Mitchell & Titus Joins Ernst & Young: Diversity is Good Business

Mitchell & Titus, the largest minority-owned accounting firm in the US will join Ernst & Young Global as a member firm. M & T was formed in 1974 and has 125 employees. Exact revenue was not disclosed, but an an average of say $200,000 per employee, this is a $25 million dollar firm. Typically, a large Big Four firm like Ernst & Young would annex the clients, employees and relationships of the firm it buys and absorb into its infrastructure. But Mitchell & Titus will continue as its own entity and maintain its own clients and billing structure. It will become the second US member firm in the global E&Y network, typically there is only one firm in each country in the global partnership. We can only conjecture the cause for this unusual arrangement....did E&Y want to promote diversity in its ranks, or is there economic value in maintaining M&T as a separate entity, or the prevailing conditions are such that an amalgamation between a minority-owned busines and a large global firm is not entire possible. Or is it setting a trend in the industry where newly acquired firms (with clout of their own) will continue to operate under their own umbrellas. M&T is apparently going to focus on its own client base, which is likely also minority owned businesses. Letting this situation continue is probably to Ernst & Young's advantage. Minority owned businesses are growing strong and plentiful and serving them with a minority-owned firm but with global resources is probably good business sense. Diversity is no longer a buzzword but an impactful business phenomenon. Diversity hiring is growing and is 36% of experienced hires, according to E&Y. We will keep monitoring such acqusitions to see if the other Big Four are taking the same route. Here is the Press Release Source: Ernst & Young Global Limited Mitchell & Titus to Join Ernst & Young Global as a Member FirmThursday June 15, 7:00 am ET NEW YORK, June 15 /PRNewswire/ -- Ernst & Young Global Limited announced today that Mitchell & Titus, LLP, the nation's largest minority-owned accounting firm, is expected to join as a member firm. The announcement was made at the National Association of Black Accountants annual convention, taking place this week in Hollywood, Fla. The global Ernst & Young organization consists of separate member firms in 140 countries, including Ernst & Young LLP in the United States. Mitchell & Titus will maintain its brand name and continue to operate under its current ownership through its offices in New York, Philadelphia, Baltimore, Rutherford, New Jersey and Washington, DC. Mitchell & Titus's membership in the global Ernst & Young organization is expected to commence by October 2006, pending the resolution of professional independence related and other outstanding matters. Founded in 1974, Mitchell & Titus is currently ranked among the 100 largest accounting firms in the United States. With a staff of more than 125 people, the firm provides auditing, tax and advisory services for Fortune 1000 companies, entrepreneurial enterprises, not-for-profit organizations, government entities, and high net worth individuals. Mitchell & Titus intends to remain a minority-owned business. "From where we started, more than 30 years ago, it would have been hard to expect that we would be where we are as a firm today," said Bert N. Mitchell, Chairman and CEO of Mitchell & Titus. "Despite some obstacles, we built a firm of quality that has been in a continuum of growth. By joining as a member firm of Ernst & Young Global Limited, we believe we are better positioned to continue this growth and to provide clients a unique option of a minority-owned firm that can draw upon the vast resources of a world class professional services organization. In addition, Ernst & Young shares our passion for quality and integrity in client engagements, as well as a desire to enhance opportunities for minorities seeking a career in our profession. We are excited for the opportunities that lie ahead for us in the future." "Bert Mitchell is among the true legends of the accounting profession, and he and his team have established one of the most respected firms in the country," said James S. Turley, Chairman and CEO of Ernst & Young Global Limited. "It will be a privilege to have Mitchell & Titus as part of the global Ernst & Young organization, and we hope this arrangement demonstrates in a very real way our mutual commitment to promote diversity in the accounting profession, while maintaining a laser-like focus on quality in the delivery of client services," Turley added. As the two client-serving members of the global Ernst & Young organization operating in the United States, Mitchell & Titus and Ernst & Young LLP expect to work on some client engagements jointly, in addition to providing business referrals, where appropriate. The arrangement enables Mitchell & Titus and Ernst & Young LLP to focus on their respective preferred client segments, with the result that together the firms will provide broad-based, consistent, seamless quality service throughout the market. As a member firm of the global Ernst & Young organization, Mitchell & Titus will follow the organization's quality and risk management and independence procedures, as well as have access to leading technological resources and the collective knowledge base of the other member firms around the world. However, as a separate firm within the global Ernst & Young organization, Mitchell & Titus will maintain its own billing and fee structure. A chronicler of the lack of diversity in the accounting profession throughout his 40 year career, Mitchell notes that 30 years ago fewer than two out of every thousand CPAs in the United States were African American. Ten years ago only one percent of CPAs were African American. And while progress has been made in minority hiring, according to a 2004 study by the American Institute of Certified Public Accountants 23 percent of accountants hired were minorities (up from 18 percent in 2003); the total number of African-American accountants hired in 2004 was only 3 percent (down from 5 percent in 2003). For the past 8 years, Ernst & Young LLP, the U.S. client-serving member firm of Ernst & Young Global Limited, has been named by Fortune magazine as one of the "100 Best Companies to Work For." Minorities currently represent more than 24 percent of all client-serving Ernst & Young LLP staff. Minority hiring on campuses is at an all time high, accounting for 28 percent of all off-campus hires at Ernst & Young LLP, while minorities currently account for 36 percent of experienced hires. African Americans currently comprise 6 percent of all staff at Ernst & Young LLP, with 48 percent in client serving roles. In addition to significant investments in mentoring, networking and career development opportunities for minority professionals at the firm, over the past 10 years Ernst & Young LLP, along with the Ernst & Young Foundation, has contributed more than $6 million to minority business students and their organizations to help increase the pool of minority applicants and new hires for the profession. Recognizing the firm's commitment to promoting diversity, Black Collegian magazine named Ernst & Young LLP one of the top 100 Diversity Companies for the fifth consecutive year. Ernst & Young LLP also was named one of the top 100 companies for Hispanic professionals by Hispanic Magazine for the second year in a row. Mitchell has served as president of the New York State Society of Certified Public Accountants, as well as chairman of the New York State Board of Accountancy. In addition, he has served as a member of the board and the Governing Council of the American Institute of Certified Public Accountants (AICPA) and as president of the Accountants Club of America. A co-founder and chairman of the National Association of Minority CPA Firms, Mitchell has also served on the Commissioner's Advisory Group of the Internal Revenue Service. He has received numerous honors and awards, including four honorary doctorate degrees and the AICPA's Gold Medal. About Mitchell & Titus Mitchell & Titus, LLP is a preeminent provider of auditing, accounting, tax, and business advisory services. Since the firm's founding in 1974 Mitchell & Titus has become the nation's largest minority-owned accounting firm, ranking among the top 100 of more than 50,000 accounting firms in the United States. The growth and success of Mitchell & Titus is directly linked to its commitment to excellence and quality of services. With an ever growing number of professionals in its New York City, Rutherford, NJ; Philadelphia; Baltimore; and Washington, DC offices. Mitchell & Titus assists clients throughout the United States including Fortune 1000 companies, entrepreneurial enterprises, not-for-profit organizations, government entities, and high net worth individuals who choose Mitchell & Titus for its knowledgeable, experienced and responsive team. About Ernst & Young Global Limited Ernst & Young, a global leader in professional services, is committed to restoring the public's trust in professional services firms and in the quality of financial reporting. Its member firms' 107,000 people in 140 countries pursue the highest levels of integrity, quality, and professionalism in providing a range of sophisticated services centered on our core competencies of auditing, accounting, tax, and transactions. Further information about Ernst & Young and its approach to a variety of business issues can be found at www.ey.com/perspectives. As used in this paragraph, Ernst & Young refers to the organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited does not provide services to clients. Ernst & Young LLP, a Delaware limited liability partnership, is the U.S. client-serving member firm of Ernst & Young Global Limited. Article provided by www.big4.com