M&A roundup: Firms merge and demerge

Details: WithumSmith+Brown PC, a Top 25 Firm based in Princeton, New Jersey, has expanded in Florida by merging in Martinez & Associates, a firm in Winter Springs, Florida that focuses on clients in the automotive and government-contracting sectors.

As part of the deal, Martinez's four team members will join Withum's Orlando office on Jan. 1, 2023. Financial terms of the deal were not disclosed. Withum ranked No. 24 on Accounting Today's 2022 list of the Top 100 Firms. The firm has 20 offices and annual revenue of $450 million.

"We are very enthusiastic about joining forces with Withum and believe this union will take us to the next level in client service," said Martinez & Associates managing partner Jorge Martinez in a statement Friday. "Martinez & Associates and Withum share a commitment to providing world-class service to businesses in Florida, particularly those in the automotive and government contracting industries. This was essential in our decision to join our practice with Withum, and we look forward to continuing to service our clients under the Withum brand."

His staff will be working with Withum's government contractor and auto dealership service teams. 

"We're thrilled to welcome Martinez & Associates to our team," said Russell Goldberg, partner-in-charge of Withum's Orlando office, in a statement. "We're looking forward to collaborating with them and adding their expertise to our repertoire, growing our local and industry practices, particularly the automotive and government contractor teams."

In February, Withum expanded to the Los Angeles area by merging in Martini Partners, a firm based in Encino, California. Withum also did a number of M&A deals last year. Last November, Withum added Glick & Associates, a firm based in San Francisco, and Restivo Monacelli in Providence, Rhode Island. Last October, Withum added Maffei, Masiello & Co., a firm based in Mendham, New Jersey. In July, it added OUM & Co., a firm headquartered in San Francisco. In January, Withum merged in the Doyle Carden Group, a New York-based private investigative firm.

Details: Fandl LLC, a tax advisory firm based in Ridgewood, New Jersey, and the Gagnon Group LLC, a tax consulting and technology firm based in Boston, plan to merge to form FandlGagnon LLC, effective Jan. 1, 2023.

The combination will create a national firm with a wider range of tax services. Both firms were founded by former Big Four tax partners and have been offering tax consulting, compliance and technology services to Fortune 500 and middle-market companies.

"We're incredibly excited at this coming together of our two firms," said Gagnontax president Bill Gagnon in a statement last week. "We're very well aligned in our goal to collaboratively develop and execute strategies and processes that help our clients create cost efficiencies while minimizing the impact of taxes on their financial performance."

Through their membership in BOKS International, a global alliance of nearly 100 professional service firms, FandlGagnon will be able to help tax clients across the world.

 "We have a deep appreciation for the trust and confidence our clients have placed in our individual firms," said Fandl managing partner Glen Fandl in a statement. "We are confident that the FandlGagnon merger will only further enhance the value of our services for our clients."

Details: Elliott Davis and Whitley Penn, a pair of Top 50 Firms, have canceled their earlier plans to combine. 

The two firms announced the merger in June, saying they would form a firm with a combined $400 million in annual revenue. Whitley Penn, based in Fort Worth, Texas, ranked No. 40 on Accounting Today's 2022 list of the Top 100 Firms, with $164.8 million in annual revenue. Elliott Davis, headquartered in Greenville, South Carolina, ranked No. 45, with $141 million in annual revenue.

However, the two firms have reportedly called off plans for the merger, according to a spokesperson for Whitley Penn. Whitley Penn managing partner Larry Autry told Inside Public Accounting that the two firms' cultures did not match. "We just decided that rather than force two cultures together we could thrive separately," said Autrey. "We're both good at what we do. We're high-performing firms and will continue to be." 

Going Concern reported that the merger did not close on Nov. 1 when it was originally scheduled.