Update below with a summary of the pre-recorded video CohnReznick CEO David Kessler put out for his people.
Fresh off the tip box:
The CohnReznick PE deal just closed. We just got an email from our CEO. Another one bites the dust.
Indeed.
If anyone wants to slip us a copy of that email please do so by email or text. Your anonymity is assured.
Reddit is discussing the deal, and the long-term effects of PE on the profession as a whole, here:
CohnReznick selling out to PE
byu/heartbr8kkid inAccounting
There’s a press release but who cares, it’s the same jerky-offy shit. The deal is with Apax, as usual no details about the transaction were disclosed. This quote from CEO David Kessler is funny though: “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. We were impressed by the Apax team’s track record in the professional services sector and their experience in driving operational excellence in complex businesses like ours, while continuing to create a best-in-class experience for employees and clients.”
Update: A tipster provided us with a summary of the nonsense CohnReznick’s CEO had to say about how the deal will affect the firm and people working there. Well, four out of the six bullets are nonsense. This was distributed within the firm as a pre-recorded video, not an email.
- “The deal will propel our vision forward with investment in talent, technology, and strategic acquisitions”
- “It will enable us to continue creating rewarding career opportunities for our people and deliver best in class solutions for our clients”
- “The PE model widens the path to partnership at CR as we achieve our goals” [Ed. note: lol. lmao even.]
- “This new infusion of capital allows us to more quickly pursue additional solutions, market presence, technology and developing top talent”
- The firm is being split into two entities all under one brand, similar to the Grant Thornton structure with advisory and tax in one entity that’s not a licensed CPA firm and attest services in the other that is a licensed CPA firm
- The attest services entity is getting a new CEO, Kelly O’Callaghan
Earlier:
In bed? Seems a little extreme. What does Chipman69 think about this? I suppose there could be penetration.
One of the Reddit commenters had it right – there is too much money sloshing around in private equity.