MH CPA and Kenilworth Holdings have formed a joint venture called MH Kenilworth, an accounting firm focused on increasing client profitability.
MH CPA is based in Champaign, Illinois, and offers audit, tax, advisory and transaction services to 28 clients across the U.S. Kenilworth Holdings is headquartered in Chicago and operates an offshoring entity in India. Together, the joint venture will service firms with less than $10 million in revenue, offering offshoring, technology solutions, valuations, transfer pricing, M&A support, CFO services and business consulting, as well as audit, accounting and tax services.
“Companies become successful because they grow their revenue or lower their cost,” MH Kenilworth CEO Todd Shapiro, a former president and CEO of the Illinois CPA Society, told Accounting Today. “How are we [the profession] on a regular basis doing that? We don’t.”
“Show me a firm that became wildly successful because they had a clean audit, and I’ll show you a company that’s out of business,” he continued. “Now show me a company that’s become wildly successful because of your tax strategy, and again, I will show you a company that’s out of business.”
But what is the difference between this model and the firm being bought up by private equity?
“We don’t own them. They don’t own us,” Shapiro answered. “Typically, that’s not done — typically, there’s a connection between the two.”
The joint venture is mutually beneficial: Kenilworth gains a platform and an arsenal of contractable services, while MH CPA maintains its independence and grows deeper into or beyond its geographic footprint without spending its own funds. For example, if Kenilworth adds another firm, MH CPA would be the one to acquire it, Shapiro explained.
“Our firm has thrived by embracing innovation and forward-thinking strategies in the industry, and we look forward to bringing that same expertise and perspective to MH Kenilworth,” MH CPA CEO and managing partner Jeff Livesay said in a statement. “The joint venture offers an opportunity to enhance our capabilities through Kenilworth’s global talent resources and expanded services while strengthening and complementing MH CPA’s core competencies. We’re excited to build and expand the MH platform.”
“Staffing remains one of the most pressing issues facing accounting firms in the U.S. and globally,” John Wesley, a principal at Kenilworth Global Financial Advisors, said in a statement last week. “At Kenilworth Global Financial Advisors, we have built a successful model for providing high-quality, cost-effective staffing solutions and specialized services such as valuations, transfer pricing and technology solutions. Partnering with MH allows us to expand our U.S. presence while delivering greater value to firms across the country.”
Credit: Source link
