Combination will create $600 million middle-market accounting/tax/audit leader in the western U.S. with strong oil & gas practice group
Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, and Hein & Associates LLP, a top 100 and one of the leading oil and gas accounting firms, have signed a letter of intent to combine the two firms.
The firms said they expect the agreement to be effective on Nov. 1, 2017.
Moss Adams industry practices include almost 30 industry groups including aerospace, utilities, manufacturing, construction, forestry, healthcare, technology and wine, but not oil & gas.
“We’re thrilled to combine with Hein & Associates and solidify our presence in key western markets,” said Chris Schmidt, Moss Adams chairman and CEO, in a statement.
“Hein brings a nationally recognized oil and gas practice, a new sector that will round out the existing industry portfolio at Moss Adams,” Schmidt said.
Hein & Associates provides accounting and advisory services to clients across a number of industries, including energy, manufacturing and distribution, real estate, construction and technology.
In an interview today with Oil & Gas 360® following the firms’ announcement, Hein Managing Partner Jim Brendel said the two firms had discussed the idea of the combination for a little over six months. “We weren’t out looking; they found us,” Brendel said.
“It became clear as we learned more about Moss Adams that there’s a strong cultural fit, which was a critical factor in our decision,” Brendel said. “When I looked for potential deal-killers, culture was No. 1.”
Brendel said Hein also looked at Moss Adams’ approach to technology and how it is evolving in the accounting and consulting space. “Being with a firm with the resources to stay out in front of the technology that is coming to the industry and how we provide services to our clients was very important to us,” Brendel said.
“Moss Adams has a strong west coast presence but they did not have an oil and gas practice or a presence in Colorado,” Brendel said.
Hein’s $60 million in revenue comes to approximately 10% of the combined revenues of the combined firms. Hein’s oil and gas and energy practice is almost half of its business.
“The feedback we’ve gotten from our clients has been very positive,” Brendel said.
Brendel will be in charge of the combined firm’s ‘central region’ which includes Denver, Dallas, Houston, Albuquerque and Kansas City.
Moss Adams’ founding dates back to 1913 in Seattle. The combination with Hein will add roughly 300 new personnel to Moss Adams, including 35 partners, bringing the total headcount at Moss Adams to nearly 2,900 in 26 locations.
