BETHESDA, MD-Reznick Group PC, and J.H. Cohn LLP are merging to create what will likely shape up to be an alternative to one of the Big Four accounting firms. Both companies are among the top-20 ranked accounting, tax and consulting firms in the US. Together they will become the 11th largest firm in the country with more than 2,000 employees, 25 offices and combined revenues of more than $450 million.

"This move allows us to double our talent and deploy even more resources to areas important to our clients," David Kessler, co-managing principal of Reznick's Bethesda office and chair of the firm's national commercial real estate practice, tells GlobeSt.com.

For CRE that will mean several new or expanded service offerings, Kessler says, including a greater focus on REITs. That, however, is only the start. The two firms have complementary services, Kessler says, so clients will definitely notice an expansion of offerings: "We're 70% real estate and serve the entire spectrum of the industry from every different property type to all levels of the capital stack."

By comparison, Cohn's footprint in the industry, Kessler notes, is about 10%. On the other hand, Reznick has a relatively small presence in New York City while Cohn has about 200 employees there. Among the service areas Kessler expects to see enhanced are the consulting and due-diligence work provided to institutional investors, private equity funds and (of course) REITs, via its now larger New York presence.

But in many respects, both firms are equal. "We both have Public Company Accounting Oversight Board certification and will be able to expand our service offerings to public companies," he says.

Principals and partners of both firms have agreed to the merger and its terms. Pending final approvals, the marriage is expected to take place in September.