WILMINGTON — Cover & Rossiter, one of Wilmington’s oldest full-service accounting firms will be merging with the Bonadio Group, granting the largest professional services firm in upstate New York access to the Mid-Atlantic Region.
Under terms of the deal, the 85-year-old Cover & Rossiter will be rebranded under the Bonadio Group with all staff members making the transition to the new brand. That also includes managing director Marie Holliday, as well as three principal executives, two directors and six team leaders. The deal is expected to close on Dec. 1.
Cover & Rossiter offers audit, tax and trust services as well as financial planning to clients as well as accounting services to small to medium businesses. Holliday said that joining Bonadio Group is a natural progression for the firm to evolve as accounting firms faced headwinds during the COVID-19 pandemic. When Paycheck Protection Program (PPP) loans and Emergency Injury Disaster loans (EDIL) were issued to thousands of businesses in the state, Cover & Rossiter had to quickly rise to meet the needs to ensure the paperwork was on point.
“When the pandemic hit, the pressure was really on and we had to rapidly pivot to deal with those programs and, as a smaller firm, we didn’t necessarily have the bandwidth,” Holliday told the Delaware Business Times. “I also feel there’s a shortage in accountants, as we compete against banks and trust companies, so it got harder over time to keep talent. With artificial intelligence coming in, it became clear we couldn’t handle this on our own.”
“So we thought, ‘We have to go big or go home,’” she continued.
In comparison, the Bonadio Group is certainly big. The New York-based firm maintains 10 offices throughout the country —namely in the Northeast and in Dallas — and has about 1,000 staff around the world offering accounting, assurance, tax and consulting and advisory services. While the Bonadio Group has long held clients in the Mid-Atlantic Region, CEO and Managing Partner Bruce Zicari said that this deal will help bring on well-respected talent with a strong book of business.
Cover & Rossiter interviewed several potential partners before making its decision, but it was only when a broker had connected the company with the Bonadio Group when things started to click.
“One of the things that was important was someone who didn’t have a Mid-Atlantic presence because I wanted us to feel like there was value in our area,” Holliday said. “We’re turning away engagements because we don’t have the ability to service them, so I do think there’s tremendous opportunity not only in Delaware but in regions across state lines.”
“Cover & Rossiter has been long entrenched in the region, and they have a lot of contacts. The partner group is pretty well respected,” Zicari told DBT. “I think it’s a springboard, not only to Delaware but to Maryland, New Jersey and Pennsylvania. With their reputation, expertise and contacts and our resources and additional services, we see that we have the same culture and desire to grow. We’re pretty excited about it.”
When Cover & Rossiter were first considering a merger, Holliday said it was important to find a cultural fit that would also offer services that many clients are looking for. Instead of referring to cost segregation and tax studies, or financial planning, that can also be taken in-house.
The Bonadio Group has grown by 10 to 15% each year, and has acquired at least 20 other smaller accounting firms. The company had its eyes set on the mid-Atlantic region for a while, but considered many different states as its entry point. But Zicari added that the Bonadio Group also heavily considers culture before making an offer to another firm.
“Cover & Rossiter was the first firm out of many we talked to that had that cultural fit and a strong leadership team we felt that could help us build out the market. And the Mid-Atlantic region is a good market – and Delaware is so central located in the region, you can be in several states within minutes,” he said.
If the merger goes through as planned, Cover & Rossiter staff will remain at its office at Little Falls as the lease is expected to expire in 2030. Under the Bonadio Group name, Holliday said there was also room to add at least 20 people in the office.
