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Business Journals
23-04-2025
- Business
- Business Journals
Big Four firm KPMG launches law division as part of broader industry shift
By submitting your information you are agreeing to our Privacy Policy and User Agreement . A rule change in some states has opened up an avenue for accounting firms that want to diversify their offerings. Some heavyweights are already seizing the opportunity. Accounting firms looking to diversity their offerings to stand out from their competitors have a new target: law firms. A relaxation of rules in some states that allows non-lawyers to have an ownership stake in law firms is opening the door for accounting firms to open their own law firms. Audit and tax-advisory giant KPMG, for example, in February waded into the legal world with its rollout of KPMG Law US. The so-called Big Four firm said the new law firm — based in Arizona — launched with 100 clients and will help the firm deliver a wider array of services to KPMG clients. GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events Rema Serafi, vice chair of tax at KPMG, in a statement earlier this year said the firm is "uniquely positioned" to transform the delivery of legal services. She said KPMG Law will combine artificial intelligence and advanced-technology solutions with legal services. Arizona's state Supreme Court in 2021 struck down rule 5.4, which prohibited non-lawyers from owning or having a partnership with law firms. Following that decision, such partnerships between lawyers and non-lawyers in Arizona can apply for an "alternative business structure license." So far, about 114 businesses have applied for and received the license, according to a report issued earlier this year by the Committee on Alternative Business Structures. In 2024, the Arizona courts issued 51 licenses, more than double the number granted in 2023. Arizona is not the only place where rules over law-firm ownership have changed. Utah; Washington, D.C.; and the United Kingdom have all previously moved to do so, although Arizona has allowed the change on a permeant, ongoing basis. The rule change opened the door for Aprio LLC, a business advisory and accounting firm, to acquire Arizona-based Radix Law to create April Legal LLC, a full-service law firm that will work with other divisions of the company to offer a fuller suite of client services. The deal, announced in February, is expected to close in late spring. Andy Kvesic, managing partner of Radix Law, said the firm's clients are largely high net-worth individuals, many of whom are business owners in need of accounting and other advisory services. In the past, Radix would refer those clients to an outside company. He added the firm had been planning a move like this for years. "We are constantly brainstorming and figuring out ways to improve the system to benefit our clients," Kvesic said. "And it led us to this relationship." Richard Kopelman, CEO of Atlanta-based Aprio, said the firm has been acquiring new service lines since it received a strategic investment from Charlesbank Capital Partner in 2024. Since 2016, it has completed 28 separate business transactions, with nine of those in the past four months. It can now offer clients 55 different capabilities — and it's on the lookout for more. "I would describe it as building the firm of the future," Kopelman said. "And we are going to build a very big, nationally recognized professional services business that will include legal, accounting, financial, wealth, consulting and technology services." Accounting industry grapples with labor, other challenges The expansion of accounting firms into other services comes as the industry faces a number of challenges, including a lack of interest among business-school students to pursue accounting as a profession and hundreds of thousands of certified public accountants dropping out of the workforce. An AICPA report examining the industry's shortage found the average starting salaries for those graduating with a degree in accounting (although not necessarily a CPA) lagged behind every other business-school major, and salary growth did not keep up with inflation. What many people see as a shortage of accountants could actually be a symptom of reduced demand overall for at least some accounting services, as more of the profession's so-called grunt work becomes automated. Last year, consulting firm RGP released research that found 43% of financial decision-makers at companies it surveyed were investing more in end-to-end automated-accounting processes and AI tools, while 31% said they were using consulting talent and 27% said they were using interim staffing solutions. But, Kopelman said, even though both the law and accounting professions are going through a lot of change, their services have never been in higher demand. 'Entrepreneurs want to grow their businesses and want to scale their businesses locally, nationally and globally, and they need a team of experts around them to do that,' he said. Chad Cummings, a CPA, lawyer and owner of joint law and accounting firm Cummings & Cummings Law, said in an email the expansion of accounting firms into legal services is partly because accounting firms frequently encounter legal issues that require coordination with law firms. "By integrating legal services within their corporate structure, accounting firms can provide a seamless experience for clients who require both tax and legal advice, particularly in areas such as mergers and acquisitions, international tax law, estate planning, and regulatory compliance," Cummings said. He said in other countries, accounting firms have long offered legal services. Recent growth in legal and accounting business combinations is a way for firms in the United States to distinguish themselves from their competitors, Cummings said. "The ability to offer legal services allows accounting firms to compete more effectively with traditional law firms and consulting firms that provide adjacent services," Cummings said. "As more states experiment with allowing non-lawyer ownership of law firms, it is likely that additional accounting firms will follow the path of Aprio and KPMG in integrating legal services into their business models." Get more stories like this one in your inbox every day by subscribing to The National Observer newsletter.
Associated Press
12-02-2025
- Business
- Associated Press
Aprio Launches Aprio Legal, LLC and Enters into Exclusive Letter of Intent with Radix Law to Debut in Arizona Market
Collaboration marks first full-service business law firm in the United States by two Arizona ABS Program members ATLANTA, Feb. 12, 2025 /PRNewswire/ -- Aprio, the 25th largest business advisory and accounting firm in the U.S., and Radix Law, a full-service business law firm based in Arizona, announced today they have entered into an exclusive letter of intent to join together as Aprio Legal, LLC, a full-service, Alternative Business Service (ABS) law firm ready to serve entrepreneurs and business leaders with a holistic approach. The combination is expected to be finalized in late spring. This strategic collaboration with Radix Law and Aprio – together joining as Aprio Legal – will reimagine the client experience by offering entrepreneurs and business owners a one-stop destination to address both business and legal challenges with forward-thinking solutions. Clients can seamlessly and efficiently connect with experienced tax advisors, CPAs, transaction advisors, wealth advisors, and attorneys in one place, empowering them to build and grow their businesses with confidence. Aprio Legal and Radix Law, separately, are already licensed law firms by Arizona's ABS Program. Aprio received licensing approval in May 2024. Upon the completion of the combination, both entities will operate as Aprio Legal. 'We are thrilled to be the first national accounting and advisory firm to open an ABS law firm and join forces with Radix Law – a combination we know will be a powerful force in Arizona for entrepreneurs and businesses,' said Richard Kopelman, CEO of Aprio. 'At Aprio, we are focused on our commitment to building the firm of the future and reimagining the client experience. Aprio Legal is an important part of that commitment. Our firms are both like-minded and entrepreneurial, and together as Aprio Legal we will continue to pioneer the legal profession.' Radix Law, approved by the Arizona Supreme Court in 2021, is the first ABS law firm in the U.S. to operate as a multi-lawyer, full-service law firm, combining both lawyer and non-lawyer owners. The firm includes 15 experienced lawyers who provide a full suite of legal services to clients, including estate planning, corporate transactions, commercial litigation, real estate, and business law. 'This is an incredible leap forward in the evolution of Radix Law and an exciting time for our business as we join forces with Aprio to establish Aprio Legal,' said Andy Kvesic, CEO and Managing Partner of Radix Law. 'Our clients are our priority, and with Aprio Legal, we will have the added resources to deliver an even more personalized and comprehensive approach to help them grow.' Over the coming months, the two entities will work together to determine the optimal structure for collaboration that honors the intent and rules of the Arizona ABS program. About Aprio Legal Radix Law + Aprio – joining together as Aprio Legal - will reimagine the client experience by offering entrepreneurs and business owners a one-stop destination to power their success. They can seamlessly connect with experienced tax advisors, CPAs, transaction advisors, wealth advisors, and attorneys in one place, empowering them to build and grow their businesses with confidence. Aprio Legal and Radix Law, separately, are already licensed law firms by the Alternative Business Structure Program. About Radix Law Radix Law, located in Scottsdale, Arizona, is the first multi-lawyer, full-service business law firm in the U.S. that was approved for an ABS license. Radix Law opened in 2021 and is now widely recognized as a firm that is pioneering the legal profession. With a deeply experienced team of attorneys and business professionals driven by an entrepreneurial spirit, Radix Law combines a personalized client experience with comprehensive, business-focused legal counsel with an eye towards providing value. About Aprio Aprio is the brand name under which Aprio, LLP, and Aprio Advisory Group, LLC, deliver professional services. Since 1952, clients throughout the U.S. and across more than 50 countries have trusted Aprio for guidance on how to achieve what's next. As a premier business advisory and accounting firm, Aprio Advisory Group, LLC, delivers advisory, tax, managed and private client services to build value, drive growth, manage risk, and protect wealth, and Aprio, LLP, provides audit and attest services. With proven experience and genuine care, Aprio serves individuals, entrepreneurs, and businesses, from promising startups to market leaders alike. Aprio has grown to 2,000+ team members providing solutions to clients in industries including Manufacturing and Distribution, Non-Profit and Education, Professional Services, Real Estate, Construction, Restaurant, Franchise & Hospitality, Government Contracting, and Technology and Blockchain.
