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The merger between high 50 accounting companies Elliott Davis and Whitley Penn—a deal that was slated to shut on Nov. 1 and kind a brand new agency known as Elliott Penn—has been known as off and each companies have gone their separate methods, a supply with data of the state of affairs who requested to stay nameless informed CPA Follow Advisor on Nov. 23.
Information of the deal falling aside was first reported by Going Concern on Tuesday. The positioning had acquired an nameless tip that the 2 companies had canceled the merger.
Why Elliott Davis and Whitley Penn determined to stroll away from the deal has not been revealed or confirmed, however an worker of one of many companies informed Going Concern anonymously the explanation they heard was as a result of “the cultures didn’t match.”
“It was bizarre. Only a easy e mail went out to the agency saying the merger was known as off. No rationalization,” this particular person stated.
The 2 companies introduced their plans to mix on June 13, and because of the “merger of equals,” the brand new agency—Elliott Penn—was anticipated to change into one of many high 25 largest within the U.S. by income.
The 2 companies promoted the merger in June by saying Whitley Penn Managing Associate Larry Autrey and Elliott Davis CEO Rick Davis had a pre-existing relationship, which set the desk for the deal.
“Elliott Penn is the results of a long-term relationship which became a mutual dialog about what could possibly be,” Autrey stated in an announcement at the moment. “We selected to mix now, by means of a trusted relationship which allowed us to work collectively to create a singular alternative for our clients and our individuals. I couldn’t be extra enthusiastic about what Elliott Penn will supply to the market and our groups.”
Davis added: “By our conversations in regards to the altering dynamics in our business, we acknowledged that collectively we’d cowl the most popular progress markets within the nation. I’m thrilled to have the ability to deliver our capabilities to a broader vary of shoppers by means of Elliott Penn and supply a pretty alternative inspiring others seeking to be in the very best place for the longer term.”
Hyperlinks to the press releases asserting the merger on each companies’ web sites are now not lively.
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