an organization where people from all different backgrounds and ethnic groups can come and they can be their authentic selves and they can feel comfortable working in an environment. We love to have the opportunity to develop our people and to nurture them. We think this is going to afford us many more opportunities for our clients and for our people, and we’re looking forward.”