After expanding its operations in Rhode Island via merger, West Hartford accounting firm BlumShapiro next plans to strengthen its foothold throughout New England, focusing on more Massachusetts offices next, including Worcester and Springfield.
“Our objective is to be the largest accounting and tax advisory firm in New England,” said Thomas DeVitto, BlumShapiro chief marketing officer. “It has been that way for quite some time.”
On Jan. 1, BlumShapiro finalized its merger with Providence, R.I. accounting firm Sullivan & Co., bringing the firm’s total number of employees to 340. The merger gave BlumShapiro its first presence in Rhode Island and put the company among the Top 50 largest accounting firms in the nation.
“That has long been a goal of ours,” DeVitto said. “Being in the Top 50 enables us to bring the expertise and size needed to service mid-sized firms and still operate as a local firm.”
BlumShapiro now has offices in West Hartford; Shelton; Boston; Rockland, Mass.; and Providence, R.I.
Massachusetts will be a key market for BlumShapiro moving forward, DeVitto said. Not just the Greater Boston area but outlying areas such as Worcester and Springfield.
“Strategically, Massachusetts is very important in New England,” DeVitto said.
The Worcester and Springfield areas offer a lot of opportunity for business growth, DeVitto said, and having an overall stronger foothold in Massachusetts will keep the firm robust throughout New England.
The need for BlumShapiro and other accounting firms to expand is part of a larger industry survival trend that has been going on for the last several year, said Art Renner, executive director for the Connecticut Society of CPAs.
After years of larger and national firms ignoring New England, they started to cross the border from New York and build up their local presence by setting up offices and acquiring smaller regional firms, Renner said. This leaves the New England firms to either be acquired by those national firms or strengthen their New England footprint.
As the largest firm in New England, BlumShapiro needs to keep up with the acquisitions to stay ahead of the curve, Renner said.
“Extending now in Rhode Island is just another sign of the larger firms expanding their geographical footprint,” Renner said. “I would expect to see all these firms continue to be on the lookout for new partners.”
The Sullivan & Co. merger was BlumShapiro’s seventh in 13 years and its third since 2009.
BlumShapiro’s managing partner, Carl Johnson, is constantly looking for new opportunities, DeVitto said. Johnson wants controlled, profitable growth, and wants to focus expansion only in the six New England states.
Rhode Island was an important strategic market for BlumShapiro as part of this growth plan, DeVitto said. The firm chose Sullivan & Co. because its quality and reputation were akin to BlumShapiro’s.
“We are proud of our success and fine record of client service,” said Timothy Sullivan of Sullivan & Co., now BlumShaprio office managing partner in Providence. “The combined firms can best offer the resources and specialties of a large firm coupled with the responsiveness of a local firm, giving us a distinct market advantage.”
