27 FEB 2025 / M&A UPDATES

CohnReznick Announces Strategic Growth Investment from Apax Partners

- MYCPE ONE Insights Team

CohnReznick LLP, a leading advisory, assurance, and tax firm, has secured a strategic growth investment from funds advised by Apax Partners LLP. This marks the firm's first institutional investment, aimed at accelerating its growth strategy, enhancing client solutions, and expanding career opportunities for its employees.

In collaboration with Apax, CohnReznick plans to further invest in talent and business operations to drive growth. Apax will leverage its operational expertise and experience in professional services to support CohnReznick's value creation plan. This includes expanding service lines, developing technology-centric client solutions, entering new markets, cultivating top-tier talent, and advancing the firm's existing technology platform to foster innovation and efficiency. Additionally, Apax will assist in pursuing targeted acquisitions to enhance CohnReznick's client offerings.

David Kessler, CEO of CohnReznick, stated, "Our partnership with Apax is a milestone moment in CohnReznick’s history. We have consistently delivered strong growth and cemented our position in the mid-market, thanks to our best-in-class talent, industry expertise, and comprehensive service offerings. This strategic investment from the Apax Funds will help us continue on our growth trajectory, expanding our solutions and geographic presence to meet client needs while continuing to create exciting career growth for our people."

Ashish Karandikar, Partner at Apax Partners, expressed enthusiasm about the partnership: "Over the past two years, we have built a strong relationship with the CohnReznick team and have been deeply impressed by the company’s culture, vision, and the consistent growth they have achieved. We are excited to partner with David and the firm’s leadership team to fuel the next phase of growth. Together, we aim to accelerate service line expansion, explore new geographic opportunities, and drive innovation."

Allan D. Koltin, CEO of Koltin Consulting Group, who advised on the combination, noted, "It was love at first sight – I can’t recall two firms and their leaders culturally and strategically aligning as fast as they did. When one side talked, the other side finished the sentence. No question in my mind, this combination will produce one of the next $2 billion firms in the accounting profession, but more importantly produce a lot of successful people and clients along the way."

Upon completion of the transaction, CohnReznick will adopt an alternative practice structure. CohnReznick LLP, a licensed CPA firm, will provide attest services under the leadership of CEO Kelly O’Callaghan. CohnReznick Advisory LLC, which will not be a licensed CPA firm, will offer tax, advisory, and other non-attest services, with David Kessler serving as CEO.

This strategic investment underscores CohnReznick's commitment to enhancing its service offerings and expanding its reach to better serve clients and provide growth opportunities for its professionals.

Until next time…

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