MN Accounting Firm Merges With Fast-Growing Chicago Co.
Moquist Thorvilson Kaufmann, LLC (MTK), one of Minnesota’s 15 largest accounting firms, is being acquired by Chicago-based BDO USA, which is part of global business services firm BDO International Limited.
Edina-based MTK was founded in 1990, and several years ago it became a member of the “BDO Seidman Alliance.” MTK Partner Kevin Moquist told Twin Cities Business in a Thursday phone interview that the partnership gave his smaller Minnesota firm access to networking events with other firms around the country and to training, marketing, and other BDO resources.
In 2009, MTK acquired Minnesota’s only other BDO Seidman Alliance firm, Minneapolis-based TK Advisors, which joined the alliance program nearly two decades ago.
Now, MTK is formally merging with BDO, effective Monday. Financial terms of the deal were not disclosed, and MTK’s 60 employees, including six partners, are joining BDO. MTK’s Edina office will operate under the BDO name following the merger.
MTK offers accounting services and primarily serves family-owned and private businesses, as well as a few publicly traded companies. Its client base includes companies in the manufacturing and software technology industries, among others.
BDO USA, meanwhile, offers services to clients in the construction, energy, financial institutions, government contracting, health care, insurance, manufacturing, nonprofit, private equity, real estate, retail, and technology sectors.
The addition of MTK is part of an aggressive expansion plan that BDO announced Thursday. The national firm also announced plans to acquire up to 97 employees from ParenteBeard, LLC's banking practice, who will join BDO offices in the Northeastern United States, and more than 100 employees from Anchorage, Alaska-based, Mikunda, Cottrell & Company, Inc.
Moquist said that BDO had been eyeing a formal expansion into the Twin Cities for a couple of years. MTK and BDO have a “very compatible service philosophy” and a “new depth of resources” made available through the combination will be “great for both clients and employees” of MTK, he said.
BDO USA CEO Wayne Berson said in a statement that the combination gives BDO “a sizable presence with excellent growth potential in the important Twin Cities market.”
BDO plans to leverage its relationship with MTK to continue growing in the Twin Cities, and it may do so “organically or through more M&A,” Moquist said. Mergers and acquisitions have been a major focus for Berson, according to a report by industry publication Accounting Today. The deals announced Thursday are expected to boost BDO USA’s revenue to about $800 million.