Reading-based accounting firm Herbein & Co. has pushed farther into the Philadelphia market by acquiring Gable Peritz Mishkin (GPM), a firm with locations in Spring House, Pa. and Marlton, N.J.
The deal adds five partners, 24 total employees and about $5 million in annual revenue to Herbein & Co, which had 20 partners, 175 employees and about $28 million in revenue before the buy. Based on the 2017 Inside Public Accounting list of the largest U.S. CPA firms, Herbein would move from 119th to 108th — passing the largest firm based in this region, Horsham’s Kreischer Miller, writes Jeff Blumenthal for Philadelphia Business Journal.
Michael Rowley, Herbein’s COO, said the two firms were connected by consultant Ira Rosenbloom. He said an introductory lunch led to checking out GPM’s operations and the realization that there were cultural and practice fits. In addition to a larger presence in the Philadelphia region, Rowley said that GPM’s practice representing real estate and construction businesses would fill out its own offerings.
In return, GPM Partner Thomas W. Masoero said his firm gets the broader services offerings of a larger firm, specifically Herbein’s consulting business that includes business valuation, M&A, cash flow forecasting and strategic planning. Rowley said consulting now consumes about 30 percent of Herbein’s revenue stream.
Herbein has been in operation for more than 45 years, with clients in all but four states. Like most firms its size, it does not handle audits for public companies but does its fair share for privately held businesses. It has offices in Allentown, Pittsburgh, Allison Park, Camp Hill, Greensburg and Pottstown — the latter of which was opened last year via the acquisition of Mike Cross & Co., a four-person firm with deep roots in that portion of Montgomery County.
“We will keep both [Montgomery County] offices,” Rowley said. “Mike’s group has done really well so we don’t want to close that office. And GPM will really help us expand there.”
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