What's Happening?
Dixon Hughes Goodman LLP (DHG), based in Charlotte, North Carolina, is merging with BKD CPAs & Advisors from Springfield, Missouri. This merger will create a combined accounting firm with $1.4 billion
in revenue, positioning it among the top 10 accounting firms in the United States. The merger, described as a 'merger of equals,' is set to be effective on June 1. The new firm will employ over 5,400 individuals across 68 markets in 27 states, as well as in the United Kingdom and the Cayman Islands. BKD CEO Tom Watson will lead the new organization, while DHG CEO Matt Snow will serve as the firm's chair. The merger aims to enhance client services by combining resources and expanding capabilities in various service sectors.
Why It's Important?
The merger between DHG and BKD is significant as it creates one of the largest accounting firms in the U.S., enhancing its ability to serve a broader range of clients with more innovative and client-centric services. This consolidation reflects a trend in the accounting industry where firms are merging to increase their market presence and service capabilities. The merger is expected to provide opportunities for growth and expansion, particularly in strategic markets and globally. It also highlights the competitive nature of the accounting industry, where firms are seeking to strengthen their positions through mergers and acquisitions.
What's Next?
The integration process for the merger is expected to take 18 to 24 months. During this period, the firm will focus on combining resources and aligning operations to maximize the benefits of the merger. There is potential for strategic expansion into new markets and an increase in global reach. The firm plans to approach the integration with a 'people-first' strategy, prioritizing the interests of team members. While the possibility of layoffs was not addressed, the demand for accounting professionals suggests that the merger could create more opportunities rather than job losses.
Beyond the Headlines
The merger between DHG and BKD could have broader implications for the accounting industry, potentially influencing other firms to consider similar mergers to remain competitive. It may also impact smaller firms, as some clients might prefer the personalized service offered by smaller entities. The merger underscores the importance of scale and resources in providing comprehensive services to clients, particularly in sectors like healthcare, financial services, and private equity.
