BerganKDV, a Top 100 Firm based in St. Cloud, Minnesota, has added Alliance Management, a business turnaround firm based in Minneapolis.

BerganKDV offices
Courtesy of BerganKDV

The merger takes effect immediately, and Alliance Management is being rebranded as “Alliance Management, A BerganKDV Company.”

Financial terms of the deal were not disclosed. Alliance earns around $4 million in annual revenue, while BerganKDV earns approximately $60 million. BerganKDV ranked 83rd on Accounting Today’s 2018 list of the Top 100 Firms.

Alliance Management’s 10-member team will continue to be based in their current offices in Minneapolis and Denver, bringing BerganKDV’s current headcount to 359 employees. Alliance Management will be adding three partners to BerganKDV, which already has 46 partners.

Alliance Management specializes in turnaround management, evaluating and revitalizing distressed companies to help them return to profitability. For its part, Alliance Management will get access to BerganKDV’s assurance, accounting, technology, wealth management, valuation, due diligence support and forensic accounting services.

“They’re primarily in turnaround management with businesses experiencing financial difficulty,” BerganKDV president and CEO Loren Viere told Accounting Today. “They also get involved in receiverships, sometimes court appointed. They have some accounting services, doing things like cash-flow projections.”

With the addition of Alliance Management, BerganKDV plans to help financially distressed companies with services such as forensic accounting when there’s a possibility of fraud. Alliance Management’s turnaround can also be beneficial to BerganKDV’s clients.

“We think there’s an overlap,” said Viere. “From time to time we have clients who experience downturns and we would like to help them turn things around.”

Alliance Management sees advantages in the combination. “We are both broadening our service offering,” said Alliance Management president Michael Knight in a statement. “In my conversations with Loren, it became apparent that our organizations shared a common goal of putting clients’ needs first and building unwavering relationships with those we serve. This merger will be mutually beneficial to all involved.”

Last year, BerganKDV acquired Beltz, Kes, Darling & Associates, a firm in Farmington, Minnesota. In 2016, the firm acquired Carlson Hartsock & Guither in Iowa City. BerganKDV itself came out of the merger of Bergan Paulsen, Networking Solutions and KDV in 2015.

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Michael Cohn

Michael Cohn

Michael Cohn, editor-in-chief of AccountingToday.com, has been covering business and technology for a variety of publications since 1985.