- Stephen G. Butler, chairman and CEO of KPMG LLP, was elected to a two-year term on the board of directors of the U.S. Chamber of Commerce. The 100-member board meets three times a year in Washington and is responsible for formulating the national body's overall policy and strategy. The group represents more than three million businesses and organizations throughout the nation.
IAFP + ICFP = FPA
- The Institute of Certified Financial Planners (ICFP) and the International Association for Financial Planning (IAFP) merged to form the Financial Planning Association (FPA). The new organization will begin operations January 1, 2000, and will follow the agenda set by its predecessors.
HRB Acquires McGladrey & Pullen
- H & R Block, Inc., and the top-10 firm, McGladrey & Pullen, LLP, signed an agreement by which Block will pay $240 million and assume $50 million in pension liabilities to acquire almost all the nonattest assets of McGladrey & Pullen. This transaction represents the largest acquisition of an accounting firm by a financial services company to date.
Minneapolis-based McGladrey & Pullen, the eighth accounting firm to be acquired by Block, is the seventh largest certified public accounting and consulting firm in the United States. In 1998, it generated approximately $300 million in services to midsize companies and tax-exempt organizations.
Block intends to integrate all the firms it has acquired, including McGladrey & Pullen, into a new company known as RSM McGladrey Inc. Block estimates that RSM McGladrey will have approximately 470 managing directors, 4,000 employees and 70 offices in the United States. McGladrey & Pullen's attest business will continue to be owned by that firm's partners. Block's individual tax return business too will remain separate from RSM McGladrey.