Merger puts Mar­cum in the lead in Q3

The firm’s July com­bi­na­tion with Texas-based GBH CPAS brought 21 new SEC clients on board

Accounting Today - - Assurance - By Daniel Hood

A merger in July with a Texas-based CPA firm helped sky­rocket Top 100 Firm Mar­cum to a com­mand­ing lead in terms of new SEC au­dit client en­gage­ments in the third quar­ter of 2018.

“The third quar­ter was another strong per­for­mance pe­riod for Mar­cum’s SEC group,” said David Bukzin, na­tional leader of Mar­cum’s SEC ser­vice prac­tice, in a state­ment. “The sig­nif­i­cant in­crease was a con­tin­u­a­tion of on­go­ing or­ganic growth, bol­stered by the in­te­gra­tion of GBH CPAS in Houston, which had a strong SEC au­dit spe­cialty.”

Bukzin noted that the third quar­ter was also a par­tic­u­larly ac­tive time for IPO ac­tiv­ity, and that Mar­cum’s seven IPO en­gage­ments ac­counted for 11 per­cent of the 65 to­tal of­fer­ings in the pe­riod.

The firm brought a to­tal of 30 new clients on board — more than four times as many as its near­est ri­val among large firms — and 21 of those were for­mer GBH clients. ( See “Client Gains & Losses,” be­low.)

Mar­cum net­ted 22 new clients for the pe­riod, twice the num­ber of its near­est ri­val, Lake­wood, Colorado-based BF Borg­ers, which brought on 11 new SEC au­dit clients, and net­ted the same. ( See “Net En­gage­ment Lead­ers” on page 25.)

The same two firms topped the lists of new en­gage­ments with smaller re­port­ing com­pa­nies, while Deloitte & Touche led among large ac­cel­er­ated fil­ers and ac­cel­er­ated fil­ers, and KPMG took the lead among non-ac­cel­er­ated fil­ers. ( See “Au­dit Lead­ers,” be­low.)

While Mar­cum had the lead in num­ber of new en­gage­ments, Big Four firms Deloitte and KPMG dom­i­nated the rank­ings in terms of new mar­ket cap­i­tal­iza­tion au­dited, new as­sets au­dited, and new au­dit fees — in each case, thanks to a sin­gle client. ( See “New Client Lead­ers,” on page 25.)

For Deloitte, it was in­dus­trial gas man­u­fac­turer Air Prod­ucts & Chem­i­cals, with $35 bil­lion in mar­ket cap, $19.2 bil­lion in as­sets, and $6.7 mil­lion in fees.

For KPMG, it was Bri­tish Tele­com, which brought $68 bil­lion in as­sets, $24.8 bil­lion in mar­ket cap, and $14.9 mil­lion in fees.

AT

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