Squar Milner LLP in Newport Beach said it’s acquiring DZH Phillips LLP in San Francisco to become the fourth-largest accounting firm headquartered in California.
“We’re a strong Southern California firm, and they are a strong Northern California firm. Both of us desire to be a strong California firm,” founder and Managing Partner Steve Milner said in an interview.
The largest independent accounting firm based in Orange County has more than $77 million in revenue and 350 employees. DZH Phillips, one of the state’s largest majority female-owned firms has $20 million in revenue and more than 110 employees.
“The Squar Milner combination will give our people expanded opportunities to grow and provide our clients innovative and specialized resources and services,” said Lawrence B. Wood, managing partner of DZH Phillips.
Besides Newport Beach, Squar Milner has offices in Los Angeles, San Diego, Encino, Silicon Valley and the Cayman Islands. DZH Phillips has offices in San Francisco, Oakland, San Rafael and San Mateo.
Squar Milner will be the name of the combined firm, one of the five largest based in the West and one of the 50 largest in the U.S. The deal is expected to close on Jan. 1.
The companies share many values, including a focus on change, growth and diversity, Milner said.
In the long run, both want to make their mark in California, he said.
“We think there is real market distinction in being the California firm. We don’t have a desire to be a national firm.”
In July, Squar Milner climbed three spots to No. 5 on the Business Journal annual list of the county’s biggest accounting firms. The firm boosted OC employee count 19% to 184, the most growth among the 30 largest firms in OC.
The firm as it exists now began in 1990 with Milner a founder. It merged in 2007 with a smaller San Diego-based firm founded in 1951.
