Marcum LLP and Friedman LLP, two High 50 Corporations primarily based in New York, mentioned Tuesday they plan to mix in an enormous deal to create a agency underneath the Marcum model with roughly $1 billion in annual income and greater than 3,400 associates when the deal closes this summer time.
Marcum ranked No. 15 on Accounting At present’s 2022 listing of the High 100 Corporations, with $799.08 million in annual income, roughly 370 companions and over 2,500 staff. Friedman ranked No. 33, with $178 million in income, greater than 100 companions and 760 staff.
The merger is anticipated to deepen each corporations’ experience in providers similar to public firm audit and assurance, digital property, cybersecurity, actual property, development, and different advisory providers.
The mixed agency shall be one of many largest serving Chinese language firms listed on the U.S. inventory markets. It’s going to proceed to be headquartered in New York Metropolis, with workplaces throughout the nation, in addition to in China, Eire and Grand Cayman. By merging into Marcum, Friedman purchasers will get entry to expanded providers, together with strategic data expertise consulting and wealth administration.
“Marcum and Friedman share frequent roots within the New York space, in depth histories of remarkable consumer service, comparable employee-oriented cultures, and a dedication to main in rising progress areas in our career,” mentioned Marcum chairman and CEO Jeffrey Weiner in an announcement. “We view this transaction as a really pure match and are enthusiastic about our shared future collectively.”
Marcum LLP Chairman and CEO Jeff Weiner
Courtesy of Marcum LLP
Weiner is anticipated to take care of each management roles as soon as the proposed transaction is accomplished. In line with sources, he’s utilizing a $200 million line of credit score to pursue merger offers similar to this one to compete in opposition to non-public fairness corporations which have been doing M&A offers within the accounting career. A Marcum spokesperson declined to remark.
Friedman is led by a pair of co-managing companions, Harriet Greenberg and Fred Berk, who’ve lengthy managed the agency.
“Friedman has skilled file progress, hiring, and revenues over the previous two years, giving us a place of energy from which to think about our subsequent strategic transfer,” Berk mentioned in an announcement. “After in depth discussions, it turned clear to us that combining our sources with Marcum could be in one of the best pursuits of our purchasers, companions and staff.”
“Friedman has been lucky throughout its historical past to develop by selective mergers, the addition and retention of nice purchasers, and the considerate contributions of staff at each degree of our agency,” Greenberg mentioned in an announcement. “Becoming a member of with Marcum is the subsequent logical step in that evolution. Our complementary practices and entrepreneurial mindsets type a robust basis for long-term strategic progress.”
Friedman co-managing companions Harriet Greenberg and Fred Berk
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Marcum incessantly does M&A offers. In February, it added RotenbergMeril CPAs, a agency in Saddle Brook, New Jersey. In December, it expanded into Missouri by merging in BWTP in St. Louis. Final Might, it added Starter-Fluid LLC, a finance-outsourcing agency in Boston. Friedman just isn’t concerned in as many M&A offers, however final July it merged in Bohlmann Accounting Group in Miami, and in 2019 it added Markowitz, Fenelon & Financial institution on Lengthy Island.