Sacramento-based accounting firm Macias, Gini & O’Connell LLP has acquired Newport Beach-based Moreland & Associates Inc. to build on its business in Orange County.
Terms of the deal weren’t disclosed.
Moreland & Associates ranked No. 17 on the Business Journal’s 2007 list of the 40 largest accounting firms doing business in the county.
It has about 45 people at its Newport Beach headquarters, most of them accountants. The firm saw some departures in the past year.
All of Moreland’s accountants were offered positions at Macias, according to Kevin O’Connell, Macias’ managing partner.
All but two accountants accepted jobs, he said.
Macias, Gini & O’Connell started talking about an acquisition with Moreland last year and closed a deal in April, O’Connell said.
Michael Moreland is set to continue running the Newport Beach office as managing partner and will report to Jim Gazi, a regional managing partner for Macias’ Southern California offices.
Macias has more than 100 accountants at seven offices in Sacramento, Walnut Creek, Oakland, Los Angeles, San Diego, San Marcos and now Newport Beach.
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O’Connell: managing partner of expanded firm |
The firm has carved its niche by offering tax compliance, accounting and assurance services for governments and companies in technology, real estate, manufacturing and healthcare.
Macias’ clients include the counties of Orange and Los Angeles, John Wayne Airport and the California Public Employees’ Retirement System.
Through the years, Macias considered opening an OC office as its local client base grew, according to O’Connell.
Rather than going it alone, the firm opted to acquire Moreland since it already had a strong client and accountant presence in OC, O’Connell said.
“Culturally and strategically it was a good fit for us,” he said. “We want to build on the reputation that Mike Moreland created with his firm.”
Joining a regional firm gives a local player like Moreland a chance to broaden its business in a market that’s overflowing with accounting firms.
Competition for Work
Together, Macias and Moreland face a handful of rivals, both big and small.
The big players,Deloitte & Touche USA LLP, KPMG LLP, Ernst & Young LLP, PricewaterhouseCoopers LLP and Grant Thornton LLP,dominate local accounting.
Moreland counted a handful of local rivals including Newport Beach-based Squar, Milner, Peterson, Miranda & Williamson LLP, Anaheim’s White, Nelson & Co. and Irvine-based Haskell & White LLP.
Macias is looking to its personal services business, which links up businesses with temporary and full-time accountants, to help the firm stand out.
Growing regulatory complexity should generate work for Macias and other accounting firms, O’Connell said.
Increased scrutiny from the Securities and Exchange Commission and the 2002 Sarbanes-Oxley Act continue to push publicly traded companies to spend more money on their accounting practices, he said.
Businesses that are dealing with ever changing tax laws that require more scrutiny and documentation also should generate work, O’Connell said.
“A lot of small to midsize companies need assistance with the complexity of the regulatory environment,” he said.
Macias is keeping its eyes peeled for more accountants. But it’s unclear how many more the firm plans to bring in this year.
This year, Macias plans to build ties with the local businesses to generate more awareness of the firm and to try and win clients.
“We’re always looking to grow,” O’Connell said.
