Reznick Group and JH Cohn are planning to merge, creating the 11th largest firm in the US with revenues of $450m and 2,000 staff in 25 offices.
Partners of both firms have agreed to the combination which now awaits final approval and is anticipated to be effective in September.
The merger is the most significant combination since Clifton Gunderson and LarsonAllen joined forces earlier this year.
“The combination of these two great organisations immediately elevates us to a preeminent position on the East Coast with offices from Boston to Atlanta, provides a significant expansion in California, and establishes a national footprint with additional offices in Texas and Chicago,“ JH Cohn chief executive Thomas Marino said.
“This combination of peers changes the landscape of the accounting industry by establishing a firm with an unprecedented concentration of industry experience in real estate, affordable housing, and highly specialized experience in areas such as renewable energy, hospitality, manufacturing and distribution, capital markets, government, construction, life sciences and technology, and valuations.”
JH Cohn is a member of accounting network Nexia International while Reznick Group is a member of the association IGAF Polaris. It is unclear which global organisation the merged entity will stick with.
If the merged firm continues membership with Nexia International, it would be the second significant US addition this year after CliftonLarsonAllen opted to stay with Nexia rather than HLB International. Reznick Group is a $200m firm and its addition plus the revenue gained through the CliftonLarsonAllen merger would elevate Nexia International into the top 10 global accounting networks based on the IAB’s 2012 world survey.
If the combined firm opts to stay with IGAF Polaris, the association would strengthen its position as the third largest association.