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
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.