Solega Co. Done For Your E-Commerce solutions.
  • Home
  • E-commerce
  • Start Ups
  • Project Management
  • Artificial Intelligence
  • Investment
  • More
    • Cryptocurrency
    • Finance
    • Real Estate
    • Travel
No Result
View All Result
  • Home
  • E-commerce
  • Start Ups
  • Project Management
  • Artificial Intelligence
  • Investment
  • More
    • Cryptocurrency
    • Finance
    • Real Estate
    • Travel
No Result
View All Result
No Result
View All Result
Home Investment

Blackstone joins private equity deal wave in US accounting sector

Solega Team by Solega Team
January 7, 2025
in Investment
Reading Time: 3 mins read
0
Blackstone joins private equity deal wave in US accounting sector
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


A Blackstone-led investor group is buying a majority stake in US accounting firm Citrin Cooperman, in a deal that gives the target an enterprise value over $2bn and marks a significant step up in valuations across the sector.

Blackstone has acquired the stake from smaller rival New Mountain Capital, according to two people familiar with the matter, marking the $1tn private capital group’s first deal in an industry undergoing a wave of takeover activity.

In the past three years, a third of the largest US accounting groups have entered the portfolios of private equity funds, with Citrin Cooperman the first firm to change hands twice.

The deal will be announced later on Tuesday, according to the people. The Blackstone-led group will have an ownership stake above two-thirds, they said, and will include smaller investors, to keep Blackstone’s stake below 50 per cent and assuage regulatory concerns about the independence of Citrin Cooperman’s audit business.

Audit accounts for around 20 per cent of the group’s revenue. More than half of its fee income is from tax work, and around a quarter from advisory work.

New Mountain was one of the first major private equity groups to invest in the US accounting sector when it purchased a controlling stake in Citrin Cooperman in late 2021, in a deal that gave the accountancy group an enterprise value of about $500mn. Its sale has been keenly awaited in the sector for a signal on valuations.

Two people familiar with the matter said Blackstone was buying Citrin Cooperman at a multiple of around 15 times earnings before interest, taxes, depreciation and amortisation, compared with New Mountain’s initial acquisition at 11 times ebitda.

One person familiar with Blackstone’s thinking said the business was a lower-risk proposition than at the time of New Mountain’s acquisition, as management has successfully navigated the transition away from the old partnership model and made significant investments in technology.

Private equity ownership has turbocharged merger and acquisition activity in the accounting sector. Citrin Cooperman had revenue of $350mn when New Mountain bought it three years ago, according to people familiar with the figures. That had since grown to about $850mn in 2024 following a string of bolt-on acquisitions of regional accounting firms, they said, making it one of the top 20 largest firms in the US.

Citrin Cooperman partners will again roll over the majority of their ownership in the firm but will get windfalls from selling some shares, according to people familiar with the Blackstone agreement. Partners were briefed on details of the deal on Monday.

Management are expected to increase their stake over time, through the allocation of performance bonuses.

After the Citrin Cooperman deal, New Mountain last year acquired a majority stake in the much larger US accounting firm Grant Thornton, whose clients tend to be bigger than the small and mid-size companies targeted by Citrin Cooperman. Last week, Grant Thornton US acquired its Irish sister firm in a deal funded by New Mountain.

Blackstone and New Mountain declined to comment.



Source link

Tags: accountingBlackstonedealequityJoinsprivateSectorwave
Previous Post

Updating a 12th-Century Palazzo, Where the Walls Had Secrets

Next Post

Why You Could Make More In Retirement Than While Working

Next Post
Why You Could Make More In Retirement Than While Working

Why You Could Make More In Retirement Than While Working

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR POSTS

  • 10 Ways To Get a Free DoorDash Gift Card

    10 Ways To Get a Free DoorDash Gift Card

    0 shares
    Share 0 Tweet 0
  • They Combed the Co-ops of Upper Manhattan With $700,000 to Spend

    0 shares
    Share 0 Tweet 0
  • Saal.AI and Cisco Systems Inc Ink MoU to Explore AI and Big Data Innovations at GITEX Global 2024

    0 shares
    Share 0 Tweet 0
  • Exxon foe Engine No. 1 to build fossil fuel plants with Chevron

    0 shares
    Share 0 Tweet 0
  • They Wanted a House in Chicago for Their Growing Family. Would $650,000 Be Enough?

    0 shares
    Share 0 Tweet 0
Solega Blog

Categories

  • Artificial Intelligence
  • Cryptocurrency
  • E-commerce
  • Finance
  • Investment
  • Project Management
  • Real Estate
  • Start Ups
  • Travel

Connect With Us

Recent Posts

China says U.S. undermined Geneva trade deal after Trump accusations

China says U.S. undermined Geneva trade deal after Trump accusations

June 2, 2025
Retreat of DEI has not changed priorities of executive education

Retreat of DEI has not changed priorities of executive education

June 2, 2025

© 2024 Solega, LLC. All Rights Reserved | Solega.co

No Result
View All Result
  • Home
  • E-commerce
  • Start Ups
  • Project Management
  • Artificial Intelligence
  • Investment
  • More
    • Cryptocurrency
    • Finance
    • Real Estate
    • Travel

© 2024 Solega, LLC. All Rights Reserved | Solega.co