Maryland based accounting firm Reznick Group has announced plans to merge with J.H. Cohn, an out-of state firm that ranks among the best in its region. The combined company, whose headquarters will be located outside of Maryland, is slated to become the nation's 11th largest accounting firm if the deal is successful.
While the sales terms of the merger have not been released, the CEO of J.H. Cohn explained that both companies contributed comparable amounts of equity. The companies' current CEOs will serve as co-CEOs for three years after the deal is finalized, after which time both will step down. Neither will seek election as the company's new CEO. At that time, each company will possess an equal number of executive board votes, though it is unclear whether this remains true for the following CEO election.
The combined firm, which will be known as either Cohn Reznick or J.H. Cohn Reznick, is expected to see a 10 percent increase in staff size within a year of the merger. As is, the combined company would have 25 offices employing over 2,000 offices. The company would see over $450 million in revenue.
Reznick Group's CEO spoke out in support of the plan, stressing the potential power of the combined firm. "The synergies and opportunities this combination of equals brings to our clients and staff is nothing short of historic," he explained.
J.H. Cohn's CEO also praised the merger, saying that the combined company will combine Reznick's experience in real estate practice with J.H. Cohn's regional presence and name recognition. In fact, J.H. Cohn has already signed on a Reznick Group to help it build experience in real estate accounting. The combined company will also provide improved private equity and government accounting.
Currently, Reznick Group specializes in housing market, bank and financial services firm accounting services, while J.H. Cohn offers accounting services mainly for tax and business consulting, auditing and account services.
Source: Crain's New York Business, "Accountants merge to become No. 11 firm in US," Emily Laermer, May 22, 2012