M&A roundup: Sikich and HBK expand

Sikich LLP, a Top 50 Firm based in Chicago, is acquiring the operating assets of Thornhill Financial LLC, a Cleveland-based accounting firm that provides tax, audit and financial advisory services, effective Nov. 30.  

The deal expands Sikich's presence in Northeast Ohio, where it hopes to grow further. 

"Northeast Ohio is a priority market for Sikich and I'm excited to continue our investment in this geography with the addition of the Thornhill Financial team," said Jason Tuma, Northeast Ohio market expansion leader at Sikich, in a statement Thursday. "We're proud of our reputation as one of the top professional services firms in the country. The Thornhill team will build upon our capabilities and allow us to continue to bring first-class services and financial strategies to our clients." 

Financial terms of the deal were not disclosed. Sikich ranked No. 27 on Accounting Today's 2023 list of the Top 100 Firms, with $316.4 million in annual revenue and 1,700 employees, including 133 partners. A total of 25 employees are joining Sikich from Thornhill, including one partner.

Thornhill Financial offers individual and business tax planning and compliance, employee benefit plan audits, restructuring, cash flow planning, estate planning and other services. The firm specializes in supporting high-net-worth clients and in business clients in sectors such as manufacturing, construction and private equity.

"Sikich's range of services and resources will bring immeasurable value to both our clients and our employees," said Thornhill Financial partner Kurt Walcutt in a statement. "Our priority has always been to put our people first and bring unparalleled expertise and top-notch service to our clients. We see a similar commitment to success in Sikich and are excited to join the firm."  

Thornhill Financial plans to maintain its office in Strongsville, Ohio, in the Cleveland-Akron metro area, supplemented by some current Sikich employees.

Last month, Sikich acquired Four Leaf, a technology services company in Sacramento, California, that develops applications for state and local government entities and their constituents. Last December, Sikich acquired Vonya Global LLC, a consulting firm in Chicago. Last November, it acquired two other Chicago firms: O'Malley & Kwit, which specializes in taxes, and Accelerated Growth, an accounting, finance and technology consulting firm. In February 2022, it acquired Cotton & Co., an accounting firm in Virginia that specializes in government clients.

HBK CPAs & Consultants, a Top 50 Firm based in Canfield, Ohio, is expanding its footprint in the Mid-Atlantic region by merger with Zapken & Loeb LLP, a firm in Woodbury, New York, effective Nov. 1. 

The 70-person CPA firm offers accounting and business consulting services to business owners, executives and independent professionals. Like HBK, Zapken & Loeb professionals focus on several industries, including construction, manufacturing and health care.

As part of the transition, Tanvi Shah, Alex Charitos, Nachu Vellayappan, Kieron Ludde and Scott Anderson have joined HBK as principals. Howard Zapken, Jeff Isaacson and Steve Bandini will join the firm as senior directors.

"Howard Zapken, Stanley Loeb and their team of talented professionals have been delivering high-quality accounting and business consulting for more than three decades," said HBK managing principal and CEO Christopher Allegretti in a statement Thursday. "This merger is the largest in our firm's long history and not only extends our presence in our Mid-Atlantic region, but adds to our deep expertise in a wide range of accounting disciplines and industries."

Financial terms of the deal were not disclosed. HBK, short for Hill Barth & King, ranked No. 45 on Accounting Today's 2023 list of the Top 100 Firms. The firm earned annual revenue of $150 million and has 70 partners and 630 staff members. Zapken & Loeb has five partners and 50 staff.

"We are pleased to join HBK to ensure the next stage in the growth of our business," noted Zapken & Loeb founder and managing partner Howard Zapken. "HBK will offer our clients additional services that a firm with such a national reach can obtain."

Whitman Transition Advisors CEO Phil Whitman advised both firms on the transaction. "HBK has a track record of being a dominant player in secondary markets," he said in a statement. "The merger of Zapken & Loeb brings HBK five young principals who are poised to bring the firm significant growth and expansion opportunities on Long Island."

In 2021, HBK merged in Vertical Solutions, a Pittsburgh-based managed service provider.