🔒Here’s why Maine-based BerryDunn purchased a CT accounting firm

Merger activity remained hot in Connecticut’s accounting industry last year, as smaller firms looked to combine resources with larger outfits that can bring new leadership, talent and technology.

In early December, East Haven-based accounting firm Burzenski & Co. became the latest Connecticut firm to ride the consolidation wave, when it joined forces with Portland, Maine-based BerryDunn, New England’s largest accounting firm by revenue, according to Accounting Today.

Terms of the deal were not disclosed.

The move adds to BerryDunn’s growing geographic footprint in New England, which has expanded southward over the last decade with the firm’s acquisition of Glastonbury-based Compass Health in 2017; Massachusetts-based Rodman & Rodman CPAs in 2019; and West Hartford-based VantagePoint Healthcare Advisors in 2021.

The deal with Burzenski, finalized Dec. 1, gives BerryDunn an additional 35 employees and a second location in Connecticut. Burzenski continues to operate from its East Haven office under the BerryDunn name. BerryDunn also has an office in Glastonbury.

“We’re very excited about the opportunity this brings to expand our reach in southern New England,” BerryDunn CEO Sarah Belliveau told Hartford Business Journal in an interview.

‘Growth opportunity’

Founded in 1974, BerryDunn provides assurance, tax and consulting services to businesses, nonprofits and government agencies, and specializes in the healthcare, government, education and commercial sectors.

The firm has nearly 1,000 employees and offices in seven states and Puerto Rico. It reported revenues of more than $167 million in 2023.

Burzenski & Co., founded in 1983, first approached BerryDunn about a possible merger through a third party a few years ago, Belliveau said. She said the firm was attracted to BerryDunn’s culture and its “investment in people, technology, and learning and development.”

BerryDunn, meanwhile, was attracted to Burzenski’s national reputation and more than 150 clients in the veterinary practice market, a niche in which BerryDunn was looking to gain a foothold.

“So, it made a lot of sense for us to just expand our reach in that market through the Burzenski acquisition,” Belliveau said. “They also have a very robust construction practice that fits very nicely with ours.”

The firm also was drawn to Burzenski’s strong track record in outsourced accounting — one of BerryDunn’s fastest-growing practices — which provides businesses with back-office services ranging from bookkeeping and sending invoices to more complex tasks like managing payroll.

Over the past three years, BerryDunn’s outsourced accounting services have grown by more than 175%, according to the company.

The merger “felt like the right way for us to really launch that (outsourced accounting) team and provide a great growth opportunity,” Belliveau said.

BerryDunn’s approach to acquisitions has typically been less about geography and more about the business’s culture and what it brings to the table, Belliveau said. But she said the firm is open to further acquisitions here if the right opportunity presents itself.

“We don’t seek out acquisitions as a strategy for growth, but when opportunities come, if there’s a benefit to our people and clients, we will always explore them,” she said.

Merger trend

Nationwide, the accounting industry is in a “cycle of transition” as firms struggle with a shrinking labor pool and the need to invest in new technology, such as artificial intelligence, to remain competitive, Belliveau noted. Those challenges continue to fuel consolidation, as smaller firms look to larger players to gain access to additional resources.

According to an August 2024 report by Boston-based investment banking firm Capstone Partners, there were 70 merger-and-acquisition deals in the accounting services industry through the first half of last year. Activity in the sector peaked post-pandemic in 2023 with 160 deals.

The national trend is playing out in Connecticut, with several accounting firms announcing M&A plans over the last few years.

Last year, national accounting firm Marcum LLP acquired Farmington-based Federman, Lally & Remis. Months later, Marcum itself was acquired in a $2.3 billion deal with financial services advisory giant CBIZ Inc.

Other recent deals include the merger of Glastonbury firms Giamalis and Co. and MahoneySabol, as well as the 2023 link-up between CPA firm Fiondella, Milone and LaSaracina LLP, based in Glastonbury, and Bregman & Co., which has offices in Stamford and Avon.

“The changing landscape across the professional services industry is challenging for everyone,” said Belliveau.

She said the merger with Burzenski will make it easier for both firms to focus on client outcomes and expanded services across their combined client base, which will “continue to provide opportunities for our people to do work that is meaningful to them.”

Belliveau said her No. 1 priority in the short-term has been to integrate the two teams and ensure a seamless transition for Burzenski’s clients. As the firm begins to plan for fiscal year 2026, it will look for more opportunities to learn from and replicate some of Burzenski’s practices.

For instance, BerryDunn is interested in Burzenski’s expertise in dashboarding and benchmarking services, which help clients track their performance and measure their market competitiveness.

“That’s a really cool service they’ve been providing, and we’ve been doing some of that, but we want to expand,” Belliveau said. “We clearly recognize that it’s something that will benefit our clients and we know our employees will get excited about it.”