On the CPA side, the strains of weaving together diverse practices appear to be harder than everyone thought. Some consolidators had their own woes. Cbiz, its stock faring poorly, left the door open to a possible sale in 1999, and the announcement it might be shopping its recently acquired businesses helped slow its progress. It subsequently divested its risk-bearing specialty insurance operations. Still, consolidators and super-VARs remain committed to expansion.
Larger firms can leverage marketing campaigns and consistent implementation technologies.
Minneapolis-based McGladrey is well on its way to becoming a national tax, accounting, and consulting firm, with more than 75 offices in place. Additionally, it is affiliated with 80 independent accounting firms through the McGladrey Network. McGladrey's buying binge continues, most recently with the purchase of Great Plains reseller Technology Group, which serves the Philadelphia area, in January. McGladrey has targeted 25 metro markets as key to becoming a nationwide juggernaut. A lot of them are looking to be acquired.