One on One with UHY Advisors' Michael Mahoney

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One on One with UHY Advisors' Michael Mahoney

UHY Advisors recently named managing director Michael Mahoney as the President and CEO UHY Advisors NY, which includes offices in Manhattan, Rye Brook, Albany and New Haven, Conn. The firm was recently named the 20th largest professional services firm in the country by Accounting Today. Some 175 of the national firm’s 1,200 employees work out of the New York area. Mahoney spoke with Consulting recently about plans for continuing the firm’s growth, a bullish future on its China group, and the year-end explosion of M&A activity.

Consulting: What are your plans for continued growth in the Northeast?

Mahoney: Our plans for the Northeast would really emulate our plans for the company as a whole: to grow organically as well as through strategic acquisitions. In the past few years we’ve added partner-level individuals to strengthen our core audit and tax services as well as build out niche consulting expertise in transactional services, trust and estate planning, IT consulting, valuation services and probably our biggest specialty in the northeast which is our China group, through which we are committed to servicing the greater China region. We also believe there are ample opportunities to add quality, smaller firms. The accounting profession changes so rapidly now that many smaller firms are struggling to keep up and looking to join a larger platform which can provide them with the infrastructure and technical expertise they need to stay successful.

Consulting: What are your growth projections?

Mahoney: I think as far as our northeast operations over the next few years we’d like get that number somewhere in the 350 to 400 number, probably double our size. There are a number of smaller practices out there and there has been much activity in the M&A arena in the accounting industry. It’s harder and harder for a that sole proprietor to maintain an audit practice today just because the regulatory guidance is so vast.


Consulting: What are you finding clients are demanding these days?

Mahoney: Our transactional services group has been extremely busy. Through that group we assist investors by performing financial due diligence on their behalf, analyzing tax structures, performing purchase price valuation services as well as many other services inherent in bringing two companies together. As we reach the end of 2012, this area has been extremely busy as most potential sellers would like to see their transactions close prior to the close of 2012 so they can take advantage of the current capital gains tax rates. I can’t remember a time when I’ve seen this much merger and acquisition activity as I have in the last 30 days. You just wonder if it’s a short-term explosion and it disappears when we get to the other side, hopefully not.

Consulting: How is the whole “fiscal cliff” situation weighing on the industry and what are the potential ramifications.

Mahoney: Right now it’s kind of a wait and see—no one knows what’s going to happen. My guess is there will be a short-term compromise, I don’t think you’re going to get a full-time fix by the end of 2012. There will probably be something that comes together which extends some of the benefits and expiring tax cuts, but it’s going to be a short term solution to a longer term problem that needs to be solved.

Consulting: What consulting opportunities are on the horizon?

Mahoney: I think what we’re going to see in early 2013 as a result of all the mergers and acquisition activity we see now and everybody trying to run to the finish line by the end of the year. From a valuation standpoint and valuation services all of those transactions you’ll now have to first quarter to 6 months of 2013 there will be ample opportunities for us to provide valuation consulting services. The other thing we see as a very positive opportunity for us is our China group. Specializes in company’s inbound and outbound investment activities involving the greater China region. We have a very specialized and talented group of professionals who work very closely with both US companies looking to invest in China, but more specifically what’s evolved in a new generation of Chinese-born but U.S.-educated entrepreneurs looking to invest in the United States. This area has been providing many new exciting areas for us. Looking forward I think the opportunity for growing our consulting services is very strong. In recent years many of our clients and companies have addressed the slowed economy by cutting costs, but many have reached the point where there’s very little left to cut. So they’re really looking for best practices and reaching out to professional advisors to help identify them. That’s going to be a real opportunity to capitalize on in 2013 and going forward.

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