Business & Professional

ENTREPRENEUR

Merger Of CPA Equals

Veteran professionals develop new way of doing business.

movie projects.
Frank, Hirsch, Subelsky and Freedman
handles many second- and third-genera-
tion families and businesses, "which I
think is a strong vote of confidence in our
abilities," stressed Frank. "These families
have been trusting us to do a good job
over the years."
The firm gets about 90 percent of its
business from referrals and by "word-of-
mouth" in the community.
Several clients live in Arizona,
California, Florida and Nevada, where
many Michigan residents, including a
number in the Jewish community, spend
the winter.
"Because our firm is a smaller, more
nimble firm, we can offer rates that are
typically more cost-effective than our
larger competitors:' said Hirsch.
For proprietary reasons, the partners
declined to discuss actual rates or the
names and total number of clients.

Bill Carroll

Special to the Jewish News

A

ccountants know there's
strength in numbers. And
members of two local account-
ing firms hope they'll become stronger by
merging their operations into one corn-
p any.
Dennis Frank, 68, of West Bloomfield
and Stanley Freedman, 70, of Bloomfield
Hills had been working together since
1984. Dan Hirsch, 55, of West Bloomfield
and Steven Subelsky, 55, of Farmington
Hills had their firm since 1998.
In January, the four Jewish certified
public accountants combined for the
newly formed firm of Frank, Hirsch,
Subelsky and Freedman in 3,800 square
feet of office space on Northwestern
Highway in Farmington Hills.
"These are changing times in the busi-
ness world and the marketplace, and com-
panies must look for innovative ways to
adapt, such as mergers," explained Frank.
"That's why we chose to combine more
than 150 years of accounting experience
between the four of us into one company.
We'll continue to focus our efforts on local
clients and personalized servic'
Mark Koziel, senior technical manager
for the American Institute of Certified
Public Accountants, a 350,000-member
association based in New York City, says
the merger of accounting firms has defi-
nitely become a trend in the United States
in the last few years.
"We've seen an increase in mergers
of this type and we expect there will be
even more over the next five years," Koziel
added. "In view of the current economic
times, mergers make sense because they
result in cost sharing and other financial
efficiencies."
It's a good time to merge because,
according to the U.S. Bureau of Labor
Statistics, the number of accountants and
auditors in the U.S. is expected to grow by
18 percent through 2016. That's faster than
the average for all occupations. The increase
is attributed to a rise in entrepreneurship,
changing financial laws and corporate gov-
ernance regulations. There are now about 1
million accountants in the U.S.

The Right Mix
The four local men had been acquainted
with each other for a long time. Frank
and Freedman attended Detroit Mumford

Dennis N. Frank, Daniel Hirsch, Steven Subelsky and Stanley N. Freedman

grow, while current clients can enjoy
High School; Hirsch and Subelsky went
consistency in the professional staff',' said
to Southfield High. Frank, Freedman
Frank.
and Hirsch graduated from Wayne State
University in Detroit; Subelsky is a gradu-
Better To Serve
ate of Michigan State University and Troy-
Some CPA mergers are creating mega
based Walsh College. Frank and Freedman
firms with hundreds of certified public
belonged to the same national firm at
accountants, but Frank,
one time; Hirsch actu-
Hirsch, Subelsky and
ally worked for Frank in
Freedman chooses to be
the early 1990s. Later, all
relatively small, focusing
of their offices were near
on local individual clients
each other, and they would
A*.
and businesses and per-
have informal conversa-
sonalized services. The
tions at health clubs and
four partners agreed they
restaurants.
target small-to-medium-
"The merger talks really
size businesses and high-
got serious when we real-
income individuals.
ized our leases were expir-
"This allows us to keep
ing at the end of last year,"
in touch with clients like
noted Hirsch. "It was time
no huge firm could," said
to make a decision, and we
Subelsky.
merged into this offic'
The business clients
The firm now has nine
A characterization on a
cover a dozen different
other CPAs, three support
CPA's desktop.
industries, including real
personnel and seasonal
estate, health care, distribu-
part-time help.
torships, architects, law and
"The more we learned
medical practices, non-profit organiza-
about each other's services during our
tions and even a Hollywood movie pro-
merger discussions, the more we deter-
ducer who came aboard after shooting a
mined we had a lot in common," Hirsch
film in Detroit last year to take advantage
pointed out.
of Michigan's new 42 percent tax rebate for
"The merger allows the new firm to

Staying Sharp

"Our biggest challenge on a day-to-day
basis is dealing with the complexities of
the accounting business and the new tech-
nology," observed Subelsky. "We have to
keep up with the drastic changes in the tax
codes and other new laws each year. We're
required to take 80 hours of accounting
education annually and an outside firm
of our peers reviews our office and proce-
dures every three years."
The partners feel the most important
new technology to be made available in
their business in recent years is the sophis-
ticated computer software that allows elec-
tronic filing of income tax returns.
"E-filing saves time, supplies, storage
space and allows us to have a 'greener'
office in general," said Sublesky."We now
can usually get a state refund in five days
for a client."
"Some firms just find the right niche
in a particular type of business," said
Frank. "I feel we've done that through this
merger. Each of us has strengths and we
complement each other in the handling
of our clients. We really get to know them,
their families and their life cycles very
well, and provide personalized service.
"In this business, you're an accountant
60 percent of the time and a psychologist
40 percent of the time, listening to the per-
sonal situations of clients. This helps us
gain their respect and establish a stronger
identity as a new firm." 11

May 21 • 2009

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