BDO USA LLP said Wednesday it plans to acquire Owings Mills-based Hertzbach & Co. P.A., continuing the national accounting firm’s expansion in Greater Baltimore.
Hertzbach, one of the five largest accounting firms in the area with 135 employees, has been a local fixture for 72 years since being founded by George Hertzbach in 1948. For Chicago-based BDO, the combination continues the accounting giant’s expansion in the mid-Atlantic region.
BDO will maintain Hertzbach’s Owings Mills office. Hertzbach’s Arlington, Virginia, office has been integrated into BDO’s McLean, Virginia, office and the Rockville office will be integrated into BDO’s Potomac office.
BDO entered the Greater Baltimore market in January with the acquisition of Biegel Waller Investment and Tax Advisory Services in Columbia. BDO CEO Wayne Berson said at the time the firm was just getting started and hinted that more deals were on the way.
The combination of BDO and Hertzbach is subject to certain closing conditions and expected to be completed Nov. 16.
“This combination brings a touch of the largest locally owned firm in the area with BDO, the largest firm in the world,” Berson said. “It creates tremendous growth opportunities for BDO’s clients, partners and professionals.”
Under Berson’s leadership, BDO has expanded to be in 24 of the top 25 markets in the United States, with Portland, Oregon, remaining the only exception. The firm’s revenue in the U.S. totaled $1.8 billion for the 12-month period ending April 30. Hertzbach will bring an additional $20 million to $25 million in revenue, Berson said.
Hertzbach provides assurance, tax and advisory services to clients throughout the mid-Atlantic region, with particular strength in construction, real estate, health care, government contracting, manufacturing, nonprofit and financial services.
“We will no doubt enhance our service capabilities especially in the mid-Atlantic region in assurance, tax and consulting services,” Berson said. “The geographic region is important because we can bring more services to clients in Baltimore, Northern Virginia and Greater Washington to continue to build a footprint across the country.”
Hertzbach has been a part of the BDO Alliance for 17 years, a partnership that enabled Hertzbach to ensure clients could access services the firm may not be able to provide otherwise. Joel Chazen, managing partner of Hertzbach, said the company decided to pursue a combination with a larger firm because of the opportunity to grow at a time when the landscape of the accounting industry is quickly changing due to a significant number of mergers and acquisitions.