M&A roundup: A flood of different deals

October 2, 2023 3:27 PM

Top 50 Firm Sikich acquired Four Leaf; Top 100 Firm Brady Martz merged in Woltman Group; Opsahl Dawson added StraderHallett and Futcher Group; Coldstream Wealth Management merged in Seidman Capital Group and Hersman Serles Almond; Top 75 Firm Bennett Thrasher acquired Intrinsic's tax reporting valuation practice; and Ryan acquired Avalara's sales and use tax recovery services and audit defense business line.

Sikich acquires Four Leaf

Photo: Matt Stout

Sikich LLP, a Top 50 Firm based in Chicago, has acquired Four Leaf LLC, a technology services company in Sacramento, California, that develops applications for state and local government entities and their constituents, effective Sept. 30.

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 in 2022, 132 partners and more than 1,660 employees. Fifteen employees and one partner will be joining Sikich from Four Leaf as Sikich continues to pursue adding capabilities that will aid its government clients.

"County and local government sectors, particularly emergency services managers and crews working to save lives, need faster progress in their digital transformation journey, and we now are solidifying our position in this vital area," said Mike Kean, partner-in-charge of Sikich's technology team, in a statement Monday. "The addition of Four Leaf is another key step toward expanding our offering in the government space and broadening our capabilities in helping clients succeed as they confront constantly changing technology needs."

Four Leaf specializes in systems integration for state and local governments and implements Salesforce, Tableau, MuleSoft and other programs.

"We anticipate strong synergy in teaming with Sikich and leveraging the firm's vast talent pool, broad range of offerings, and national reach for all levels of government," said Four Leaf CEO Eric Scully, who will join Sikich as a partner. "Government entities such as state and local emergency management agencies are finding themselves at a crossroads in the face of unprecedented natural disasters."

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.

Brady Martz merges in Woltman Group

Brady Martz & Associates, a Top 100 Firm based in Grand Forks, North Dakota, has expanded into South Dakota by adding Woltman Group PLLC, effective Oct. 1.

Woltman Group has been offering accounting, tax and advisory services to businesses and individuals since 1988 and has offices in Sioux Falls and Marion, South Dakota that will now operate under the Brady Martz name. Brady Martz was founded in 1927 and now has nine offices throughout North Dakota, Minnesota, and South Dakota. The firm offers advisory, audit. assurance and tax services to clients in various industries.

Financial terms of the deal were not disclosed. Brady Martz ranked No. 97 on Accounting Today's 2023 list of the Top 100 Firms, with $52.73 million in annual revenue, approximately 45 partners and over 250 employees.

"We are thrilled to announce our successful merger with Woltman Group," said Brady Martz CEO Todd Van Dusen in a statement Monday. "This strategic move represents a significant milestone in our firm's growth journey, allowing us to expand our capabilities, reach and impact in the industry. Together, we are poised to create even greater value for our team, clients and communities, and we look forward to the exciting opportunities this partnership will bring."

Opsahl Dawson adds StraderHallett and Futcher Group

Opsahl Dawson & Co. Advisors LLC, a firm based in Vancouver, Washington, acquired StraderHallett PS of Lacey, Washington, in August, and Futcher Group of Kelso, Washington, in September.

The transactions are ODC's fifth and sixth acquisitions since 2015. Financial terms were not disclosed. Combined post-transaction revenues for ODC this year are estimated to be $24 million. The two deals add two new locations and 33 people to ODC, expanding the firm's total headcount to 125. StraderHallet managing partner Phillip Hall and Futcher Group managing partner David Futcher both became principals at ODC.

The two acquisitions come after the private-equity firm Alpine Investors launched Ascend, a new platform to partner with entrepreneurs; its first investment was in the nonattest business of Opsahl Dawson in January (see story).

"These transactions were three to four times larger than any of our previous acquisitions. It would have been a really big stretch for us before, but we had the confidence and courage to go for it now because it was a great fit with the plan we developed under the Ascend growth model," said Opsahl Dawson CEO Aaron Dawson in a statement Monday. "We are on a path to build the best firm serving small businesses in the Pacific Northwest. We are so energized by the people, culture, and intelligence that Ascend brings to our firm. This is exactly the infusion we needed to prepare for the future."

In addition to Opsahl Dawson, Ascend previously invested in the non-attest businesses of ATKG of San Antonio in May, and LMC of New York City in June. In July, Ascend acquired Sentient Solutions for Accounting, an offshore accounting services and technology solutions provider with offices in India and Mexico.

Coldstream merges in Seidman Capital Group and Hersman Serles Almond

Victoria Serles

Coldstream Wealth Management, a financial firm headquartered in Seattle, has merged in Hersman Serles Almond, an accounting and consulting firm based in Kirkland, and Seidman Capital Group, a wealth management firm that's also based in Kirkland.

SCG and HSA are two affiliated businesses co-founded by Victoria Serles, a CPA who is HSA's managing partner and a partner at SCG.

HSA has long worked with Coldstream, referring mutual clients to the other firm. HSA has provided clients with income tax services since 1980, along with trust and estate planning for high-net-worth households and succession planning and valuations for businesses. SCG, which has $250 million in assets under management, was founded in 2004 and provides financial, investment and insurance planning services.

"Merging with Coldstream comes at the ideal phase of our respective businesses," Serles said in a statement Monday. "The firm understands how we operate, the value-add that sophisticated tax services can bring to wealth management clients and how a truly comprehensive financial services company can stand out as a destination of choice for top talent who continually seek new challenges in order to grow throughout their careers.

HSA has 17 financial professionals, including six partners.

"Vicki's superb track record of founding and then continually evolving wealth management and accounting businesses was one of many clear signs that SCG and HSA would be a great fit for Coldstream," said Kevin Fitzwilson, Coldstream's managing shareholder, in a statement. "I am thrilled that our firm cultures are in such strong alignment, and that our business models complement each other so well. Combining our firms brings us one step closer to our vision of creating a world class, independent firm of the future; one that provides multiple career path choice for our employees, and broader in-house resources for tax, trust, estate and retirement plan capabilities."

Bennett Thrasher acquires tax reporting valuation practice

Bennett Thrasher team on a hike in 2019

Bennett Thrasher, a Top 75 Firm based in Atlanta, has acquired the tax reporting valuation practice of Intrinsic LLC, a Denver-based transaction advisory and valuation firm.

The deal positions the firm to expand in the Rocky Mountain region and nationwide.

"Bennett Thrasher is on a mission to redefine excellence in the accounting and advisory services world," said Bennett Thrasher managing partner Jeff Call in a statement last month. "With the addition of Intrinsic's exceptional team, we are not just expanding — we're continuing to emphasize innovation and client-centered excellence."

Intrinsic managing director Chris Anderson will join Bennett Thrasher as a partner. He and his team specialize in valuation for tax reporting.

"We eagerly anticipate our team's future with Bennett Thrasher," Anderson said in a statement. "Its growth mindset and shared commitment to providing exceptional service make this pairing an ideal match."

Financial terms of the deal were not disclosed. Bennett Thrasher ranked No. 66 on Accounting Today's 2023 list of the Top 100 Firms, with $87.72 million in annual revenue, approximately 46 partners and over 400 employees.

In 2016, Bennett Thrasher merged in Graves Technology, a technology consultancy also based in Atlanta.

Ryan acquires Avalara’s business line

G. Brint Ryan, chairman and CEO of Ryan

Photo: Shannon Faulk

Ryan, a Dallas-based global tax services and software provider, has acquired the sales and use tax recovery services and audit defense business line of Avalara, a Seattle-based provider of tax compliance automation software for businesses of all sizes.

The sales and use tax recovery and audit defense business line mainly serves enterprise businesses, including Fortune 500 companies, and their internal tax teams. As part of the deal, a tax services team from Avalara will join Ryan's transaction tax practice. Financial terms of the deal were not disclosed.

"We are excited to welcome our new team members and clients from Avalara's tax recovery business to Ryan," said Ryan chairman and CEO G. Brint Ryan in a statement last month. "We look forward to working closely with the transitioning clients to understand their needs and expand their tax-saving strategies through Ryan's full suite of tax services and automation solutions."

This acquisition follows additional strategic acquisitions made by Ryan this year, including MJI Consulting Group, a property tax advisory group; Indigo Consulting Group, a leading research and development tax relief firm; and RETC Group, a property tax consulting firm. Ryan ranked No. 8 on Accounting Today's 2023 list of the Top Tax Firms, with $820.08 million in annual revenue.