M&A roundup: CLA, Withum, Marcum and GBQ expand

CliftonLarsonAllen, a Top 10 Firm, has expanded in the Midwest by acquiring Gilmore Jasion Mahler Ltd., a firm in Toledo and Findlay, Ohio, effective Jan. 1, 2023.

GJM provides assurance, business and transaction advisory, outsourced accounting, risk advisory and tax services in various industries, including construction and real estate, health care, manufacturing and distribution, nonprofit, private equity, and utilities. As part of the deal, more than 120 former GJM team members, including 22 partners, will be joining CLA's Ohio team, increasing it to more than 240 people across the state, including 150 in Toledo alone. CLA has a total of more than 8,500 employees across the firm, including over 1,200 principals and signing directors.

Financial terms of the deal were not disclosed. GJM earned annual revenue of $20 million and has 22 partners and over 120 employees. CLA earned approximately $2 billion in annual revenue and ranked No. 8 on Accounting Today's 2022 list of the Top 100 Firms.

"We've always held ourselves accountable to the highest of standards, whether in how we serve clients, how we work together as a team, or how we give back to our communities," said GJM managing partner Kevin Gilmore in a statement Tuesday. "Joining CLA brings an exciting new chapter for our firm and is simply the next step forward as we continue to live our values."

GJM was established in 1996 and is the largest locally owned public accounting firm in Northwest Ohio.

"Kevin and the GJM team are known for their innovative approach, trusted advice, and industry experience," said CLA chief geographic officer Scott Engelbrecht in a statement. "The opportunity to deepen our service and reach leaders in key industries across Ohio is in lockstep with CLA's promise to know and help our clients, our people, and our communities."

Last year, CLA did a number of mergers and acquisitions, including with Hayashi Wayland in Salinas, California, Concannon Miller in Florida and Pennsylvania, and Price CPAs in Nashville, Tennessee.

WithumSmith+Brown PC, a Top 25 Firm based in Princeton, New Jersey, has added O'Connor & Drew, a firm headquartered in Braintree, Massachusetts, effective Jan. 1, 2023.

As part of the deal, O'Connor & Drew's 18 partners and approximately 110 team members will join Withum but remain at their locations in Braintree and Winchester, Massachusetts. Withum has 20 offices, 226 partners, approximately 2,000 staff members and annual revenue of $450 million. O'Connor & Drew's annual revenue is $17 million. The firm ranked No. 24 on Accounting Today's 2022 list of the Top 100 Firms.

The deal will expand Withum's footprint in New England. "O'Connor & Drew's people-first culture blends seamlessly with ours," said Withum managing partner and CEO Pat Walsh in a statement Monday. "Our combined teams share the vision of providing best-in-class, innovative solutions for our clients' growth and success. It's the Withum Way of doing things that our clients appreciate, with our reputation of acting with the highest level of ethics and integrity alongside our industry expertise and forward-thinking mindset to help them achieve their goals."

Both firms provide accounting and advisory services to clients in the automobile dealership, nonprofit, education, manufacturing, real estate and construction sectors.

"We are very excited and honored to become a part of the Withum family," said O'Connor & Drew managing principal Mark V. Dow in a statement Monday. "The two main goals of our practice have always been to provide exceptional service to our clients and to create an employee-centric work environment allowing our staff members to grow and thrive. It is for these reasons and countless others that joining forces with Withum will provide our valued clients and our dedicated employees with more opportunities than we ever thought possible."

Last month, Withum added Martinez & Associates, a firm in Winter Springs, Florida. Last February, Withum expanded to the Los Angeles area by merging in Martini Partners, a firm based in Encino, California.

Marcum LLP, a Top 20 Firm based in New York, has added Melanson, P.C., a Regional Leader firm in Merrimack, New Hampshire, effective Jan. 1.

As part of the deal, Melanson's 13 partners, 100 associates and four offices in Maine, Massachusetts, and New Hampshire will become part of Marcum's New England region, joining Marcum's eight existing offices in New England.

Financial terms of the deal were not disclosed. Marcum ranked No. 15 on Accounting Today's 2022 list of the Top 100 Firms, with $799 million in annual revenue in 2021. Marcum's projected 2022 revenues for the fiscal year ending Dec. 31 are $1 billion. 

Melanson, founded in 1976, specializes in the government and nonprofit sectors, as well as managed accounting services. "The Melanson team is highly regarded for their leadership, commitment to superior client service and dedication to the highest industry standards," said Marcum chairman and CEO Jeffrey Weiner in a statement Monday. "They ran a highly respected and accomplished firm, and we warmly welcome them to Marcum."

Melanson ranked No. 12 on Accounting Today's Regional Leaders list for the Top Firms in New England, with $17.86 million in annual revenue.

Koltin Consulting Group CEO Allan D. Koltin advised both firms on the combination. "Marcum continues to have success with their geographic strategy of finding best-in-class regional leaders to join their firm," he said in a statement. "Melanson was one of the preeminent firms in New England, and their combination with Marcum should produce great growth and long-term value for both."

"The entire Melanson team strongly complements Marcum's industry strengths in the government and nonprofit sectors, while expanding our New England presence," said Anthony Scillia, Marcum's New England regional managing partner, in a statement. "They will be a key asset to our clients and our team as we continue to grow in this region." 

Last month, Marcum added E. Cohen and Co., CPAs, a Regional Leader firm in Rockville, Maryland. In September, it completed a megamerger with another top firm, Friedman LLP. Other recent deals included a merger in February with RotenbergMeril CPAs, a firm in Saddle Brook, New Jersey.