M&A roundup: EY, Withum, EB&K and Harris expand

Details: Ernst & Young has acquired Tao Leadership Limited (Tao), a consulting firm in Newcastle upon Tyne, U.K., that focuses on helping companies with organizational transformation and culture change.

Tao was founded in 2013 and its technology combines organization network and behavioral science with analytics using a 12-week accelerated approach to business transformation. Tao will bring three technologies to the EY organization: an organization network analysis and cultural analytics visualization engine; an analytics and behavior change platform that tries to reinforce positive workforce behavior through heightened self-awareness; and a mobile app that captures anonymized feedback, which is then used to develop behavior-based action plans. EY ranked No. 3 on Accounting Today’s 2021 list of the Top 100 Firms. The firm earned $40 billion in global revenue in fiscal year 2021.

The acquisition closed Monday and includes a 100% share purchase of Tao by EY Global Services Limited. As a result of the deal, Tao’s entire team will transfer to EY. Services will be offered by teams, particularly within EY People Advisory Services, to businesses across the world in various sectors, including global corporations and listed businesses.

“This is a hugely exciting acquisition for the EY organization,” said EY Global People Advisory Services deputy leader Liz Fealy in a statement Monday. “Supporting clients by putting humans at the center of transformation is a growing part of EY work, and behavioral change is a critical component of any transformation. Tao’s innovative products complement the EY broad capabilities in this area and bring a new dimension to the service offered to EY clients. We are delighted to welcome the Tao team to the EY organization.”

EY People Advisory Services includes more than 15,000 people in 120 countries and helps businesses manage their people and workforce transformation needs.

“Tao’s market-leading tools provide behavioral analytics, wide-ranging insights and data-rich visualizations to power even the most complex change programs,” said Tao founder and director of adventure Haider Imam in a statement. “Combining technology, social science research and coaching is an incredibly effective methodology, and the Tao platform identifies key organizational influencers to help drive change organically, from the ground up. Tao’s approach is focused on accelerating outcomes and engineered to provide tangible business value and return on investment while putting people at the center of the change journey.”

Details: WithumSmith+Brown, a Top 25 Firm based in Princeton, New Jersey, joined practices with Glick & Associates, a firm headquartered in San Francisco, effective Nov. 15, 2022.

As part of the deal, Glick & Associates managing partner Jeffrey Glick will join Withum, along with six other team members. They will relocate to Withum’s existing offices in San Francisco.

Financial terms of the deal were not disclosed. Withum ranked No. 24 on Accounting Today’s 2021 list of the Top 100 Firms. Withum has annual revenue of $330 million, 15 offices, more than 135 partners and over 1,400 employees.

“We are very enthusiastic about joining forces with Withum and believe this union will take us to the next level in client service and career opportunities for Glick & Associates team members,” Glick said in a statement last week. “Both firms share the same commitment to the highest level of integrity, as well as a nimble, flexible and innovative culture that emphasizes problem-solving. These factors were instrumental in our decision to unite.”

His firm specializes in offering tax services to high-net-worth clients, as well as the professional services and technology sectors, and executive compensation tax consulting.

“Not only does this strategic partnership enhance our presence in the San Francisco Bay Area, which is home to a robust high-tech community, but just as important, this union is a terrific culture fit as both firms have similar core values that put our people first, which in turn produces natural synergies that will benefit our clients through our industry expertise and innovative solutions,” said Chris DeMayo, practice leader for technology and emerging growth services at Withum, in a statement.

This month, Withum also combined with another firm, Restivo Monacelli in Providence, Rhode Island. Last month, 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. Last year, the firm expanded to California by merging in KSJG, a firm in Irvine.

Details: Colorado-based CPA firms, Erickson, Brown & Kloster and Osborne, Parsons & Rosacker announced plans Friday to merge together under EB&K’s name in 2022.

The combined firm will have 47 employees and more than 3,000 clients. EB&K currently has 28 staff members and four partners, while OPR has 13 staffers and two partners. Financial terms of the deal were not disclosed. The firms plan to continue operating at their original locations with different team members rotating between the two offices in Colorado Springs.

"We’re thrilled to come together and offer our staff and clients more opportunities, expanded expertise, and additional support that will only build upon and improve the culture and experiences we’ve been known to provide for nearly 40 years,” said EB&K managing partner Philip Erickson in a statement. “We’re dedicated to our 47 combined team members and more than 3,000 clients in the area. We also look forward to hiring additional talented individuals that share our passion for providing outstanding client service to our community.”

EB&K specializes in tax planning, succession planning, estate planning, auditing and benefit plan administration. It targets industries such as automotive dealerships, professional service firms, nonprofit organizations, governmental entities, real estate, construction, medical and dental practices, wholesale distribution and manufacturing.

OPR offers tax planning and preparation services, business services such as payroll and part-time CFO services, and technology services such as QuickBooks consulting. “Since 1955, OPR has been providing a full range of cost-effective accounting and business consultation services,” said OPR managing partner Jeffrey Rosacker in a statement. “We are excited to combine the strengths of our firms so that we can provide the highest level of service and quality work that both firms have offered the community for decades. EB&K shares our desire to exceed expectations and is committed to the success of our clients, our team and our community.”