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Bloomington, Minn. (Aug. 16, 2002) -- RSM McGladrey, the accounting industry consolidation arm of H&R Block, is slowing its acquisition engine to devote more energy to integrating the operations it already has."I am now focusing on integrating what we have acquired and activity in that area," said James Clarahan, managing director of mergers and integration at RSM, which has grown into accounting's seventh largest firm almost exclusively through acquisitions. He said RSM will still make business acquisitions, but will not enter new geographic market areas.
"The acquisitions we make will be ones that make sense in markets where we have an existing presence and where we want to build our market share and dominance," Clarahan added. But he denied reports from anonymous sources, who said H&R Block has directed RSM to eliminate all acquisition activity because of regulatory pressures on the industry in the wake of the Andersen audit scandals. A Block spokesperson declined comment.
"Rumors are going to be rumors, but we are still looking at acquisitions and we have deals in the pipeline," Clarahan said. However, he added, "There is increased uncertainty around the industry."
John M. Covaleski
