Mazars US to combine with Forvis to form $5bn global network

NEW YORK – In a strategic move to strengthen their global presence, Mazars and Forvis have announced the formation of a global alliance under the brand Forvis Mazars. This alliance will enable Forvis to expand its primarily US-based operations globally and strengthen Mazars’ position in the US market. The merger is part of a larger deal aimed at establishing a global audit and advisory network with an estimated annual revenue of $5 billion, responding to the industry trend of consolidation for scale and technological advancement amidst slowing service demand.

The decision to merge Mazars’ US business with Forvis was agreed upon on Monday, with operations expected to commence from June next year. The newly formed global board, comprising equal representation from both firms, will supervise this network. Despite the merger, both firms will maintain their existing management structures outside the US and keep their profit pools separate.

Hervé Hélias, CEO of Mazars Group, emphasized the significance of the merger for Mazars, stating that it would provide the necessary scale and presence in the US market. On the other hand, Tom Watson, CEO of Forvis, highlighted the opportunity this two-firm network presents in better serving clients with international needs.

Forvis, which was formed last year through the merger of BKD and Dixon Hughes Goodman and ranks ninth in US revenue according to Accounting Today, has small offices in Toronto and London but is predominantly active in the US with 6,000 staff members. Mazars, despite slipping in the rankings of US accounting firms by revenue—from 24th five years ago to 30th today with just over $260 million in annual revenue—now stands to benefit significantly from this merger. Mazars’ 1,120 staff based in the US will join forces with Forvis’s extensive team.

This development comes as BDO USA recently transitioned from a traditional partnership model to a more corporate structure for tax benefits and deal flexibility. Additionally, Mazars had previously launched a “North American alliance” in 2019 to enhance its services to multinational clients. The firm’s association with former client Donald Trump has drawn scrutiny following a trial over alleged fraud at Trump’s business entity.

The global head of RSM, another major accounting firm, has also shown openness to merger discussions with competitors, indicating a broader industry openness towards consolidations.

As these two firms unite under Forvis Mazars, they are set to create a robust platform designed to meet the evolving demands of clients across the globe while navigating an increasingly complex business landscape.

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