Armanino, a top 20 accounting firm, has a minority investment from Further Global Capital Management, a New York-based employee-owned private equity firm that invests in businesses within the financial services industry. Ta.
Financial terms of the deal were not disclosed, but Father Global will reportedly acquire a 20% stake in the San Ramon, California-based accounting firm.
The transaction was first reported by Accounting Today on October 18th.
Additionally, Global says on its website that it is targeting equity investments of between $75 million and $200 million and has the ability to execute significantly larger transactions through co-investments.
“Although we typically seek to be in a dominant position, we are very comfortable operating in a minority position given the appropriate coordination and governance authority,” Father Global says.
In taking on such minority investments, the accounting firm not only supports the existing management and leadership team, but also supports the company’s strategic growth into additional markets while retaining majority control of the business and We will also improve our technology infrastructure and provide additional resources.
Most recently, Sikic, a top 30 company, and ATA, a top 200 company, received minority investments from private equity firms.
As a result of this agreement, Armanino will operate under an alternative operating structure. Armanino CPA LLP is a certified public accounting firm that provides certified services, and Armanino Advisory LLC provides tax, advisory, business consulting, and other non-certified services. These entities and subsidiaries will collectively continue under the Armanino brand name.
The transaction’s separation of audit and non-audit services will allow Armanino to comply with securities laws that prohibit conflicts of interest that could impair the objectivity of auditors at both companies.
In a LinkedIn post about the deal, Alan Koltin, CEO of Koltin Consulting Group, wrote: The deal with Further Global Capital Management fits like a glove. They will maintain control and have a capital structure that allows them to compete on the biggest stage. ”
