25 OCT 2024 / M&A UPDATES

Cohen & Company Partners with Lovell Minnick Partners to Accelerate Growth

- MYCPE ONE Insights Team

Summary

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Cleveland-based financial firm Cohen & Company has partnered with private equity firm Lovell Minnick Partners in a strategic growth deal set to finalize in December 2024. This partnership aligns with the company's strategic multi-year plan, aiming to expand service offerings, increase equity holders, enhance technological infrastructure, and improve overall professional growth and client experiences.

Cleveland-based firm Cohen & Company (FY23 net revenue: $153.9 million) has entered a strategic growth partnership with Lovell Minnick Partners (LMP), a private equity firm focused on investments in financial services, business services, and financial technology. The agreement, set to finalize on December 31, 2024, aims to propel Cohen & Company’s multi-year strategic plan.

Details of the Investment:

The collaboration with LMP will enable Cohen & Company to expand its service areas, enhance its technology infrastructure, and improve employee and client experiences. The partnership also focuses on increasing the number of equity holders within the firm, rewarding its employees and aligning their contributions with strategic goals.

Strategic Objectives:

Cohen & Company seeks to leverage this investment to advance its vision of becoming a leader in its field. Key areas of focus include:

- Broadening service offerings for industries such as mutual funds, private equity, real estate, and closely held businesses.

- Expanding its geographic presence.

- Enhancing employee growth opportunities and creating equity-based incentives.

- Maintaining its reputation for quality and innovation in accounting, tax, and advisory services.

Operational Changes:

Post-investment, Cohen & Company will operate under an **alternative practice structure**:

- Cohen & Company, Ltd., a licensed CPA firm, will oversee attest services under the leadership of Vince Curttright.

- Cohen & Co Advisory, LLC, a non-licensed entity, will provide business tax and advisory services, led by CEO Chris Bellamy.

Both entities will continue to operate under the unified Cohen & Co brand name while maintaining their individual governance.

Leadership Insights:

Chris Bellamy, CEO of Cohen & Company, emphasized the significance of the partnership:

“LMP will be a valuable strategic partner, offering a unique perspective on our industry and the clients we serve, along with a dedicated focus on human capital, which is crucial to our growth strategy as an employer of choice.”

Representatives from LMP, including Partner Jason Barg and Principal Tom Hutchins, expressed enthusiasm for the collaboration:

> “Cohen & Company’s vision for the future and its longstanding reputation as a premier accounting, tax, and advisory firm make them an ideal partner.”

Allan D. Koltin, CEO of Koltin Consulting Group, highlighted the growth potential:

> “This combination is expected to propel Cohen from a Top 50 CPA and advisory firm nationally to a Top 25 CPA and advisory firm over the next five to seven years.”

Legal and Transaction Details:

The agreement, which marks Cohen’s first institutional capital investment, is subject to standard closing conditions. Terms of the transaction remain undisclosed.

- Legal Counsel: Hunton Andrews Kurth LLP for Cohen & Company, Sidley Austin LLP for LMP.

This partnership positions Cohen & Company to continue its upward trajectory, combining LMP’s expertise in financial services with the firm’s existing strengths and future ambitions.

Until next time…

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Cohen & Company Partners with Lovell Minnick Partners to Accelerate Growth

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