Mikaila Adams, Associate Editor, OGFJ
Two regional accounting firms in the Southwest US have merged, which will result in expanded services to the oil and gas industry - specifically E&P companies and service and supply firms.
Dallas/Fort Worth-based Weaver and Tidwell LLP and Houston-based McDonald, Fox & Lund PC merged on Jan.1. The newly merged company will use the Weaver and Tidwell name.
David Rook, audit partner at Weaver and Tidwell comments. “We offer a variety of services from traditional audit and tax services to the industry to internal audit services as well as Sarbanes Oxley 404 compliance. We provide these services for both E&P companies and service and supply companies.” The company also performs work for refining companies, renewable power providers, and biodiesel manufacturers, which are becoming more and more common in the industry.
W.M. “Mack” Lawhon, Weaver and Tidwell’s managing partner, says that the energy practice’s clients constitute “a fairly broad offering.” They range from publicly held E&P companies, to the majors in the refining business, as well as the private enterprise sector (smaller owner operators, drillers, landmen, service companies, and downhole tool manufacturers).
Currently, Weaver and Tidwell’s oil industry clients account for 12-15% of the company’s business (Dallas, Fort Worth, and Houston markets combined). Following the merger, Rook believes the 12-15% could grow to 24-30% “in very short order.”
“We merged because we compliment each other very well and expect to leverage each other’s expertise in the different markets. We felt we needed to be in Houston because of the energy opportunity...whether it’s E&P companies, whether it’s sales and service, whether it’s larger independents...we couldn’t really effectively enter that sector without being in the Houston market,” Rook continued.
Founded in 1975, Houston-based McDonald, Fox & Lund is a full-service accounting firm with a growing client base that includes privately held businesses, energy and construction companies, and healthcare organizations.
John E. McDonald has been named Houston executive partner. All of the firm’s employees, including 13 certified public accountants, will join the combined firm.
“Our Houston clients will benefit from the added depth and breadth this merger provides,” said McDonald. “We will be better positioned to serve growing businesses throughout this region of the state.”
Founded in 1950, Weaver and Tidwell currently employs 190 accountants and consultants and approximately 235 employees. The firm represents large national and international corporations, publicly and privately held businesses, nonprofit organizations, and government entities.
When asked if the accounting sector is faced with the same labor problems as the oil and gas industry, Lawhon explained there were issues, but “for a different reason.” He noted the 45% drop in college accounting majors from 1990 to 2000 due to the tech boom. “Young people thought they could make more money in corporate finance on Wall Street, the tech sector, or become lawyers,” he said. Accounting has made a comeback, however, and most all the major accounting programs were full in the fall of 2006.
Lawhon said the problem is not recruiting new graduates, but those with more experience. “Four- to six-year people are extremely rare,” Lawhon notes. These professionals are harder to come by, “not because of aging, but because of downsizing and the drop in accounting majors.”
To recruit and retain employees, especially those with experience, the company has been flexible with its employees and offers something different. Rook notes, “Our major competitors are the ‘Big Four’ accounting firms.” The goal is to differentiate themselves while still offering the ability to work on large companies, both public and private, in many different industries within public accounting.
Rook agreed: “A middle management person is very difficult to obtain. After 2 or 3 years with the Big Four, those staff begin to burn out and look for positions within the industry.” He believes in changing the work schedule and work life balance. The company believes in the office “core hours” of 10-3. Aside from that they believe in flexible schedules that allow the employees to work from home or remotely. Lawhon states, “We were voted one of the best places to work in North Texas this year. After the merger we hope to win that same honor in Houston.”
“The problem is not recruiting new graduates, but those with more experience. Four- to six-year people are extremely rare. These professionals are harder to come by, not because of aging, but because of downsizing and the drop in accounting majors.” - W.M. “Mack” Lawhon, managing partner, Weaver and Tidwell
