Nov 18th 2013
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By Jason Bramwell
McGladrey LLP, a top US provider of assurance, tax, and consulting services focused on the middle market, signed an agreement November 6 to acquire substantially all assets of Houston-based CPA firm Margolis Phipps & Wright, PC (MP&W). The transaction is expected to close on December 2.
MP&W specializes in the fields of taxation and personal and financial consulting.
"We are proud to join McGladrey to establish its Houston office," Barry Margolis, MP&W executive committee member, said in a written statement. "McGladrey's focus on the middle market and approach to client service is very similar to ours. We look forward to providing the same high-quality service our clients have come to expect from MP&W's teams while also offering expanded services, capabilities, and expertise as part of McGladrey."
All fourteen of MP&W's leaders will join McGladrey as partners, and its more than one hundred employees in Houston will receive offers to join McGladrey. MP&W executive committee members Margolis, Jan Phipps, and Tommy Wright will serve as McGladrey's management team in Houston. McGladrey also has an office in Dallas with thirteen partners and more than 150 professionals.
In a letter dated November 4 that was sent to its clients, MP&W wrote the firm had been investigating opportunities for securing its long-term future for the betterment of its clients and employees.
"Likewise, McGladrey has been searching for the right opportunity to establish a presence in the vibrant Houston market," the letter stated. "MP&W and McGladrey have a similar focus on serving multigenerational and high-net-worth families, executives, entrepreneurial companies and individuals, real estate, private equity firms, and others. Both firms share a commitment to quality, exceptional client service, and strong relationships. After a long courtship, we determined that McGladrey would be a good fit for us and for you. We intend to build a full-service office in Houston as part of McGladrey."
With more than 6,700 employees in seventy-five cities nationwide, McGladrey is a licensed CPA firm that serves clients around the world through RSM International, a global network of independent assurance, tax, and consulting firms.
"Houston is a hub for dynamic middle market companies, and McGladrey has been looking to enter this market for some time," McGladrey Managing Partner and CEO Joe Adams said in a written statement. "We look forward to having the MP&W team members join McGladrey. Their stellar local reputation and great clients provide a strong foundation from which to build a full-service office in Houston. In addition, MP&W's tremendous talent in serving high-net-worth families and closely held businesses will complement McGladrey's national service offerings for middle market companies."
In its letter, MP&W wrote that its clients will continue to work with the same partners and team members that they know and trust.
"We will remain in the same offices and continue to work with you as we do today," the letter stated. "We also will maintain the same fee structure for our services. In addition, we are pleased to now be able to offer expanded services to those who have requested more from us."