BY ALLISSA KLINE
Business First

Buffalo's largest accounting firm is growing its Rochester footprint.

On Jan. 1, seven employees from a Rochester-based accounting firm will join Freed Maxick & Battaglia PC, the firm announced last week. All will relocate to Freed Maxick's office in Brighton, a Rochester suburb.

Robert Glaser, managing director, said Freed Maxick was contacted by Arnold Gray of Gray Certified Public Accounting PC, who expressed interest in merging with Freed. Gray will join the firm as a director.

"It helps us grow," said Glaser, who declined to discuss terms of the deal. "We were hoping to have about 30 people (at the Rochester office) by the end of 2008, so we made our mark."

Another Rochester firm, Bernardi & Russo LLP, merged with Freed Maxick in September 2007.

The sluggish economy is driving smaller firms to seek out opportunities to stay in existence, Glaser said. "You can either invest in the future or choose not to invest in the future, and we chose to invest," he said.

Joining Freed Maxick will give Gray staff more resources, especially for its municipal auditing practice, Gray said. The weakening economy did not play a role in Gray's decision to merge, he said.

"Probably the most pressing issue would have been staffing, because there's a shortage of accountants," he said. "This gives us better access to the ability to recruit as well as access to their very large staff."

Gray said it's becoming harder to recruit personnel.

"The situation is becoming aggravated because the accounting profession decided to go to five years to get the license," he said.

Freed Maxick isn't ruling out future mergers or acquisitions.

"We would definitely look at other opportunities as they come along," Glaser said.

Gray CPA was formed in 1991. Freed Maxick has offices in Buffalo and Batavia and employs about 250 professional and administrative staff.