Baird, Kurtz & Dobson reported revenue of $117.75 million last year, ranking it 11th on Public Accounting Report's Top 100 in 2000. Olive ranked 18th, with $65.5 million. The new firm will boast combined revenue of more than $200 million and 27 offices in 11 states. The merger will bring together approximately 1,500 employees, including nearly 200 partners.

"I think both firms have recognized the need to grow geographically to a larger market dominance," said William E. Fingland, managing partner of Springfield, Mo.-based Baird, Kurtz & Dobson.

Fingland will become managing partner of BKD. Olive chief executive officer John D. Harris will be actively involved with the transition until his retirement on May 31, 2002. BKD's headquarters will be in Springfield.

"The contiguous placement of our states clearly gives us regional dominance," Harris said in a statement. "This dominance and our superior client service will give us the market presence and the respect it takes to be the trusted advisor and strategic partner of choice throughout the 11-state region."

Both firms focus on family-owned and middle-market clients. By merging the firms, Fingland said BKD hopes to enhance client service, provide better opportunities to staff and become more visible to spur partnership activity. Fingland said BKD would branch out to its services the technology and human resources sectors as well.

"Those kinds of additional services that we are working on to develop today, we will be able to work together to develop," he said.

The transition will be smoother due to the firms' familiarity with one another, Fingland said. Baird, Kurtz & Dobson and Olive have worked together before through organizations such as The American Group of CPAs and Infinet Resources, Moores Rowland International and the American Institute of Certified Public Accountants.

"The people in managerial positions today in Baird, Kurtz & Dobson and Olive have grown up as brothers and sisters," Fingland said. "We have just known one another for years and years and years. Which made the discussions about the merger easier."

Fingland acknowledges some administrative jobs that overlap will have to be eliminated, but said BKD will not close any offices. He said he hopes that some employees could be relocated. An outplacement service has been brought in to help some employees find jobs outside the company.

The merger does not mean BKD has any plans to go public. Fingland said he believes BKD's clients will be better served by a privately held company.

"We know who we are, culturally we are independent entrepreneurs," he said. " It's different strokes for different folks. That's just not for us."

Olive's plans to merge with Southfield, Mich.-based Plante & Moran failed in September after four months of discussions. The firms cited operating issues as the sticking point that ended the talks.(See Operating Differences Cited in Failed Plante/Olive Merger Talks)

Baird, Kurtz & Dobson has merged six firms into its fold in the past year and a half: White Petrov McHone, McGee, Wheeler & Co., Neill & Associates, Cribari & Gustofson, Nygren, Sears & Co., and Muskrat & Ducan.

-- By Dan Engel

Send comments to dane@pro2net.com.

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