The acquisition of American Express Tax and Business Services (TBS) announced on August 1 by parent-company H&R Block, is now complete according to a statement from RSM McGladrey. The acquisition increases RSM McGladrey's staff by 2,500 and when considered with McGladrey & Pullen LLP, creates the fifth largest accounting firm in the nation with combined revenues of more than $1 billion.
The Kansas City Business Journal reports that the final acquisition price was $191.4 million, slightly lower than the original $200 million estimate. The acquisition closed last Friday.
âIt's not all that unusual for a price to be announced at one thing and changed because of balance-sheet adjustments,â Deborah Ely Lawrence, RSM McGladrey spokes person told the Business Journal.
The combined firm is the largest U.S. accounting, tax and business services organization focused primarily on the needs of mid-sized businesses according to the RSM McGladrey statement.
âMidsized business owners will now have a national organization dedicated to their political needs,â says Steve Tait, RSM McGladrey Business Services president. âWith additional talented professionals located in more U.S. markets, providing expanded services, RSM McGladrey is prepared to meet the fast-changing needs of midsized companies and their owners.â
The acquisition of TBS comes as RSM McGladrey continues to experience profitable growth, posting a 16 percent growth in revenues. It is the eighth consecutive quarter of double-digit growth year over year.
âThe middle market represents the most dynamic sector of the American economy,â Tait added. âRSM McGladrey is uniquely positioned to meet their accounting, tax and business consulting needs. Our expertise in the manufacturing, wholesale, distribution, financial service, healthcare, construction/real estate and public sector industries can help our clients grow and prosper.â
In addition to the RSM McGladrey acquisition, eight TBS offices, which primarily prepare tax returns for individuals and small businesses, have transferred to H&R Block Small Business Resources and H&R Block Specialty Tax Services where they are a better fit. RSM McGladrey Business Services is a wholly owned indirect subsidiary of H&R Block.