Recently, BDO USA LLP announced the acquisition of Florida-based MBAF LLC. This merger is significant, as MBAF is currently the 38th largest accounting firm in the US and the largest in South Florida.
MBAF is one of the largest Hispanic-owned businesses in South Florida, and is recognized as a regional leader in philanthropy, ranking 9th in South Florida Business Journal’s 2020 annual Corporate Giving/Corporate Foundation list of companies with the highest levels of cash contributions to South Florida charities.
The acquisition primarily expands BDO’s presence in Florida for non-public audits. Additionally, the merger includes local affiliate White Owl, an advisory firm primarily specializing in IT implementation and application services, as well as NYC’s Financial Management Associates, LLC, an advisory firm specializing in non-profit operations and fiscal management consulting.
Pension Fund Clients (ERISA)
In the pension fund market, the acquisition will increase BDO’s Southeast clients by approximately 51%, with MBAF clients representing 34% of the merged firm’s ERISA audit engagements in this region.
Non-Profit Clients
The acquisition will increase BDO’s NFP practice by approximately 40% in the Southeast region, and 11% overall. MBAF’s significant involvement in the Florida community, as well as the non-profit focus of Financial Management Associates, seems to provide BDO significant opportunity for future growth in the non-profit sector.
Registered Broker Dealers
The merger will increase BDO’s registered broker dealer audit practice by 33% and expands its reach into the US Southeast, a region in which BDO previously had no representation.
Koltin Consulting Group CEO, Allan Koltin, recently described the BDO MBAF merger as “the deal of the century.” The deal significantly expands the firm’s presence in Florida, as well as in the non-profit and financial services industries. This move seems to fit into an overall growth strategy aimed at expanding regionally via acquisition and fits in with the firm’s 2020 acquisitions of Las Vegas’s Piercy Bowler Taylor & Kern CPAs and Denver’s ACM LLP.
This analysis uses data from the ERISA, Non-Profit, and Broker Dealers databases, powered by Audit Analytics.
For more information about Audit Analytics or this analysis, please contact us.
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