“Private Equity Invasion: Blackstone’s Landmark Acquisition Swarms the US Accounting Industry”
**Blackstone-led Investment Group Acquires Majority Stake in Citrin Cooperman for Over $2 Billion**
In a significant deal, a Blackstone-led investment group has acquired a majority stake in U.S. accounting firm Citrin Cooperman, valuing the company at over $2 billion. This acquisition marks a significant increase in valuations for the entire industry and is the first deal in the industry for Blackstone, a $1 trillion private capital group.
The deal, which is expected to be announced later this week, will see the Blackstone-led group own more than two-thirds of the stake, with smaller investors joining to keep Blackstone’s stake below 50%. This is to ease regulatory concerns about the independence of Citrin Cooperman’s audit business, which accounts for approximately 20% of the group’s revenue.
Citrin Cooperman has experienced significant growth over the past three years, with revenue increasing from $350 million to $850 million. The company has also made several bolt-on acquisitions of regional accounting firms, making it one of the 20 largest accounting firms in the country.
The acquisition is a significant milestone for the accounting industry, which has seen a wave of acquisition activity in recent years. A third of the largest U.S. accounting groups have entered the portfolios of private equity funds over the past three years, with Citrin Cooperman being the first to change hands twice.
**FAQs**
Q: Who is acquiring Citrin Cooperman?
A: A Blackstone-led investment group is acquiring a majority stake in Citrin Cooperman.
Q: What is the valuation of Citrin Cooperman?
A: The company is valued at over $2 billion.
Q: What is the ownership structure of the company?
A: The Blackstone-led group will own more than two-thirds of the stake, with smaller investors joining to keep Blackstone’s stake below 50%.
Q: What is the significance of this deal?
A: The deal marks a significant increase in valuations for the entire industry and is the first deal in the industry for Blackstone.
Q: What is the growth trajectory of Citrin Cooperman?
A: The company has experienced significant growth over the past three years, with revenue increasing from $350 million to $850 million.
**Conclusion**
The acquisition of Citrin Cooperman by a Blackstone-led investment group is a significant milestone for the accounting industry. The deal marks a significant increase in valuations for the entire industry and is the first deal in the industry for Blackstone. The company’s growth trajectory, driven by bolt-on acquisitions and increased revenue, makes it an attractive target for private equity investors. As the industry continues to experience a wave of acquisition activity, it will be interesting to see how other accounting firms are valued and acquired in the future.
