BDO USA Acquires Smith & Gesteland

Chicago-based BDO USA LLP (FY17 net revenue of $1.4 billion) announced an expansion of its Wisconsin practice through the addition of 85 staff, including 15 partners, from Smith & Gesteland LLP (FY16 net revenue of $15.4 million) of Middleton, Wis., effective July 1.

Smith & Gesteland provides accounting, tax, human resource management and information technology services to a client base of middle market businesses. The firm has an “80/20” consulting practice that helps clients focus on critical success factors to enhance profitability. S&G has significant strength in the construction, technology, manufacturing, nonprofit and real estate industries.

“I look forward to welcoming all of the partners and professionals of Smith & Gesteland to BDO USA. Our firm has demonstrated steady growth in the Madison market and this combination will greatly enhance our presence in both Madison and the greater Wisconsin market,” says Wayne Berson, CEO of BDO USA. “S&G’s entrepreneurial culture is a natural fit with BDO. They bring significant resources to our existing industry strengths in real estate, nonprofit, manufacturing, construction and especially technology, where we will be the dominant firm in the market.”

“In combining with BDO, we will form the leading firm serving middle market businesses in the Madison market, while providing both our clients and our people with additional opportunities for growth,” says Bill Pellino, MP of S&G. “Our clients will still receive the same close personal attention they have come to expect from our team, but now they will have access to a wider array of services, broader industry experience, and the full coverage of BDO’s extensive global network.”

Upon completion of the transaction, Pellino will serve as the Tax MP for BDO’s Wisconsin practice and Dan Kramer will continue in his existing role as BDO’s Assurance MP for Wisconsin.

“In all my years of consulting in the Wisconsin market, I cannot recall a firm more sought after by both national and regional suitors than S&G,” says Allan Koltin, CEO of Koltin Consulting Group, who advised both firms on the transaction. “In the end, S&G felt BDO’s culture – very similar to their own – was the right fit. They also valued the depth of resources BDO can provide their clients and the growth opportunities it provides their associates. BDO really valued S&G’s strong leadership and depth of talent.”