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Andersen, the US unit of Andersen Global, is considering an IPO in 2025, the Wall Street Journal reported. Andersen Global, an association of consulting firms, was formed in the wake of the 2002 collapse of Big Five accounting firm Arthur Andersen. The parent company has more than 17,000 employees worldwide and earned around $1.9 billion in revenue last year.
Andersen is the 11th-largest tax services provider in the US; it made $630 million last year, and has more than 2,000 staff members.
Of 264 US partners, 99% voted in favor of an IPO. The bid would make Andersen one of just a handful of publicly listed tax providers, alongside H&R Block and CBIZ. Under the terms of the deal, US partners “would collectively receive compensation equal to 25% of firm revenue” plus “stock price appreciation of public shares,” the Wall Street Journal reported. That’s comparable to 25.7% of revenue and residuals of 18.9% partners got last year.
The vote “will enable me to advance discussions for key positions and put us in a place where we can pull the trigger when we are ready,” CEO Mark Vorsatz said in an email to Andersen’s partners.
Andersen is still evaluating the plan, and it’s not certain whether the firm will move forward with an IPO. It’s also considering other avenues for raising capital, including private equity investment or money from a private family-owned company.
Several major accounting firms have accepted private equity investment in the past three years. In March, New Mountain Capital bought a stake in Grant Thornton, the nation’s seventh-largest accounting firm.