Canadian accounting firms Horwath Orenstein and Meyers Norris Penny have merged, allowing MNP to expand eastward to Toronto.
The combined firms will operate under MNP's name, effective July 1. Up to now, MNP has operated from 46 offices in the western part of the country, including Vancouver, Calgary and Winnipeg.
"Over the last 20 years, we've grown into a large full-service firm in Western Canada and we've decided it's time to go national," said MNP CEO Daryl Ritchie. "Toronto was the logical place to launch an eastern expansion." MNP looked at various firms and decided that Horwath Orenstein fit in best with its culture.
The combined firm is expected to generate over $250 million in revenue this year. Horwath will contribute about $15 million of that total. MNP had revenues of over $210 million last year. (Canadian and U.S. dollars are roughly equivalent at current exchange rates.)
"We've been in a growth environment," said Horwath CEO Paul Dunnett. "Our firm has been growing at a rate of 15 percent per year and moving mid-market with our service offerings."
He expects the combination with MNP will allow his firm to increase the depth of its services in areas such as corporate finance, due diligence, and private equity audits.
Allan Koltin, president and chief executive of Chicago consultancy PDI Global, recalled meeting with the MNP leaders at a retreat in January in which they discussed their expansion plans. "In Canada the place to expand east is Toronto," he said. "They picked one of the most respected firms in the market." One challenge for the merged firm, however, will be deciding which accounting network to remain in, as MNP is a member of Baker Tilly International, whereas Horwath is associated with the Crowe Group. "That will be the big thing that the market will be watching," said Koltin.
