Two Top 100 Firms, Moss Adams LLP and Hein & Associates LLP, have signed a letter of intent to combine forces, effective Nov. 1, 2017, in one of the biggest accounting firm M&A deals so far this year.
Moss Adams, based in Seattle, would expand its geographic footprint by adding Hein’s offices in Denver and Houston, along with augmenting its presence in Denver and Orange County. Moss Adams will also gain Hein’s oil and gas practice to complement its existing industry practices from the deal.
“We’re thrilled to combine with Hein & Associates and solidify our presence in key Western markets,” said Moss Adams chairman and CEO Chris Schmidt in a statement Thursday. “This is a unique opportunity to bring together two successful, like-minded firms to become the clear middle-market leader in the Western United States.”
Financial details of the deal were not disclosed, and the firms still plan to conduct due diligence before the deal closes in November. Moss Adams had annual revenue of $527 million and ranked 13th on Accounting Today’s 2017 list of the Top 100 Firms. Hein’s annual revenue was $61 million, and the Denver-based firm ranked 67th on the Top 100 list. The firms expect their combined revenues to reach nearly $600 million. The merger will add approximately 300 new people to Moss Adams, including 35 partners, bringing Moss Adams’ total headcount to nearly 2,900 people in 26 locations.
“This combination presents us with an opportunity to diversify our capabilities and gain access to deeper resources that will help us to better serve our clients,” said Hein managing partner Jim Brendel in a statement. “It became clear as we learned more about Moss Adams that there’s also a strong cultural fit, which was a critical factor in our decision.”
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