Accounting Firm Growth Spurned by Acquisitions, Global Expansion and New Services
For Southern California's many accounting firms, acquisitions have been a means of expansion as the industry consolidates to streamline operations and enhanced technology. Over the past year, a flurry of acquisitions has also been supplemented by new offerings, such as legal services and global expansion with employees in foreign countries that provide services to support U.S. operations.
One of the largest mergers of the past year was CBIZ's $2.3-billion acquisition of Marcum LLP, which closed on November 1. The combined firm is expected to have combined annualized revenue of approximately $2.8 billion.
Smaller firms have also been the targets of acquisition as aging partners seek exit plans and firms utilize artificial intelligence and offshore resources to optimize operations. It's a trend that mirrors the wider business climate, according to Aldrich CPAs + Advisors. The firm conducted a survey of more than 100 owners and executives at private companies in California, Oregon and Washington and found that 61% received at least one unsolicited offer to be purchased within the past 12 months, and nearly a quarter of those surveyed received three or more unsolicited offers.
Competition to acquire accounting firms has been fierce, but local firms have been able to execute mergers despite interest from national firms. In October, GHJ Accounting, Tax and Advisory Firm acquired Los Angeles-based GGF, which provides audit, tax and consulting services to entrepreneurial businesses and individuals.
'We are proud to integrate GGF into the GHJ family to strengthen our ability to deliver exceptional value to our clients. Their strong client relationships and tailored approach make them a perfect strategic fit for our firm,' said Tom Barry, GHJ managing partner, in a statement.
Firms are also expanding by adding new services beyond traditional audit and tax advisory. Two firms quickly took advantage of an Arizona Supreme Court ruling in 2021 that allowed nonlawyers to have an economic interest in law firms under the state's Alternative Business Structure program. The Arizona Supreme Court granted a special license to Big Four firm KPMG to operate a law firm in February. In addition to KPMG, Aprio acquired Radix Law, a Scottsdale-based firm, and launched Aprio Legal in February under the alternative business structure.
However, a state law proposed in California may limit the impact of the Arizona ruling. Assembly Bill 931 would prohibit California attorneys from sharing legal fees with out-of-state firms operating under alternative business structures such as those that exist in Arizona and Utah, where non-lawyers, including private equity firms and corporations, may invest in or own law firms.
Aprio's addition of a law firm complements its nationwide acquisition spree that included Woodland Hills firm Kirsch Kohn & Bridge in November. The Kirsch Kohn & Bridge acquisition added five partners and more than 30 local professionals. Nationally, it has expanded its footprint with firms in Atlanta, Austin, Baltimore, Denver and Chicago. Plus, it added cybersecurity firm Securitybricks.
Firms have also expanded their reach globally by opening new offices worldwide to support operations. For example, Weaver credited its West Coast growth partly due to long-term progress reflected by the firm's global footprint and official expansion into India. It opened four new offices since the beginning of 2025 in India: Kochi, Coimbatore and Bengaluru opened in January, while Weaver's Chennai office opened in March.
At Long Beach-based Windes, local tax partner Guy Nicio, who serves on the firm's board of directors, leads its growing Philippines team, which provides employee support and client services. HCVT continued to invest in its Armenia operations, reinforcing a commitment to build infrastructure that supports future growth.
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