Frost PLLC of Little Rock and Moore Stephens Wurth Frazer & Torbet LLP of California have called of a merger announced last year, saying "the long-term objectives for the firms aren't consistent enough to justify moving forward together."
The merger was announced Nov. 18, 2009. At the time, the two firms said the deal would create a national firm among the top 50 accounting firms in the U.S., ranked by gross revenue.
In a statement, Frost managing partner Dan Peregrin noted that the firms' partners have been friends "for years" and believed they could build their businesses as one firm.
"Our combination agreement called for a trial period, which began on Jan. 1, 2010, for us to 'test the waters,' and we have been operating our businesses under the Frazer Frost LLP name during this time," he said.
"Also, during these months, we have discovered that the long-term objectives for the firms aren't consistent enough to justify moving forward together. Although this was the basis for our partners' vote to not consummate the combination, we have nothing but best wishes for their firm in the future."
Moore Stephens Wurth Frazer & Torbet has three offices in California. Frost has offices in Arkansas and North Carolina. The merged firm was to be known as Frazer Frost LLP.
Last year's announcement came on the heels of another merger by Frost, the state's second-largest accounting firm, which acquired Ervin & Co. CPAs PA of Fayetteville.
