By GUNDI JEFFREY
The Bottom Line - August 2008
Collins Barrow, Canada's eighth largest accounting organization and an affiliate of the Praxity Global Alliance, has re-established itself in Canada's business hub after losing its Toronto partner earlier this year. By adding in June new affiliate DMCT LLP, the network gains 13 partners, 67 professional and support staff, along with revenue of about $13 million.
Formerly part of the international Nexia association, DMCT is a single-office firm in midtown Toronto with "a market-leading reputation, particularly in the areas of public markets and transaction advisory services," said Collins Barrow chair Lionel Goldman. "In recent years, the firm has experienced above industry average growth, propelling it from relative obscurity to an industry leader with a recognized and respected brand."
"We have worked hard, over the past six months, to re-establish Collins Barrow's presence in Canada's largest market," Goldman continued. "DMCT emerged as the strongest candidate among the many we met and were interested in representing us in Toronto."
Harry Blum, who has been appointed managing partner of the new Toronto off ice, added that, "by joining Collins Barrow, we retain our independence and autonomy while being able to take advantage of the collective size
and reach that Collins Barrow provides.
"Maintaining control over our own destiny but, at the same time, being able to take advantage of the benefits that national integrated partnerships have is truly a win-win scenario."
Collins Barrow's history traces back 85 years, and spans 23 independent offices from Vancouver to Halifax, Blum pointed out.
"It was founded for the express purpose of aligning like-minded firms and allowing them to operate independently, and this ‘best of both worlds' philosophy was a perfect fit for DMCT."
Although DMCT will be operating as Collins Barrow Toronto LLP, the association's unique cooperative legal structure allows member firms to maintain their autonomy while working together to develop strategies, programs and support services.
According to Goldman, "Our members avoid many of the potentially negative issues that our integrated competitors face while still reaping the benefits." He acknowledges, though, that firms such as KPMG have adopted this or similar structures internationally.
The loss of Mintz & Partners to Deloitte in January 2008 caught Collins Barrow by surprise, although its leaders tried to put the best face on it. "It reflects positively on our organization to have a firm with the respect level of Deloitte pursuing one of our members," Goldman said at the time. While lauding Mintz's contribution to the Collins Barrow association, he did note that Mintz had not shared a unified branding approach with Collins Barrow. Mintz's merger with Deloitte, he said, permitted the development of a cohesive branding strategy that would not have been possible before. And that is exactly what has happened, he said.
Since January, Collins Barrow continued to have a presence in Toronto via its offices in Vaughan and other centers around the Greater Toronto Area. But, Goldman noted, "while this strategy worked in the interim, our board recognized the urgency to recruit a strong new member firm in the heart of the city."
Although several firms expressed interest in becoming the association's Toronto practice, DMCT was one of the targets that Collins Barrow identified and approached itself.
"The firm scored well in areas such as strong reputation within the professional community, innovative, distinctive service offering and profitability," Goldman said.
Blum said the merger solved a huge logis