Latest news with #H&F
Yahoo
a day ago
- Business
- Yahoo
Former rivals Baker Tilly and Moss Adams just merged as private equity reshapes accounting. Their CEOs explain why they did the deal.
Baker Tilly and Moss Adams have merged to create the sixth-largest advisory CPA firm in the US. "We just added a bunch of arrows into our quiver," Jeff Ferro, CEO of Baker Tilly, told Business Insider. The deal marks a major shift for the mid-market landscape, which is being heavily influenced by private equity. Baker Tilly and Moss Adams merged this week in a deal that marks another shake-up for mid-market consulting firms and emphasizes the role being played by private equity in US accounting. The two firms, which are both in the tier below the Big Four, have a combined annual revenue of over $3 billion. By joining forces, they've catapulted themselves above BDO, Grant Thornton US, and CLA to become the 6th largest accounting firm by revenue in the US. The move brings together 11,500 employees into one firm that will keep the Baker Tilly name and be an independent member firm in the Baker Tilly International network. In a joint interview, the two CEOs of the merged firms told Business Insider that the move is mutually strategic and will help them navigate the challenges facing the mid-market. "We just added a bunch of arrows into our quiver," said Jeff Ferro, CEO of Baker Tilly. The deal also offers an insight into how private equity is reshaping the industry in the US. In 2024, Baker Tilly sold a stake to the private investment groups Hellman & Friedman (H&F) and Valeas, in the second-largest deal in the sector at the time. Baker Tilly is now, thanks to the merger, the largest firm in the industry to be partly owned by private-equity investors. It's a trend that is redefining the culture and business model of traditional accounting firms. Firms have typically paid out profits to equity partners, who also get a vote on how they are run. Private equity offers an influx of capital to help firms evolve their technology and data, but requires firms to divest the control historically promised to partners, shaking up their culture. Ferro told BI that Baker Tilly's strategic plan had been to grow through acquisition, and was a key part of what H&F bought into when they signed the deal. H&F will also make a "meaningful additional strategic investment in the business" as part of this transaction. "Our chances of executing our strategy were good, and now I think they're great," said Ferro. Combining firms also created strategic advances in geographic reach — Moss Adams is West Coast-focused, while Baker Tilly mostly covers the East, central, and has some international clients. The two firms bring specific industry strengths to the table and different tools and service capabilities to offer clients, Ferro said. "I see us being a $6 billion revenue organization in five years," Ferro said, which would mean doubling their current combined revenues. "It's quite a win," agreed Eric Miles, the former CEO of Moss Adams, who will take over from Ferro as CEO of Baker Tilly when Ferro retires at the end of the year. The needs of the mid-market client base are changing, and they require more scale and breadth of services than they used to, he said. At the same time, the firms themselves are seeing increasing demand for true fixed costs like training and development, and AI. Those kinds of pressures require large organizations to scale to be competitive, he said. Neither firm had to do the merger, Miles said, "But we had this strategic lens on it, saying, 'how can we be stronger? What's going to be required to be a leading competitive firm in the future?'" "The partnership with Baker-Tilly helped us meet all those long-term strategic objectives, which helps us not only deal with these forces, but get out in front and lead in the market," Miles said. Have a tip? Contact this reporter via email at pthompson@ or Signal at Polly_Thompson.89. Use a personal email address and a nonwork device; here's our guide to sharing information securely. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
a day ago
- Business
- Business Insider
Former rivals Baker Tilly and Moss Adams just merged as private equity reshapes accounting. Their CEOs explain why they did the deal.
Baker Tilly and Moss Adams merged this week in a deal that marks another shake-up for mid-market consulting firms and emphasizes the role being played by private equity in US accounting. The two firms, which are both in the tier below the Big Four, have a combined annual revenue of over $3 billion. By joining forces, they've catapulted themselves above BDO, Grant Thornton US, and CLA to become the 6th largest accounting firm by revenue in the US. The move brings together 11,500 employees into one firm that will keep the Baker Tilly name and be an independent member firm in the Baker Tilly International network. In a joint interview, the two CEOs of the merged firms told Business Insider that the move is mutually strategic and will help them navigate the challenges facing the mid-market. "We just added a bunch of arrows into our quiver," said Jeff Ferro, CEO of Baker Tilly. The deal also offers an insight into how private equity is reshaping the industry in the US. In 2024, Baker Tilly sold a stake to the private investment groups Hellman & Friedman (H&F) and Valeas, in the second-largest deal in the sector at the time. Baker Tilly is now, thanks to the merger, the largest firm in the industry to be partly owned by private-equity investors. It's a trend that is redefining the culture and business model of traditional accounting firms. Firms have typically paid out profits to equity partners, who also get a vote on how they are run. Private equity offers an influx of capital to help firms evolve their technology and data, but requires firms to divest the control historically promised to partners, shaking up their culture. Ferro told BI that Baker Tilly's strategic plan had been to grow through acquisition, and was a key part of what H&F bought into when they signed the deal. H&F will also make a "meaningful additional strategic investment in the business" as part of this transaction. "Our chances of executing our strategy were good, and now I think they're great," said Ferro. A merger that expands the firms' reach Combining firms also created strategic advances in geographic reach — Moss Adams is West Coast-focused, while Baker Tilly mostly covers the East, central, and has some international clients. The two firms bring specific industry strengths to the table and different tools and service capabilities to offer clients, Ferro said. "I see us being a $6 billion revenue organization in five years," Ferro said, which would mean doubling their current combined revenues. "It's quite a win," agreed Eric Miles, the former CEO of Moss Adams, who will take over from Ferro as CEO of Baker Tilly when Ferro retires at the end of the year. The needs of the mid-market client base are changing, and they require more scale and breadth of services than they used to, he said. At the same time, the firms themselves are seeing increasing demand for true fixed costs like training and development, and AI. Those kinds of pressures require large organizations to scale to be competitive, he said. Neither firm had to do the merger, Miles said, "But we had this strategic lens on it, saying, 'how can we be stronger? What's going to be required to be a leading competitive firm in the future?'" "The partnership with Baker-Tilly helped us meet all those long-term strategic objectives, which helps us not only deal with these forces, but get out in front and lead in the market," Miles said.
Yahoo
21-03-2025
- Business
- Yahoo
H&F Picks Goldman Sachs, Morgan Stanley for Verisure IPO
(Bloomberg) -- Private equity firm Hellman & Friedman has selected banks to lead the initial public offering of security group Verisure, potentially one of the largest listings in Europe in recent years, people familiar with the matter said. Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style Amtrak CEO Departs Amid Threats of a Transit Funding Pullback New York Subway Ditches MetroCard After 32 Years for Tap-And-Go NYC Plans for Flood Protection Without Federal Funds The Scary Thing About the Wildfire That Was Stopped Goldman Sachs Group Inc. and Morgan Stanley have been tapped as global coordinators for the listing, according to the people, who asked not to be identified as the information is private. Verisure's listing would serve as a much-needed boost to the European IPO market, which has slowed down recently amid market volatility. The private equity owners of Stada Arzneimittel AG have decided to push back the German drugmaker's IPO until September, Bloomberg News reported this week. More banks could get added to the roster, the people said. Representatives for H&F, Goldman Sachs and Morgan Stanley declined to comment. Bloomberg News reported this month that H&F was interviewing banks for the Verisure IPO and that Goldman Sachs and Morgan Stanley were among those that pitched for roles. The security group is more likely to list in Europe, with venues such as London, Amsterdam, Zurich and Stockholm being considered, people familiar with the matter said previously. Verisure develops monitored security systems for households and small businesses in Europe and Latin America. Its products include video detectors and cameras, smoke barriers, shock sensors and smart locks. H&F and Bain Capital acquired Verisure from EQT AB in 2011 at a valuation of 21 billion Swedish kroner ($2.1 billion). H&F became Verisure's majority shareholder four years later after buying the stake from Bain. Verisure is one of H&F's long-held investments. Another is insurance broker Hub International Ltd. The private equity firm is looking to raise at least $1 billion in equity from investors for Hub, in a potential deal valuing the business at $30 billion, Bloomberg News reported this month. --With assistance from Michael Hytha. Tesla's Gamble on MAGA Customers Won't Work A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers The Real Reason Trump Is Pushing 'Buy American' The Future of Higher Ed Is in Austin ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
London set to miss out on €20bn float of security group Verisure
The owners of Verisure, a provider of domestic alarm systems, are leaning towards a €20bn (£16.7bn) flotation in Amsterdam – a decision that would deliver another blow to London's hopes of capitalising on a revival in the market for major initial public offerings (IPOs). Sky News has learnt Euronext Amsterdam is emerging as the likeliest destination for a listing of Verisure following preliminary talks with a group of investment banks angling to work on the deal. Sources close to Verisure insisted on Monday no final decision about whether to proceed with an IPO, or its venue, had been taken. They acknowledged the possibility of such an outcome, however, despite the efforts of stock exchanges in London, Stockholm and Zurich to position themselves for the flotation. Money latest: One said recent rule changes in the UK could yet tip the balance back in London's favour. A number of Wall Street banks have pitched to work on the deal, Bloomberg News reported last week, while Sky News revealed in January were under way. Verisure is majority-owned by the private equity firm Hellman & Friedman (H&F), with a listing unlikely until next year. People close to Verisure said they expected that the company would be valued at more than €20bn, with some market sources suggesting the eventual figure could be as high as €30bn (£25.2bn). That figure includes Verisure's debt, meaning that its equity market capitalisation would be smaller. Verisure has roughly 5.5 million customers in 17 countries, including the UK, Brazil, Chile, Italy and the Netherlands. Under Austin Lally, its chief executive, it has been transformed into a lucrative subscription model-based business pitching technologically advanced services to its customer base. Four years ago, the company was responsible for a $2bn dividend payout to its owners. News of Verisure's deliberations comes at an increasingly critical time for the London Stock Exchange. David Schwimmer, the boss of its parent company, recently expressed confidence about its listings pipeline, although hopes that Shein, the Chinese-founded online fashion group, would stage a float in London this year have been buffeted by the early weeks of Donald Trump's presidency and protests about its alleged use of child labour in its supply chain. Data compiled by EY, the professional services firm, showed that 2024 was among the quietest years on record for new issuance, with just eight new listings - and only three on the main market. Just £778m in proceeds was raised during the year through IPOs, down 18% on the previous year. At the same time, the momentum of companies drifting away from London has gathered pace with Ashtead, the equipment rental company, saying it would relocate its listing to New York. Flutter Entertainment, the gambling group behind Paddy Power and Betfair, has already moved its primary listing to the US. H&F, which ranks among the world's most successful buyout firms, became Verisure's majority shareholder in 2015 when it bought the stake held by Bain Capital, another private equity group. At the time, the company was known as Securitas Direct Verisure Group, with it continuing to trade under the Securitas Direct brand in some markets. A spokesman for Verisure declined to comment on Monday.
Sky News
10-03-2025
- Business
- Sky News
London set to miss out on €20bn float of security group Verisure
The owners of Verisure, a provider of domestic alarm systems, are leaning towards a €20bn (£16.7bn) flotation in Amsterdam – a decision that would deliver another blow to London's hopes of capitalising on a revival in the market for major initial public offerings (IPOs). Sky News has learnt Euronext Amsterdam is emerging as the likeliest destination for a listing of Verisure following preliminary talks with a group of investment banks angling to work on the deal. Sources close to Verisure insisted on Monday no final decision about whether to proceed with an IPO, or its venue, had been taken. They acknowledged the possibility of such an outcome, however, despite the efforts of stock exchanges in London, Stockholm and Zurich to position themselves for the flotation. One said recent rule changes in the UK could yet tip the balance back in London's favour. A number of Wall Street banks have pitched to work on the deal, Bloomberg News reported last week, while Sky News revealed in January preparations for an IPO were under way. Verisure is majority-owned by the private equity firm Hellman & Friedman (H&F), with a listing unlikely until next year. People close to Verisure said they expected that the company would be valued at more than €20bn, with some market sources suggesting the eventual figure could be as high as €30bn (£25.2bn). That figure includes Verisure's debt, meaning that its equity market capitalisation would be smaller. Verisure has roughly 5.5 million customers in 17 countries, including the UK, Brazil, Chile, Italy and the Netherlands. Under Austin Lally, its chief executive, it has been transformed into a lucrative subscription model-based business pitching technologically advanced services to its customer base. Four years ago, the company was responsible for a $2bn dividend payout to its owners. News of Verisure's deliberations comes at an increasingly critical time for the London Stock Exchange. David Schwimmer, the boss of its parent company, recently expressed confidence about its listings pipeline, although hopes that Shein, the Chinese-founded online fashion group, would stage a float in London this year have been buffeted by the early weeks of Donald Trump's presidency and protests about its alleged use of child labour in its supply chain. Data compiled by EY, the professional services firm, showed that 2024 was among the quietest years on record for new issuance, with just eight new listings - and only three on the main market. Just £778m in proceeds was raised during the year through IPOs, down 18% on the previous year. At the same time, the momentum of companies drifting away from London has gathered pace with Ashtead, the equipment rental company, saying it would relocate its listing to New York. Flutter Entertainment, the gambling group behind Paddy Power and Betfair, has already moved its primary listing to the US. H&F, which ranks among the world's most successful buyout firms, became Verisure's majority shareholder in 2015 when it bought the stake held by Bain Capital, another private equity group. At the time, the company was known as Securitas Direct Verisure Group, with it continuing to trade under the Securitas Direct brand in some markets.
