A Hauppauge-based accounting firm has struck a deal to merge with a national company, in a transaction scheduled to close on July 1.
The firm, Charles A. Barragato & Co. LLP, has agreed to merge with BDO USA LLP, one of the nation’s largest providers of accounting, financial advisory, tax and consulting services, the two companies announced Tuesday.
Barragato & Co. has a staff of 38, including six partners, in its Hauppauge and Manhattan offices. Those offices are expected to close by the end of the year, and the staff will move into BDO’s Melville and Manhattan offices.
The merger gives BDO more than 100 employees on Long Island. BDO has projected revenues of $1.2 billion nationally for the fiscal year ending in June, and $1 billion for the previous fiscal year, a spokesman said.
Barragato & Co. was founded in 1998, and since 2009 it has been a member of BDO Alliance USA, an association of independent professional services firms.
The merger “gives us more critical mass,” said Chuck Barragato, managing partner of the local firm. “We were principally a New York metropolitan area practice, but now we will be able to work with our BDO colleagues on a much broader level, and it will also open up opportunities for our people.”
Barragato & Co.’s practice serves Long Island health care businesses and hospitals such as Mineola-based Winthrop-University Hospital, as well as family offices, real estate developers and investors, and private clients with a typical net worth of about $25 million, including entertainers and athletes.
At BDO, Barragato will become office managing partner for BDO USA’s Long Island tax practice, and he also expects to develop BDO’s private client services practice in the Northeast.
He will take over from Randy Schwartzman, who has become regional managing partner for the Northeast tax practice, in addition to continuing to serve his Long Island clients.
The merger will help BDO increase “our representation of clientele in the high net-worth and family office space,” Wayne Berson, chief executive of BDO USA, said in a news release. BDO USA has expanded into 21 new cities in the last four years, the company said in the release.