Hunt Valley, Maryland-based accounting firm Kahn, Berman, Solomon, Taibel & Mogol, P.A. (KBST&M) is merging with fellow Baltimore County firm Varanko & Black CPAs, effective January 1, 2025. This strategic move is set to strengthen both firms’ market presence and service offerings, including business valuation services—a key area of interest for valuation practitioners.
A Strategic Merger in the Making
This merger, which involves no cash exchange, will combine KBST&M’s $7.5 million in annual billings with Varanko & Black’s $2.5 million, creating a firm expected to generate $10 million in annual revenue. The newly combined firm will operate under the KBST&M banner from their existing Hunt Valley office.
Jeffrey Berman, managing partner at KBST&M, shared the strategic rationale behind the merger:
“Their focus in tax and business accounting services is well-aligned with the array of services we provide to our clients. Most importantly, they share our proactive approach and dedication to meeting our clients’ needs with the highest standards of excellence and professionalism.”
Strength in Numbers
The merger brings together 53 employees, including 10 partners, consolidating their expertise into one cohesive team. KBST&M’s long-standing history of growth since its founding in 1985 positions the firm to effectively integrate Varanko & Black’s team and expand service capabilities.
Enhanced Capabilities
For valuation professionals, this merger is particularly noteworthy as both firms bring significant experience in business valuation services, alongside their tax, accounting, and advisory offerings. KBST&M’s robust suite of services, which includes management advisory, high-net-worth services, and IT consulting, will now benefit from Varanko & Black’s additional capacity and expertise.
Steve Varanko, managing partner at Varanko & Black, emphasized the benefits to clients:
“In this rapidly evolving business environment, we recognized that growing our firm with talent, technology, resources, capacity and expanded services was in our clients’ best interests. In KBST&M, we have found a powerful partner with a compatible people-focused culture and an equally strong track record of serving closely-held businesses and customizing their services to meet each client’s needs.”
A Continued Commitment to Excellence
Both firms have deep roots in the Baltimore County community and share a commitment to delivering tailored, client-focused services. The merger reflects a trend of consolidation within the accounting industry, where firms are seeking partnerships to enhance their competitive edge, expand service offerings, and meet the growing complexity of client needs.
What This Means for Valuation Practitioners
For professionals in the valuation field, this merger signals an increased emphasis on the integration of business valuation services within larger accounting practices. The combined expertise and resources of KBST&M and Varanko & Black position the newly merged firm as a strong player in the regional market, capable of addressing complex valuation needs for closely held businesses, estates, and other financial matters.
The merger also underscores the importance of adapting to client demands and leveraging strategic partnerships to stay competitive. For valuation firm owners, this serves as a reminder of the opportunities—and challenges—presented by industry consolidation.
As the business landscape evolves, mergers like this one highlight the value of collaboration and the benefits of scaling operations to better serve clients. Stay tuned to Practice Valuation for more updates on industry trends and insights.
