Accounting firm Porte Brown expands client base
Elk Grove Village-based accounting firm Porte Brown LLC is growing, despite a choppy economy, after notching its third acquisition in two years with the purchase of Mount Prospect-based M.O. Portanova & Associates Ltd.
Management says Porte Brown's solid growth makes it an attractive partner for firms looking to be bought out. Porte Brown prepared more than 6,000 tax returns last year and its $8 million in revenues was a 20 percent increase over 2006.
"It's difficult for a smaller firm to keep up with all the (tax) regulations," said Bruce G. Jones, one of the firm's seven partners. "It just makes sense for them, in many cases, to go to a firm that can offer more services for their clients."
The company's newest merger partner, M.O. Portanova & Associates, was founded by Mario O. Portanova in 1986 in Deerfield, and relocated to Mount Prospect in 1997. The firm specializes in accounting services for businesses in construction, retail, manufacturing and distribution.
Accounting firms Menconi & Associates and Mengel Mulvihill & Associates Ltd. joined Porte Brown in 2006.
Porte Brown was founded in Chicago by Jim Porte in 1946. The company moved to Elk Grove Village in 1974, and 18 years later moved to its present location on Oakton Street. With acquisitions, the firm has a total staff of 55, including 40 accountants, 23 of whom are certified public accountants.
In addition to Porte Brown's more traditional accounting services, the 62-year-old firm has a computer consulting division, Porte Brown Technology Solutions, which helps companies automate their business processes.
Porte Brown has also grown thanks to its business valuation services, which have gotten a boost from the baby boom generation now passing 60 and thinking about retirement.
"There's been a lot of activity with people looking to buy and sell businesses because of the baby boomers' retiring," said Senior Manager Jeff R. Smiejek.
"There's a whole list of other reasons why you could have a [valuation], but I'd say estate planning and buying and selling businesses are the two biggest ones we're seeing," he added.
But at the core of Porte Brown's services is the accounting.
"We've always considered ourselves to be tax experts," Jones said.
Though the company has clients, both individuals and companies, in multiple states, management says the bulk of the firm's customers are in the Chicago area.
Bonnie Bittner, who runs an AlphaGraphics franchise in Wood Dale with her son Jeff Bittner, is a long-time Porte Brown client. The Bittner family has worked with Porte Brown for three generations and almost 41 years.
"My husband's grandfather started out with them when they opened up -- over 60 years we've been with them," Bittner said.
She said her husband began using Porte Brown for his personal tax accounting as soon as he began filing, and that it was a "natural progression" to use the accounting firm for their business accounting needs.
Porte Brown's management also credits its growth to its practice of working on-site with clients.
"There's so much technology now, we could work somewhere across the world," sales manager Chris Zdunich said. "We believe in being on-site, face-to-face with our clients."
Bittner agreed that Porte Brown's on-site services have been important to AlphaGraphics, and credited Partner Tom Porte, founder Jim Porte's son, with helping them start their printing company.
"He worked with Jeff on what to purchase … and helped us with all the things to keep in mind so we didn't overextend ourselves," Bittner said.
Jones said that seeing clients on-site throughout the year helps Porte Brown to file more than 98 percent of its customers' tax returns on time, rather than filing for extensions.
"We find it's in the client's best interest to get it done and move forward," he said.
Business profile
Company: Porte Brown LLC, accounting services for individuals and businesses, including estate planning, business valuations, government compliance and auditing.
Location: 845 Oakton St., Elk Grove Village
Founded: By Jim Porte in Chicago, 1946
Revenues: $8 million in 2007, up 20 percent over 2006
Employees: 55, including 40 accountants, 23 of whom are CPAs; 7 partners