IPA Announces the IPA 100 Fastest-Growing Firms

IPA identifies the 10 fastest-growing IPA 100 firms based on reported organic growth in net revenue, without the influence of mergers. While growth with mergers represents the true growth, isolating organic growth provides insight into the strength of the growth engine of the firms.

This year’s IPA 100 Fastest-Growing Firms experienced an impressive average organic increase in net revenue of 17.3%.

 

The 2019 IPA 100 Fastest-Growing Organic Growth Firms

Whitley Penn LLP / Fort Worth, Texas / 24.4%
The Siegfried Group LLP / Wilmington, Del. / 23.2%
Schellman & Company LLC / Tampa, Fla. / 20.0%
Katz Sapper & Miler / Indianapolis / 16.3%
Gursey | Schneider LLP / Los Angeles / 16.2%
SVA Certified Public Accountants SC / Madison, Wis. / 15.8%
Friedman LLP / New York / 15.0%
Frazier & Deeter LLC / Atlanta / 14.8%
Andersen Tax / San Francisco / 13.8%
MGO LLP / Los Angeles / 13.0%

The 2019 IPA 100 All Growth Fastest-Growing Firms

IPA also identifies the 10 fastest-growing IPA 100 firms based on reported all growth in net revenue, including the influence of mergers.

Hogan Taylor LLP / Tulsa, Okla. / 31.0%
Baker Tilly / Chicago / 30.6%
Cohen & Company / Cleveland / 26.3%
Rea & Associates Inc. / New Philadelphia, Ohio / 23.4%
Rehmann LLC / Troy, Mich. / 23.3%
The Siegfried Group LLP / Wilmington, Del. / 23.2%
RKL LLP / Lancaster, Pa. / 21.5%
BerryDunn / Portland, Maine / 20.8%
Schellman & Company LLC / Tampa, Fla. / 20.2%
Moss Adams LLP / Seattle / 19.7%

Highlights of the 2019 IPA 100 Public Accounting Firms

  • Organic growth (excluding mergers) grew this year to 6.7%, up from 6.3% in 2018.
  • More than 110 acquisitions (both traditional CPA firms as well as other non-CPA firms) were reported, pushing the overall growth rate to 9.9%, also up slightly from the 2018 all-growth rate of 9.4%.
  • Organic growth in net income grew to 9.9% this year, an increase from 6.4% in 2018. Factoring in acquisitions, net income growth is up to 12.2%.
  • Average equity partner billing rates now top $450 per hour for the IPA 100.
  • Professional staff turnover (CPAs and other client-serving staff) averaged 16.2% for the IPA 100; with 1 in 5 IPA 100 firms averaging more than 20% professional staff turnover.
  • Eight female managing partners are now at the helm of the IPA 100 firms for the first time since IPA began tracking this data.
  • Average annual equity partner compensation at the IPA 100 is now $660,000.
  • One out of 11 equity partners / owners in a CPA firm are not licensed CPAs.

In-Depth Financial and Operational Benchmarking of the Accounting Profession

Financial and operational analysis of 550 public accounting firms will be published in late September in the 2019 INSIDE Public Accounting National Benchmarking Report.

Subscribe to the IPA newsletter to receive the upcoming benchmarking analyses and in-depth interviews with key leaders within the profession. IPA offers a complimentary news source, the IPA INSIDER E-News Update. Sign up online.

Purchase any of the 2019 IPA benchmarking products, including the IPA National Benchmarking Report, to gain insider strategies.

To interview or engage the partners at INSIDE Public Accounting, please contact Chelsea Summers at (317) 733-1920 or csummers@plattgroupllc.com.

Visit the 2019 IPA 100, 200, 300 and 400 rankings

Order your 2019 IPA Benchmarking Tools

 

 

INSIDE Public Accounting Releases Annual Ranking of the Top 400 Accounting Firms

The publishers of INSIDE Public Accounting (IPA), the award-winning newsletter for the public accounting profession, today released the annual ranking of the nation’s 400 largest public accounting firms.

Rankings of The IPA 100…Now in its 29th year, the IPA 100 lists the 100 largest public accounting firms in the U.S., by net revenue. The IPA 100 is made up of the Big 4, which collectively generated over $60 billion in U.S. revenue last year, and 96 national, regional and local firms. The annual rankings and accompanying analysis paint a comprehensive picture of the state of the profession.

Newcomers to The IPA 100…Three firms debuted on the IPA 100 in 2019: No. 91 Tulsa, Okla.-based HoganTaylor LLP; No. 98 Houston-based Briggs & Veselka Co.; and No. 99 Clifton, N.J.-based Sax LLP.

The 2019 IPA 400 Firms…IPA also ranks the next tier of accounting firms, Nos. 101-400.

The 2019 IPA 400 rankings can be accessed here.

Highlights of the 2019 IPA 100 Public Accounting Firms…The Big 4, Deloitte, PwC, EY and KPMG collectively make up nearly 75% of the total U.S. revenue of this year’s IPA 100. Due to their size, IPA excludes metrics of the Big 4 in its analysis. The remaining 96 firms represent $22.2 billion in total revenues and employ more than 100,000 staff. Excluding the Big 4, 45 firms are represented in the IPA $100 Million Club, all with annual revenues exceeding $100 million.

  • Organic growth (excluding mergers) grew this year to 6.7%, up from 6.3% in 2018.
  • More than 110 acquisitions (both traditional CPA firms as well as other non-CPA firms) were reported, pushing the overall growth rate to 9.9%, also up slightly from the 2018 all-growth rate of 9.4%.
  • Organic growth in net income grew to 9.9% this year, an increase from 6.4% in 2018. Factoring in acquisitions, net income growth is up to 12.2%.
  • Average equity partner billing rates now top $450 per hour for the IPA 100.
  • Professional staff turnover (CPAs and other client-serving staff) averaged 16.2% for the IPA 100; with 1 in 5 IPA 100 firms averaging more than 20% professional staff turnover.
  • Eight female managing partners are now at the helm of the IPA 100 firms for the first time since IPA began tracking this data.
  • Average annual equity partner compensation at the IPA 100 is now $660,000.
  • One out of 11 equity partners / owners in a CPA firm are not licensed CPAs.

“As firms continue to expand service lines and seek to hire the most qualified staff to serve clients in many non-traditional services, we’re seeing more non-CPA professionals in the ranks of the IPA 100,” says Mike Platt, principal with INSIDE Public Accounting. “In fact, we discovered that 28% of all client-serving professionals at IPA 100 firms indicated they have no intentions of pursuing a CPA license.”

In-Depth Financial and Operational Benchmarking of the Accounting Profession…Financial and operational analysis of 550 public accounting firms will be published in late September in the 2019 INSIDE Public Accounting National Benchmarking Report.

Subscribe to the IPA newsletter to receive the upcoming benchmarking analyses and in-depth interviews with key leaders within the profession. IPA offers a complimentary news source, the IPA INSIDER E-News Update. Sign up online.

Purchase any of the 2019 IPA benchmarking products, including the IPA National Benchmarking Report, to gain insider strategies.

To interview or engage the partners at INSIDE Public Accounting, please contact Chelsea Summers at (317) 733-1920 or csummers@plattgroupllc.com.

blumshapiro Merges In Cowan Bolduc Doherty

West Hartford, Conn.-based blumshapiro (FY18 net revenue of $83.4 million) has announced a merger with Cowan Bolduc Doherty (CBD) of North Andover, Mass.

The combination with CBD will expand the firm’s presence in Massachusetts to five locations, adding 20 professionals, including three partners.

“CBD’s strong and well-respected team of auditing, accounting and tax experts – and their reputation for providing exceptional client service – greatly complements blumshapiro and further supports our commitment to provide our clients the personal level of service that has contributed to our firm’s success,” says blumshapiro CEO Joseph A. Kask.

Stephen J. Doherty, partner at CBD, says, “Since our founding in 1988, CBD has fostered strong relationships with our clients in northeastern Massachusetts. For more than 30 years we have embraced growth and change, and this merger with blumshapiro is a natural next step in providing our clients with more resources while maintaining the personalized commitment they have come to expect from CBD.”

“This combination helps extend blumshapiro’s reach and leadership serving entrepreneurial clients in the Boston market,” says Gary Adamson, CEO of Adamson Advisory LLC, the advisor to both firms on this merger. “Cowan Bolduc Doherty has been a leader serving the Boston market for many years and was attracted to blumshapiro because of their outstanding talent pool and extensive range of services focused on the middle market.”

The merged firm will adopt the blumshapiro name. The North Andover office will join blum locations in Boston, Newton, Quincy and Worcester, Mass. The firm also has offices in West Hartford, Shelton and Marlborough, Conn., and Cranston, R.I.

More news from blumshapiro

Wipfli Builds Hedge Fund Niche with Acquisition of Patke & Associates

Milwaukee-based Wipfli LLP (FY19 net revenue of $362.5 million) announces that the shareholders and associates of Patke & Associates of Lincolnshire, Ill., have joined the firm.

The 12 professionals from Patke & Associates will join more than 2,300 professionals at Wipfli, including approximately 250 in the Chicago area. The firm will do business as Wipfli.

“The addition of Patke & Associates provides Wipfli with an opportunity to add specialized resources and build a special industry niche focused on hedge funds,” says MP Kurt Gresens. “Given our combined knowledge and strength in the financial institutions and financial services industry and our shared dedication to our clients and helping them achieve their goals, this is an excellent addition for our firm.”

Paul Patke, managing shareholder of Patke & Associates, says, “For our clients, this will broaden and deepen the specialized services we can provide, allowing our team to continue to meet clients’ needs as they face new challenges in the years ahead. For our associates, the combination will provide advanced training opportunities and increased career opportunities as they become associates in a larger firm.”

Allan D. Koltin, CEO of Koltin Consulting Group who advised both firms on the transaction, says Wipfli is “very strategic in their selection of firms they invite to join them and very disciplined in their commitment to ‘going deep’ in the industries in which they specialize.” He adds, “Patke loved the opportunity to take their hedge fund practice to the next level and expand their service offerings to their clients and contacts in the financial services industry.”

Founded in 1990, Patke & Associates serves more than 100 global investment funds. Patke & Associates’ services include investment partnership and hedge fund audits, surprise examinations for RIAs and tax planning and preparation.

More news from Wipfli

Prager Metis Acquires Frank & Company

New York-based Prager Metis (FY18 net revenue of $98.2 million) announced it has acquired Frank & Company of McLean, Va.

The combination will expand Prager Metis’ presence into the Washington, D.C., area. Robert Frank, Marnette Myers and Matthew Frank will join Prager Metis and be admitted as partners. Scott Davis will join as principal. Frank & Company will remain in their office located at 1360 Beverly Road.

“We have been looking for a CPA firm in the D.C. Metro area that shares our values and standards of proactive service so that we can better serve our clients and expand our footprint into the region. We chose to combine with Frank & Company due to their reputation for excellent client service,” said Lori Roth, MP of the Northeast region for Prager Metis.

Frank & Company, founded over 40 years ago, is built on the core belief that their clients are their most important resource. The firm provides audit, tax and advisory services to a broad range of individuals, small and mid-size businesses, government contractors, not-for-profit organizations and real estate entities.

“Prager Metis has a level of expertise and a growing reputation that is unique for an accounting firm of its size,” says Robert Frank. “Their firm culture and desire to expand their presence into the metropolitan D.C. area fit so well with our background and expertise that we feel Prager Metis is not only a perfect fit for our firm but for our clients as well.”

More news from Prager Metis

Association of Government Accountants Elects Officers

Ernie Almonte, partner at Chicago-based RSM (FY19 net revenue of $2.4 billion), has been elected national president of the Association of Government Accountants for a one-year term, and Wendy Morton-Huddleston, principal at Chicago-based Grant Thornton (FY18 net revenue of $1.9 billion) was elected president-elect.

Almonte works in RSM’s Boston not-for-profit/public sector industry team. He is former chair of the AICPA and former auditor general of the state of Rhode Island.

Morton-Huddleston has worked with more than 19 federal agencies in her career. She will serve as national president from July 1, 2020 through June 30, 2021.

The Association of Government Accountants is a member association for government financial management professionals. It is governed by a 17-member national governing board, made up of volunteer member leaders.

INSIDE Public Accounting Names The 2019 Excellence in Firm Culture Winners

INSIDE Public Accounting (IPA) is honoring seven firms with its inaugural Excellence in Firm Culture award, based on the results of an assessment of 2,000 staff members at 21 firms.

The Excellence in Firm Culture award recognizes firms that have demonstrated excellence in 12 core qualities of culture collected by IPA partner CultureIQ, the corporate culture experts that helped IPA administer the 2019 Excellence in Firm Culture Assessment. IPA also considered the firms’ employee Net Promoter Scores in determining the winners.

Excellence in Firm Culture award winners achieved at least 75% of the total possible score in the combined 12 core culture qualities as well as a minimum of 75% of the total possible employee Net Promoter Score.

Four of the seven winners are located in the West:

  • Bland & Associates PC, Omaha, Neb.
  • Cooper Norman CPAs & Business Advisors, Idaho Falls, Idaho
  • Richey May & Co. LLP, Englewood, Colo.
  • Stockman Kast Ryan & Co. LLP, Colorado Springs, Colo.
  • Sweeney Conrad PS, Bellevue, Wash.
  • WilkinGuttenplan, East Brunswick, N.J.
  • Williams Benator & Libby LLP, Atlanta

The 12 core qualities measured in the Culture Assessment: Agility; Alignment; Collaboration; Customer Centricity; Empowerment; Engagement; Growth Development; Innovation; Quality; Recognition and Rewards; Trust and Integrity, and Work-life Balance.

Across All 2,000 Participants:

  • Respondents scored Quality as the highest core quality with Collaboration as the second-highest core cultural quality.
  • Empowerment scored third to lowest, among the 12 core qualities. Equity and Non-Equity Partners on average scored above a 90 (of a possible 100), while the 3- to 5-year professional staff group on average scored below 70. Men were more positive about Empowerment. As firms get larger, the difference between the genders becomes profound. Women feel most empowered in the smallest firms and least empowered in the largest firms. Women are 11 percentage points behind men in the Empowerment ranking for firms of more than $30 million.
  • Eight in 10 respondents feel positively about Engagement within their firms.
  • The majority of respondents felt positive about Innovation within their firms.
  • Recognition and Rewards falls to the bottom of the core qualities of culture for these respondents. The two biggest disconnects are the perceptions between Equity Partners and Administrative / Support Staff and Equity Partners and Professional Staff.
  • Trust and Integrity scored high among these public accounting firms. As a group, respondents ranked Trust and Integrity 12 percentage points higher than the CultureIQ 2018 Financial Services Benchmark.
  • The holy grail of firm culture – Work Life Balance – is ranked consistently high among all demographics, with three in four respondents feeling positive about this quality in their firm. Again, as was seen in the Recognition and Rewards quality, the biggest disparities are seen between Equity Partners and Administrative / Support Staff and Equity Partners and Professional Staff.

To participate in the 2020 Excellence in Firm Culture Assessment, email IPA at culture@plattgroupllc.com.

Mazars Announces Alliance with 4 Regional U.S. Firms and MNP in Canada

Mazars, the Rouen, France-based accounting firm, is expanding its presence in the U.S. through an alliance with five of the top 20 firms in the U.S. and Canada.

Mazars announced that the Mazars North America Alliance would include the following firms: Springfield, Mo.-based BKD (FY19 net revenue of $662.9 million), Seattle-based Moss Adams (FY18 net revenue of $691 million), Southfield, Mich.-based Plante Moran (FY18 net revenue of $542.1 million), Charlotte, N.C.-based Dixon Hughes Goodman (FY19 net revenue of $462.5 million) and Calgary, Alberta-based MNP, with net revenue of roughly $760 million.

Mazar’s CEO, in an interview with Reuters July 11, said the move will almost double its size as a way to challenge the market dominance of the Big 4. “Our ambition is to become a European champion with an international scope,” Mazars’s CEO Herve Helias told Reuters. “When they call me the fifth big, I like it.”

Mazars would not take any stake in the firms, but will expand services to its existing international clients through professionals from some of largest firms in North America. Mazars, with about 24,000 professionals worldwide, will increase that number to about 40,000 under the alliance.

According to the Financial Times, the alliance formation may be related to a belief that the U.K. will begin to require two auditors for the 350 largest companies as part of a reform effort following prominent audit failures among the Big 4. The Times says the firm is familiar with the joint-auditor system, as top companies in France has worked under the requirement for many years.

Mazars has also been in the news for another reason: The U.S. House of Representatives oversight committee has issued a subpoena to its U.S. branch, New York-based Mazars USA (FY18 net revenue of $205million), to obtain President Donald Trump’s tax records.

And on July 12, in a hearing in the U.S. Court of Appeals, Trump’s lawyer faced more than an hour of tough questions over his arguments that lawmakers don’t have the power to investigate the president. “President Donald Trump appeared to be facing an uphill battle to keep Congress from obtaining his financial records,” USA Today reported. The oversight committee’s attorneys have argued that it has broad and inherent power to investigate possible conflicts of interest.

More news from Mazars USA

Marcum Merges in The Abrix Group

Thomas Frank

New York-based Marcum (FY18 net revenue of $549.7 million) expanded further into the Midwest by merging in The Abrix Group of Northbrook, Ill.

Abrix, a business management and accounting firm focused exclusively on the health care industry, adds four partners and 22 associates to Macum’s Illinois offices.

Abrix specialized in helping medical and dental practices with their organizational, business and financial issues, as well as the business and personal needs of individual practitioners. The firm’s services included tax, accounting, business development, regulatory issues, Medicare fraud and abuse, practice mergers, practice valuations, profit formulas, and retirement planning and administration.

“Abrix’s unique expertise in the nuances of medical and dental practice management will be an additional asset to our health care clients regionally and nationally, as we continue to grow our presence in the Chicago area,” says Cary Buxbaum, Marcum’s regional MP in Illinois.

“It is a tremendous opportunity for our firm to be able to bring the national resources of Marcum to our clients, while bringing a specialized focus on the practice side of the health care industry into their service mix,” says Thomas Frank, Abrix MP.

More news from Marcum

Brad Smith Assumes MP Role at MCM CPAs & Advisors

Brad Smith

Louisville, Ky.-based MCM CPAs & Advisors (FY18 net revenue of $56.8 million) has transitioned the MP role to Brad Smith, the firm’s former assurance services team leader. Smith, who has been with the firm for the past 17 years, is replacing Diane Medley, who will assume the role of executive chairman at MCM.

They’ve been working together on the transition for the past year. “The accounting profession is evolving, and we’re responding to those changes, but I want to ensure we’re always building on the strong foundation provided by our firm’s founders,” Smith says.

Smith will lead the strategic direction of the firm for its nearly 350 employees who work across its five offices in Kentucky, Indiana and Ohio. He will steward MCM from a business perspective, lead client service and growth initiatives, and work with the firm’s partners and industry and service leaders to set and achieve short- and long-term objectives.

In her new role as executive chairman, Medley will remain with MCM full time and continue to work with select clients, manage firm governance and lead several strategic initiatives. She will also take on a strategic leadership role with Meritrust Wealth Management, an MCM-affiliated financial services firm that she originally founded. She will continue to represent the firm through her various community leadership roles.

Smith’s primary focus with clients is middle market growth-oriented companies in the manufacturing, distribution, services and construction industry niches. He is also active in community endeavors.

“I know that Brad will always have the best interest of MCM’s clients, partners and team members in the forefront of his vision and execution of strategy for the firm,” says Medley.

More news from MCM CPAs & Advisors