08 OCT 2024 / M&A UPDATES

Armanino Secures Minority Investment from Further Global

- MYCPE ONE Insights Team

Summary

It is generated by AI

San Ramon-based accounting firm, Armanino, has accepted a minority investment from private equity firm, Further Global Capital Management. Whilst retaining full control over its operations and ownership, this strategic partnership aims to enhance Armanino's technological and operational capacities, notably in areas such as AI, talent acquisition, and M&As, potentially impacting the accounting industry by showing how PE investment can foster innovation without ceding operational control.

Armanino, a leading U.S. accounting firm based in San Ramon, California, has accepted a minority investment from Further Global Capital Management, a private equity firm. This strategic partnership marks a pivotal move as Armanino seeks to enhance its technological and operational capabilities while retaining full control over its operations and ownership.

After years of evaluating private equity options, Armanino identified Further Global as the right cultural and strategic fit. The investment, though minority, is expected to accelerate the firm's growth in artificial intelligence (AI), mergers and acquisitions (M&A), and talent acquisition. Armanino is one of the few top 20 accounting firms to maintain full operational control while engaging with private equity, making this deal unique in the industry.

The capital will be directed toward expanding Armanino’s entrepreneurial ventures, allowing the firm to say "yes" to more innovation and growth initiatives. The investment also benefits staff, offering new ways to align employees with the firm's growth and success. The firm’s entrepreneurial focus remains a core part of its mission, ensuring that despite the capital infusion, Armanino continues to operate with the same culture and client-focused approach it’s known for.

In a strategic structural shift, Armanino will transition into an alternative practice structure. This split will create two distinct entities: Armanino LLP, a CPA firm that will handle attest services, and Armanino Advisory LLC, which will focus on non-attest services like consulting and advisory.

Allan D. Koltin, CEO of Koltin Consulting Group, who has advised Armanino for over two decades, reaffirmed that this investment will not alter the essence of Armanino. The firm remains true to its entrepreneurial roots, its client service philosophy, and its long-term mission. Koltin emphasized that although private equity interest was high, Armanino carefully chose Further Global after years of consideration, ensuring the best alignment with its vision for the future.

This deal is expected to create ripples across the accounting industry, especially among firms considering similar paths. Armanino’s decision could inspire other firms to explore private equity as a way to fund innovation without relinquishing operational control. The focus on AI and technology-driven growth positions Armanino as a trendsetter, likely pushing other firms to re-evaluate how they invest in their future while maintaining their independence.

This minority investment, Armanino demonstrates how a well-strategized deal can provide the capital needed to accelerate innovation and growth while safeguarding the firm’s core values and operational independence. The move reflects the evolving landscape of the accounting profession, where staying ahead in technology, talent acquisition, and M&A is essential for long-term success.

Until next time…

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Armanino Secures Minority Investment from Further Global

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