CBIZ buys McKay
CBIZ has acquired the non-attest business of McKay & Carnahan, Inc., a firm based in Newport Beach, Calif., effective Dec. 1, 2017, while CBIZ’s affiliated CPA firm, Mayer Hoffman McCann P.C., has acquired McKay’s attest business.
CBIZ and Mayer Hoffman McCann operate an alternative practice structure because CBIZ is a public traded company that legally operates separately from MHM.
McKay dates back to 1981 when it was founded by Verlon McKay. It mainly offers tax compliance and consulting services to small and midsized clients in and around Orange County, Calif. The firm has 14 associates and three partners and had approximately $2.5 million in revenue over the past year. It will be integrated into CBIZ’s existing Irvine office. Since CBIZ doesn't have a partnership structure, the partners will become a managing director and directors. Financial terms were not disclosed.
“We are very excited to join CBIZ and look forward to providing our clients with the additional resources and expertise of a national company while also offering our talented pool of professional and administrative personnel the opportunity for an outstanding career path going forward,” said Verlon McKay in a statement. “McKay & Carnahan has a very loyal and long-standing client base and, while our name will change, we remain committed to providing the exceptional personal and professional services they've come to expect from us over the past 36 years.”
CBIZ, based in Cleveland, and MHM ranked 10th on Accounting Today’s 2017 list of the Top 100 Firms, with $661 million in annual revenue. Together they have more than 400 partners and 3,000 staff across the company.
“The addition of McKay & Carnahan will strengthen our current market presence and provide added depth and expertise in our Southern California market,” stated CBIZ president and CEO Jerry Grisko. “The quality practice that Verlon and his team have grown complements our current operations, and we look forward to working with them to better serve clients and grow our business together.”