Reznick Group said it has signed a letter of intent to acquire another accounting firm, Tidwell DeWitt, building its presence in the Southeast and adding more services.
The move will expand Reznick's Atlanta office and establish a new office in Birmingham, Ala., for the Bethesda, Md.-based firm. The transaction is expected to close by Oct. 1. Approximately 50 Tidwell DeWitt employees, including seven principals, will be joining Reznick Group, according to Ken Baggett, managing principal with Reznick. Tidwell DeWitt had annual revenue of $13.7 million in fiscal 2006, while Reznick Group had annual revenue of $188 million in fiscal 2007.
Reznick sees the Birmingham expansion as a natural fit because of the city's proximity to Atlanta. "We have a large office in Atlanta, and establishing the Birmingham office is an opportunity to expand our presence in the Southeast," said Michael Tebo, Reznick's national leader of external communications.
Reznick specializes in affordable housing and real estate clients. The firm will be able to build several services and client areas with the acquisition. Tidwell has expertise in SAS 70 audits of service organizations and specializes in Regulation AB audits of asset-backed securities.
The acquisition will also bring Tidwell's many clients in the trucking industry to Reznick, as well as clients in the manufacturing, construction, government and mortgage-banking sectors.
