M&P chief Scudder tells WebCPA: "We've always had the right to walk away."
"We are disappointed that H&R Block has chosen to pursue litigation,â€ McGladrey & Pullen managing partner Dave Scudder tells WebCPA. â€œUnder the terms of our shared services agreement, we have every right to terminate that arrangement.â€
More from Scudder at WebCPA:
â€œWeâ€™ve always been an independent firm, and thereâ€™s no reason we wouldnâ€™t retain those rights going forward.â€
â€œTimes are very different from 1999 when we entered into this arrangement to outsource some of the administrative services to them,â€ he said. He described the decision as a â€œcombination of economic conditions and the overall cost benefits of that agreement, combined with what we think is the opportunity and whatâ€™s going on in the marketplace right now.â€
â€œCertainly [itâ€™s] a much more complicated time for our clients, a highly regulated, complex environment for CPAs, and the structure and the services agreement that we have does cause some complexity,â€ he added. â€œSo when you look at it as a combination, itâ€™s a very simple business decision about looking forward and serving our clients.â€