Latest news with #WestCoast-focused
Yahoo
3 days 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
3 days 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.
Reuters
17-03-2025
- Sport
- Reuters
SMU, Dayton among top seeds in NIT as teams decline bids
March 17 - SMU, Dayton, UC Irvine and San Francisco are the No. 1 seeds in the 2025 National Invitation Tournament, organizers revealed Sunday night. Only four of the 32 teams in the field -- SMU, Stanford, Georgia Tech and Oklahoma State -- hail from one of the five power conferences, marking a potentially sharp decline in quality for the traditional second-tier tournament. The programs that declined tournament invites included Indiana, Northwestern, Rutgers, Wake Forest, Pitt, LSU and South Carolina. Indiana was among the first four teams out of the NCAA Tournament field. For contrast, LSU (3-15 in Southeastern Conference play) and South Carolina (2-16) were the only two SEC teams out of 16 to miss the NCAA Tournament. There were meant to be exempt bids for two teams from the ACC and SEC. SMU and Georgia Tech represent the ACC. This also marks the first year the NIT faces competition from the College Basketball Crown, which was promised two teams from the Big Ten, Big East and Big 12 conferences in its inaugural 16-team field. As for the NIT, teams will play on campus sites before the semifinals and finals are held in Indianapolis. Games begin this Tuesday. SMU will open against Northern Iowa and could face No. 4 seed Oklahoma State in the second round, as the Cowboys face Wichita State. Dayton will host former NCAA Tournament darlings Florida Atlantic in the opening game for their region, which also includes No. 2 seed George Mason, an Atlantic 10 rival. George Mason came close to stealing the conference's automatic bid to the NCAA Tournament from VCU on Sunday. UC Irvine finished 28-6 this season and fell to UC San Diego in the Big West tournament final. The Anteaters open against Northern Colorado and could draw No. 4 seed Georgia Tech in the second round. San Francisco will face Utah Valley and could face a regional rival in the second round, No. 4 seed San Jose State. Stanford is also in this West Coast-focused region, a No. 2 seed opening against Cal State Northridge.
Yahoo
26-02-2025
- Business
- Yahoo
MacKenzie Realty Capital Announces Letter of Intent to Purchase Waterfront Property in Suisun
ORINDA, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- MacKenzie Realty Capital, Inc. (Nasdaq: MKZR) ('MacKenzie' or the 'Company') announced that it signed a nonbinding letter of intent to expand its multi-family portfolio in Solano County, California, with a waterfront development property located adjacent to the Solano Yacht Club ('Westwind Residences'), a 5.73 acre parcel on which the Company hopes to develop 81 multi-family apartment units and 7 townhomes. Westwind Residences is a waterfront property located in downtown Suisun City, California. As previously reported, MacKenzie has two other developments in Solano County, including the 74-unit Aurora at Green Valley, which is proceeding under budget and ahead of schedule and is set to deliver its first units this summer. MacKenzie's second multi-family development, Blue Ridge at Suisun Valley, is entitled for 84 units, and we intend to break ground in late 2025. 'Westwind Residences will be our largest development to-date, and the highest profile, with its waterfront location right in downtown Suisun City' stated Robert Dixon, president of Mackenzie. 'It is a couple of blocks away from our property at One Harbor Center, the premier office location in Suisun City. We believe Solano County, and Suisun City in particular, is poised for extraordinary growth in the near future, with its location near Travis Airforce Base and multiple planned developments, including many that have been in the news lately.' Further, Chip Patterson, MacKenzie's Chairman noted that 'We are excited about multifamily projects in California. For example, our Southern California multi-family project, Hillview Hollywood, has 96% of its units currently occupied, and we have received a loan commitment for a refinancing that is scheduled to close in about 3 weeks, which will bring our interest rate down from 10% to about 5.8% at today's rates.' About MacKenzie Realty Capital, Inc. MacKenzie, founded in 2013, is a West Coast-focused REIT that intends to invest at least 80% of its total assets in real property, and up to a maximum of 20% of its total assets in illiquid real estate securities. We intend for the real property portfolio to be approximately 50% multifamily and 50% boutique class A office. The Company has paid a dividend every year since inception. The current portfolio includes interests in 4 multifamily properties and 8 office properties plus 2 multifamily developments. For more information, please contact MacKenzie at (800) 854-8357. Please visit our website at: Forward-Looking StatementsThis press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to remain financially healthy, and our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as 'anticipate,' 'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,' 'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,' 'target,' 'trajectory,' 'focus,' 'work to,' 'attempt,' 'pursue,' or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. For a further discussion of factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled 'Risk Factors' in annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time. 89 Davis Road, Suite 100 • Orinda, California 94563 • Toll-Free (800) 854-8357 • Local (925) 631-9100 • IR CONTACTAndrew Barwicki516-662-9461andrew@ in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
MacKenzie Realty Capital Reports Second Quarter FY 2025 Financial Results, Return to Positive FFO
ORINDA, Calif., Feb. 14, 2025 (GLOBE NEWSWIRE) -- MacKenzie Realty Capital, Inc. (Nasdaq: MKZR) ('MacKenzie' or the 'Company') today announced its financial results for the second quarter ended December 31, 2025. Key Financial Highlights:Operating Results for the Three Months Ended December 31, 2024: The Company had positive $2.8 million of funds from operations ('FFO') for the quarter, a return to positive FFO. The net loss of $4.5 million was offset by $2.2 million in depreciation expense and $5.1 million of impairment loss. Revenue for the quarter benefited by a $3.0 million early termination fee from the anchor tenant at MacKenzie Satellite Place. Net revenues for three months ended December 31, 2024, were $8.0 million, an increase of 124% from $3.6 million in the same period of 2023. Net operating income was $6.3 million, an of increase of 205%, from $2.1 million in the same period of 2023. Net loss was $4.5 million, compared to a $1.6 million loss in the same period of 2023. Paid a common stock quarterly dividend in the amount of $0.05 per share for the period ended December 31, 2024. Total shareholder equity was $97.7 million. Robert Dixon, President of MacKenzie, said 'We are gratified that our revenues continued to grow at a healthy pace, and that our operating expenses have declined significantly as both a percentage of our revenues as well as of our assets. We still have improvements to make, but the progress last quarter was significant.' About MacKenzie Realty Capital, Inc. MacKenzie, founded in 2013, is a West Coast-focused REIT that intends to invest at least 80% of its total assets in real property, and up to a maximum of 20% of its total assets in illiquid real estate securities. We intend for the real property portfolio to be approximately 50% multifamily and 50% boutique class A office. The Company has paid a dividend every year since inception. The current portfolio includes interests in 4 multifamily properties and 8 office properties plus 2 multifamily developments. For more information, please contact MacKenzie at (800) 854-8357. Please visit our website at: Forward-Looking StatementsThis press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, among others, our ability to remain financially healthy, and our expected future growth prospects. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as 'anticipate,' 'estimate,' 'believe,' 'continue,' 'could,' 'intend,' 'may,' 'plan,' 'potential,' 'predict,' 'should,' 'will,' 'expect,' 'objective,' 'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'effort,' 'target,' 'trajectory,' 'focus,' 'work to,' 'attempt,' 'pursue,' or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. For a further discussion of factors that could cause our future results, performance, or transactions to differ significantly from those expressed in any forward-looking statement, please see the section titled 'Risk Factors' in annual reports on Form 10-K and quarterly reports on Form 10-Q that we file with the Securities and Exchange Commission from time to time. 89 Davis Road, Suite 100 • Orinda, California 94563 • Toll-Free (800) 854-8357 • Local (925) 631-9100 • IR CONTACTAndrew Barwicki516-662-9461andrew@
