Download - Elliott Davis Decosimo 2015 Report to Clients & Friends

R E P O R T T O C L I E N T S A N D F R I E N D S

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OUR EXPEDITION FORWARDR E P O R T T O C L I E N T S & F R I E N D S


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C O N T E N T S

TABLE OF CONTENTS

Letter from Rick Davis ...............................03

High Performance

A journey, not a destination ..............04

Our Landscape ...........................................06

The Right Tools for the Journey

A focus on specialization ...................08

Making a Positive Impact on our Clients

Case studies ........................................11

Strengthening our Crew ............................14

Office Locations .........................................18


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OUR EXPEDITION FORWARD

FIRM MANAGING SHAREHOLDER

CLIENTS AND FRIENDS,I welcome you to our 2015 Report to Clients and Friends. This has

been an incredible year of growth for our firm and it has afforded

us the opportunity to reflect on our true purpose. Our mission

is to make a positive impact on our clients, our people and our

communities. And as you read this report, I think you will see that

although we are a much larger firm, we continue to build on who

we are and remain true to our mission.

We consistently invest in our firm to meet the growing needs of

our clients. This past year we extended our footprint, expanded

our specializations and services, as well as attained and developed

outstanding talent. As you read on you will find reflections on our

growth and stories that display our commitment to our mission

of guiding our clients, our people and our communities toward

greater success.

I am proud of our firm’s progress and I believe we are positioned

for a bright future. We could not do this without your support and

trust, and for that we are grateful. Thank you.

Sincerely,


A CONFLUENCE OF STRENGTH ANDKNOWLEDGE

D uring the past year Elliott Davis Decosimo enjoyed

historical levels of growth. The merger between Elliott

Davis and Decosimo created one of the largest regional

accounti ng and business advisory fi rms in the nati on.

The combined footprint includes offi ces in Alabama,

Georgia, North Carolina, Ohio, South Carolina, Tennessee

and Virginia. In additi on, the fi rm signifi cantly increased

headcount through organic growth: Since 2012 and prior

to the merger, legacy Elliott Davis increased headcount by

40 percent from organic growth alone by placing a focus on

professional development and recruitment.

NEW LEVELSOF CLASSIFICATION

W ith annual revenues in excess of $109 million for

2014 and more than 850 professionals across a

16-offi ce network, the combined fi rm reached a new level

of disti ncti on within the accounti ng industry. Elliott Davis

Decosimo was recognized as the fi rm with the highest

level of annual revenue growth for 2014. Of the fi rms

comprising Accounti ng Today’s listi ngs for year-over-year

growth in annual revenue, Elliott Davis Decosimo ranked

fi rst in the country with a 70 percent growth rate in 2014

and was only one of three fi rms on the list to exceed

a growth rate of 50 percent. This aff ords the fi rm the

opportunity to att ract top talent and deliver a broader

range of services across our footprint.

H I G H P E R F O R M A N C E A JOURNEY, NOT A DESTINATION


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GROWING STRONGERAND DEEPER

O ne immediate benefi t of our merger was the ability

to create value for our clients by broadening our

service off erings. The synergy of the two fi rms maximized

the breadth and depth of specialty off erings in a variety

of industry and specialty areas such as Healthcare,

Manufacturing and Distributi on, Private Equity and Real

Estate. We also added depth of experience in core services

such as Audit, Tax, Internati onal, Liti gati on Support, Estate

Planning, Business Valuati on and Transacti on Advisory.

“ While we are

excited about our

new ranking, we are

not seeking growth

simply to be larger.”

R I C K D AV I S , F I R M M A N A G I N G S H A R E H O L D E R

“ Strategic growth is a

priority for our fi rm.

As our clients’ needs

continue to grow, so

have the capabilities

and breadth of

expertise we can

bring to them.”


Banking and Financial Services

Closely Held Business

Construction

Dentists and Dental Practices

Education Services

Entertainment and Sports

Government

Healthcare

Investment Companies

Manufacturing and Distribution

Not-for-Profit

Private Equity Groupsand Portfolio Companies

Professional Services

Real Estate

Technology and Life Sciences

TEAMApproximately 850 people, including almost 100 shareholders.

Columbia, SC

Augusta, GA

Charlotte, NC

Charleston, SC

Raleigh, NC

Richmond, VA

Knoxville, TN

Chattanooga, TN

Nashville, TN

Memphis, TNHuntsville, AL

Dalton, GA

Atlanta, GA

Greenville, SC

Greenwood, SC

Cincinnati, OH

EXPANDED FOOTPRINTWe go where our clients need us.

We have 16 offices across seven states.

Banking and Financial Services

Closely Held Business

Dentists and Dental Practices

Education Services

Entertainment and Sports

Investment Companies

Manufacturing and Distribution

Not-for-Profit

Private Equity Groupsand Portfolio Companies

Professional ServicesKnoxville, TNKnoxville, TNKnoxville, TNKnoxville, TN

Chattanooga, TN

Nashville, TN

Memphis, TNMemphis, TNMemphis, TNMemphis, TNMemphis, TNMemphis, TNHuntsville, ALHuntsville, ALHuntsville, ALHuntsville, AL

Dalton, GADalton, GADalton, GADalton, GA

Atlanta, GAAtlanta, GAAtlanta, GAAtlanta, GA

Greenville, SC

Greenwood, SCGreenwood, SCGreenwood, SCGreenwood, SC

Cincinnati, OH

SPECIALTIESWe understand our clients.

We have 15 industry-experienced teams. INTERNATIONAL REACHWe are a member of Moore Stephens,

one of the world’s largest CPA firm

associations with resources in every

major market around the globe.

OUR LANDSCAPE

GROWTHRanked #1 by as the

firm with the highest level of annual

revenue growth in the U.S. (2014-15)

Accounting Today

INTERNATIONAL REACHINTERNATIONAL REACHINTERNATIONAL REACHINTERNATIONAL REACHWe are a member of Moore Stephens, We are a member of Moore Stephens,

one of the world’s largest CPA firmone of the world’s largest CPA firm

associations with resources in everyassociations with resources in every

major market around the globe.major market around the globe.


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O U R M I S S I O NTo make a positive impact on our clients,

our people and our communities.


O ur goal is to add value and help

our clients reach their business

and financial objectives. Navigating

through unpredictable waters can be

difficult for any business or individual,

and each industry has unique

challenges of its own. That is why

having the right gear – the knowledge

and the experience to navigate the

complexities of a particular industry

or personal financial landscape - is

fundamental to helping our clients

achieve success.

Industries such as Banking and Financial

Services, Entertainment and Sports and

Manufacturing and Distribution are all

very different from one another. Our

industry professionals understand the

dynamic issues unique to their

particular specialty.

Our Banking and Financial Services

professionals know firsthand that one

size does not fit all. More than 120

financial institutions, large and small,

depend on our Financial Services

team for personal attention, industry

experience and technical expertise.

THE RIGHT TOOLS FOR THE JOURNEY A FOCUS ON SPECIALIZATION

“ The key to our successful specialization has been a direct result of tuning in to our clients’ business needs and then strategically developing our talent and resources to

meet those needs.” R I C K D AV I S , F I R M M A N A G I N G S H A R E H O L D E R


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“ Our group includes specialists in niche areas such as

SEC registrants, information technology and acquired

loan valuation. We have the industry expertise and

understanding to bring the right team together in order

to meet our clients’ needs.”

BARBARA RUSHING, BANKING AND FINANCIAL SERVICES SHAREHOLDER


V aden Group, an Elliott Davis Decosimo practice,

serves individuals, S-corps and LLC’s throughout

a broad spectrum of businesses including the

entertainment and sports industries. Creative

professionals – actors, athletes, musicians, writers,

managers, agents, executives – do not need distractions

from the day-to-day aspects of their business. Their

needs are unique: royalties, tour expenses, budgeting

and numerous other business and financial challenges.

Vaden Group works with creative professionals to come

up with solutions specific to their business.

“ Whether it is a royalty examination,

a special purchase or a contract

negotiation, we find the solution

so our clients can maintain their

creative focus.”

M I K E VA D E N , E N T E R TA I N M E N T A N D S P O R T S P R A C T I C E L E A D E R

The unique experience gained by serving a particular

industry allows our specialists to take best practices

and lessons learned from one engagement to the

next. Our specialists hit the ground running: They

speak the same language as their clients and they

bring technical skills specific to the industry. We also

know how important it is to stay current on industry

trends and up-to-date on the economics, technology

and operations of an industry.

“ We hold annual M&D training

workshops where we invite

several manufacturing executives

to educate us about the current

challenges and opportunities they

face in the industry.”

J O H N O T T E N , MANUFACTURING AND DISTRIBUTION PRACTICE LEADER

“ This is especially important

in developing the skills of

younger staff to provide them

with the training they need to

be a specialist in their field and

better serve our clients.”

Moving forward we will continue to strengthen

our core services and specialty teams. But most

importantly, we will continue to listen to our clients

to understand their needs and execute our role in

providing excellent client service.


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When two publicly-traded

fi nancial insti tuti ons began

the work of combining their operati ons

into a fi rm that would create North

Carolina’s largest community bank, the

Elliott Davis Decosimo Financial Services

team answered the call. Completed in

September 2014, the merger brought

together two organizati ons with

combined assets of $4 billion.

Elliott Davis Decosimo previously

provided tax services to the acquiring

organizati on, and as the merger

began to move forward, the two

banks identi fi ed the need for an

outside provider to help with complex

accounti ng issues, including those

related to the loans held by each of the

banks. The acquiring bank was acti ve

in the acquisiti on market in the three

years prior to the merger and one of

the key assignments for the Financial

Services team became integrati ng

previous acquisiti ons as well as the

newly acquired bank into one

combined enti ty.

The team facilitated the valuati on

process for the merger using ValuCast,

a proprietary acquired loan valuati on

soluti on developed by Elliott Davis

Decosimo. The approach assisted

the merging enti ti es in gathering and

analyzing the proper data as well as

providing a platf orm for communicati ng

the results with key stakeholders.

While the waters can become

somewhat murky following a merger

of this size, the Financial Services

team was able to provide the best

available tool to clearly view results

from the combined fi nancials and

other key performance indicators. By

demonstrati ng the fi rm’s ability to work

eff ecti vely and effi ciently with both

banks, Elliott Davis Decosimo has been

aff orded the opportunity to look within

the merged fi nancial insti tuti on to

examine other areas where the fi rm can

conti nue to add value.

PLAYING A KEY ROLE IN LARGE COMMUNITY BANK MERGER

Issue: Merger of two fi nancial institutions | Service: ValuCast™ a Valuation Solution

MAKING A POSITIVE IMPACTON OUR CLIENTS

C A S E S T U D I E S

Our ValuCast™ tool has been used for bank acquisiti ons of more than $25 billion in total assets.


DON’T LET YOUR BUSINESS GO TO THE CLEANERS

Issue: Suspicion of embezzled funds | Service: Fraud and Forensic Accounting

Elliott Davis Decosimo was

hired by a law firm on behalf

of their client, a mid-sized industrial

laundry service provider, to perform

a forensic accounting investigation.

The board of directors of the laundry

company had reason to suspect the

former controller had embezzled

funds. Based on initial findings of the

new controller, the board suspected

approximately $150 to $200 thousand

had been misappropriated.

Our investigation proved they were

correct regarding the embezzlement,

but the amount was underestimated.

Our examination resulted in the

identification of over $1.1 million

in embezzled funds over a six-year

period. Procedures for this project

included a detailed examination of

the company’s bank accounts and

comparison to the general ledger

detail. We determined the method

the previous controller had used

to transfer the funds to a personal

bank account and subsequently

conceal the transaction by adjusting

journal entries. Once we determined

the method, we were quickly

able to establish the total dollars

misappropriated for the period

under examination.

Our resulting reports for this

engagement were provided to

the county sheriff’s office, and

consequently to the United States

Secret Service. Due to the nature

of the misappropriation (wire fraud),

the former controller will most likely

be indicted in federal criminal court.

Civil charges are also likely to be filed.


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An Academy of Country

Music Award-winning artist

was filling up venues during multi-

city tours. Historically, concert tours

are a major source of income for

artists. However, this rising country

music star was losing money and her

concerts were in the red. Financially,

she was singing the blues.

In an effort to realize a profit margin,

the band’s manager referred the

artist to the Elliott Davis Decosimo

Entertainment and Sports Practice,

Vaden Group. Our entertainment

specialists evaluated financial

statements, tax returns, contracts

and tour operations and were able to

offer options for streamlining costs

without compromising the quality of

the concert experience for her fans.

They also led an effort to revamp the

artist’s original merchandise

contract, which wasn’t producing

adequate income.

Vaden Group’s review of the road

operation discovered that the tour

was carrying too many support

personnel – with costs that included

meals and hotel expenses in addition

to wages. Recommended reductions

allowed the tour to run with one

bus instead of two, and changes in

logistics established shorter trips

between venues to eliminate the

multiple-driver requirements for

trips of more than 600 miles.

With the changes now in place, this

artist has a profitable tour. She also

expects to increase merchandise net

revenue by 10 to 12 percent during

2015. This rising star now sings a

much happier tune.

A RISING MUSIC STAR CHANGES HER TUNE

Issue: Financial loss on tours | Solutions: Business Management,

Concert Tour Accounting, Contract Negotiation


MAKING A POSITIVE IMPACT ON OUR PEOPLE

Over the past year, Elliott Davis

Decosimo earned several honors that

served as a reflection of the firm’s

commitment to its professionals.

Carolina Parenting, Inc. named Elliott

Davis Decosimo one of the top 50

family-friendly companies in North

Carolina. We were named as one of

the Healthiest Employers of Greater

Charlotte by the Charlotte Business

Journal, and we have consistently been

included as a Best Place to Work in our

major markets.

We place a strong emphasis on

developing our employees as well as

recruits. In 2014 our internship

program was ranked second in the

nation by Vault.com, an influential

source of ratings and insights for

students and professionals. Engaging

and retaining top talent enables us to

provide excellent client service.

FROM STUDENTS TO ASPIRING LEADERS

We continually invest in our current and

future employees: From students

exploring opportunities to future

shareholders and leaders of our firm,

our aim is to enhance leadership skills at

every stage of a career.

We start with Encompass, our three-

day summer program for rising juniors

and seniors from colleges across the U.S.

This program allows them to explore and

expand their leadership potential.

The next step is our award-winning

internship program, Envision. This

seven-week summer internship is

designed to give students an

opportunity to discover potential career

paths within Elliott Davis Decosimo and

obtain valuable work experience in the

STRENGTHENING OUR CREW


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public accounti ng fi eld. In additi on to work responsibiliti es,

students undertake community service projects and

complete a summer-long project that they present at the

end of the program.

Engage is our program for fi rst-year employees. The

curriculum begins with two days of orientati on and three

days of technical training at the company headquarters

in Greenville, S.C. New employees are then provided with

an individual coach to guide them through training and

development opportuniti es to help them achieve career

goals quickly.

“ My assignments gave me a

well-rounded experience. In

addition to technical training,

I learned the value of client

relationships. In fact, I started

working with a few of my

current clients during my

internship. Working alongside

my team members made

my transition from intern to

employee seamless.”

P A L A K T H A K O R E , S TA F F, C H A R L O T T E , N C

The Emerging Leaders Academy facilitated by

Upstream Academy helps us to develop future leaders of

our fi rm. Managers and senior managers are nominated to

parti cipate in this three-year program where they are paired

with a more experienced fi rm leader to serve as their guide.

The Advanced Leadership Program is designed for

a select group of highly moti vated senior managers who

are on the fast track to shareholder. They att end interacti ve

sessions where they learn the requirements for shareholders

of the fi rm, plan fi rm-wide initi ati ves and undergo intensive

leadership training.

MAKING A POSITIVE IMPACT ON OUR COMMUNITIES

Elliott Davis Decosimo is made up of people who work,

play, go to school, have families and are engaged in their

communiti es. Community involvement is part of our fi rm’s

mission and a priority for our professionals. Throughout

our footprint, we donate our services, serve on boards and

parti cipate in a variety of fundraisers, including those

sponsoring numerous arts organizati ons. Employees from

most of our locati ons take part in our annual United Way

campaign. The campaign educates our people about the

needs in our communiti es and achieves incredibly high

parti cipati on across the fi rm.


A CAUSE CLOSE TO HIS HEART:

ONE EMPLOYEE’S PERSPECTIVE

David Stewart, Tax Manager, Raleigh

David serves on the board of the American Diabetes Associati on of

Eastern North Carolina, a cause close to his heart. His mother has batt led

type 2 diabetes for the past 10 years. David is passionate about raising

awareness and helping those who have diabetes gain bett er access to

the supplies and treatment they need.

In his role as board member, David helped re-shape community board

leadership. He recruited new members, developed and assigned roles

and facilitated collaborati on. He served as the Team Recruitment Chair

for the American Diabetes Associati on StepOut walk in Raleigh. The 2014

event raised $200,000 to help fund research, educati on, preventi on and

advocacy initi ati ves.

“ I want to be involved in a cause where I

feel personally passionate and connected.

Diabetes is prevalent, and managing this

disease can be a challenge fi nancially and

physically. Serving on the ADA board is an

opportunity to make a positive impact on

my community and contribute to something

much larger than myself.”

“ Whether it’s preparing and

serving meals for families

at Ronald McDonald

House or supporting our

local Go Red for Women

campaign, everyone in the

Cincinnati offi ce of Elliott

Davis Decosimo takes great

pride in being involved in

our community. It’s part of

who we are, because we are

more than just an offi ce. We

are part of our community

and believe it’s important to

take the time to work toward

making a difference.”

KATHY MITTS, CINCINNATI OFFICE MANAGING SHAREHOLDER


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Each day, we seek to make a difference by what we do in our work

and in our community outreach. We strive to achieve quality and

continually improve while always holding a sense of mutual respect

for those we serve.


OFFICE LOCATIONSALABAMA

Huntsville, AL

200 Clinton Avenue

Huntsville, AL 35801

Phone: 256.517.1111

GEORGIA

Atlanta, GA

Overlook II

2839 Paces Ferry Road SE #350

Atlanta, GA 30339

Phone: 770.980.9394

Augusta, GA

One Tenth Street, Suite 400

Augusta, GA 30903-2278

Phone: 706.722.9090

Dalton, GA

109 West Morris Street

P.O. Box 769

Dalton, GA 30722

Phone: 706.278.7100

NORTH CAROLINA

Charlotte, NC

700 East Morehead Street, Suite 400

Charlotte, NC 28202

Phone: 704.333.8881

Charlotte, NC (Dental Services)

8816 Red Oak Boulevard, Suite 100

Charlotte, NC 28217

Phone: 704.808.5232

Raleigh, NC

5410 Trinity Road, Suite 320

Raleigh, NC 27607

Phone: 919.783.7073

OHIO

Cincinnati, OH

201 East Fifth Street, Suite 2100

Cincinnati, OH 45202

Phone: 513.579.1717

SOUTH CAROLINA

Charleston, SC

100 Calhoun Street, Suite 300

Charleston, SC 29401

Phone: 843.577.7040

Columbia, SC

1901 Main Street, Suite 900

P.O. Box 2227

Columbia, SC 29201

Phone: 803.256.0002

Greenville, SC

Corporate Headquarters

200 East Broad Street, Suite 500

P.O. Box 6286

Greenville, SC 29606-6286

Phone: 864.242.3370

Greenwood, SC

The Professional Building

340 Main Street

P.O. Box 429

Greenwood, SC 29648-0429

Phone: 864.229.4951

TENNESSEE

Chattanooga, TN

Tallan Financial Center

Suite 1100, Two Union Square

Chattanooga, TN 37402

Phone: 423.756.7100

Knoxville, TN

First Tennessee Plaza

800 South Gay Street, Suite 1919

Knoxville, TN 37929

Phone: 865.546.0021

Memphis, TN

Marsh Center

1000 Ridgeway Loop Road, Suite 402

Memphis, TN 38120

Phone: 901.683.8899

Nashville, TN

Roundabout Plaza

1600 Division Street, Suite 225

Nashville, TN 37203

Phone: 615.248.5500

Nashville, TN (Brentwood)

5214 Maryland Way, Suite 307

Brentwood, TN 37027

Phone: 615.292.7135

VIRGINIA

Richmond, VA

901 E. Byrd Street

Suite 1000

Richmond, VA 23219

Phone: 804.612.4380

Elliott Davis Decosimo is an independent member firm of Moore Stephens North America, which is itself a regional member of Moore Stephens International Limited (MSIL), one of the world’s

largest CPA firm associations with resources in every major market around the globe. All the firms in MSIL are independent entities, owned and managed in each location. Their membership in,

or association with, Moore Stephens International Limited should not be construed as constituting or implying any partnership between them.An independent firm associated with

Moore Stephens International Limited

Download - Elliott Davis Decosimo 2015 Report to Clients & Friends

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