Top 100 accounting firm Sax announced last week that it has received a minority investment from Cobepa, a global private equity firm with offices in Brussels and New York.
The Parsippany, NJ-based firm said the investment will “support [its] continued expansion, innovation, and commitment to delivering exceptional value to its clients.”
Because Sax didn’t sell a majority stake to Cobepa, it will retain independence with no disruption to client engagements or relationships, the firm said. Other accounting firms, such as Armanino, Sikich, and ATA, also received minority investments from private equity groups.
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Sax said it will restructure to accommodate the investment, providing attest services through Sax LLP, a licensed CPA firm, and advisory, consulting, and other professional services through Sax Advisory Group.
The firm said it plans to pursue strategic acquisitions to expand its physical footprint along the East Coast, enhance its service offerings, and drive further technological innovation across its practice areas.
“This is really a pivotal moment for our company and the industry,” Joseph Damiano, CEO of SAX Advisory Group, said in a statement on July 17. “We’re doing something here that many other firms have not done—which is to remain independent while taking on a sponsor to assist in our continued growth strategy. With Cobepa’s support, we’re better positioned than ever to scale our offerings, invest in our people, and serve our clients at an even higher level.”
Cobepa manages a diverse portfolio of private equity investments representing approximately $5.3 billion of equity capital. The firm said it invests in leading companies with superior business models, sustainable market positions, and leading management teams.
“Our investment in SAX is a direct result of their proven business model, strong leadership team, and client-first culture. We share a common vision for the business and believe that our ‘hands-with’ approach will unlock compelling opportunities to continue growing the company and expanding its reach while maintaining the same high-quality client service that defines the firm,” said Andrew Hollod, managing director of North America for Cobepa.
The deal was facilitated by Houlihan Lokey, represented by Managing Director Louis Trimble, CFA. Sax was advised by Lowenstein Sandler, led by Nicholas San Filippo IV, and Vedder Price, led by Steven R. Berger. Cobepa was advised by Weil, Gotshal & Manges LLP, led by Luke Laumann.
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