M&A roundup: Grassi and DMLO expand

Details: Grassi & Co., a Top 100 Firm based in New York, is acquiring Levine, Caufield, Martin & Goldberg PC, a firm in Needham, Massachusetts, expanding Grassi’s footprint into the Boston metropolitan area, effective Oct. 1.

As part of the deal, LCMG partners Bruce Levine, Sherri Martin and S. Bernard Goldberg and principal Thomas Kreckler have joined Grassi's leadership team. Along with 16 staff members, they will continue to serve clients from their current office in Needham. Grassi has 321 team members, including 35 partners.

“Joining forces with a firm like Grassi was integral to providing our clients with the depth of resources and expertise they need to meet the increasing demands of operating a business or growing their wealth in a large metropolitan area,” Levine said in a statement Thursday. He is LCMG's president and will maintain his leadership role over the Needham office as a Grassi partner. “As we continue to serve our Boston-area clients, the addition of Grassi's comprehensive service offerings, diverse talent pool and global reach will help us elevate the level of service we can provide and the professional opportunities available to our people,” he added.

Financial terms of the deal were not disclosed. Grassi ranked No. 67 onAccounting Today’s 2020 list of the Top 100 Firms, with annual revenue in 2019 was $73.95 million.

“After nearly 40 years of growth in the New York metropolitan area, Grassi is well-positioned to bring our innovative, industry-leading solutions to the businesses and people of Boston,” said managing partner Louis Grassi in a statement. “While our client base has always spanned the country, nothing can compare to the impact we are able to have in communities when we are serving them in their own backyard.”

The Needham office is one of six Grassi locations, which also include offices in New York, Jericho, Ronkonkoma and White Plains, New York, and Park Ridge, New Jersey. Along with expanding the firm's geographic footprint, the acquisition increases Grassi's services in various market sectors that LCMG has also served.

“LCMG has a strong history of advising many of the same key industries Grassi serves, including health care, manufacturing, real estate, nonprofit and professional services,” the firm said in an email to clients. “These similarities extend into our service approach, core values, culture and commitment to providing value-added advice and strategic direction to every client.”

Grassi has not been active on the M&A front lately, but in early 2017 it did a pair of mergers with Bernstein and Seidman, a firm in Scarsdale, New York, and with James Bohl, CPA, P.C., a Long Island firm in Ronkokoma, N.Y.

Details: Deming, Malone, Livesay & Ostroff, a firm based in Louisville, Kentucky, and Rodefer Moss of Southern Indiana are merging, effective Oct. 1.

The deal is expected to lead to more opportunities for the combined firm on both sides of the Ohio River and will encompass approximately 150 employees, 60 of whom are CPAs. There will be 22 directors (essentially partners) at the combined firm.

Rodefer managing partner Doug York said no offices would be closing, and no jobs would be eliminated. “In fact, we are looking for additional talent that would like to be part of a fun, flexible environment, doing meaningful work that makes a difference for their communities,” he said in a statement.

The merged firm will retain the name of DMLO and have three office locations in Corydon, Louisville and New Albany. The Louisville, New Albany and Corydon offices of Rodefer are all part of a separate entity, Rodefer Moss & Co. of Indiana LLC. The Tennessee and Virginia offices of RM are not part of the deal, but the EPayroll Resource Group is part of the merger. It will continue to have separate branding and is one of the largest payroll processors in the region.

“The two firms have always been friendly competitors and share a passion for providing the highest-quality service to their clients,” said DMLO president Chris Ward in a statement. “Our focus together is on being the best accounting firm in Kentuckiana in ways that truly matter. Our purpose and value — to clients and to our community — extends beyond reporting financial results or calculating tax liabilities, and we will live that out daily.”

Last year, Rodefer Moss combined with two firms, Fortner Smalley and Thrower, Blanton & Associates, expanding its footprint in the Tennessee and Virginia area.