Doeren Mayhew Inks Deal With Private Equity Firm Audax

Troy, MI-based Doeren Mayhew is selling a stake to Audax Private Equity to “support future innovation and growth,” the top 60 accounting firm said in a media release on Aug. 23.

Financial terms of the deal weren’t disclosed; however, a source told the website Going Concern that Doeren Mayhew is selling a majority stake to Audax. The deal is expected to close in September.

Beginning with EisnerAmper in August 2021 and up until most recently Aprio in July, several of the 30 largest accounting firms in the U.S. by revenue have struck deals with private equity firms to accelerate growth and expansion, as well as to further invest in talent, technology, and corporate infrastructure.

But it’s been rare for a firm outside of the top 30, like Doeren Mayhew, to partner up with a private equity firm for a boost of capital—although there’s a good possibility that we could see more of these deals from smaller firms in the top 100 in the future, especially those that want to grow while maintaining their independence.

Doeren Mayhew, which has nine U.S. offices in Florida, Georgia, Michigan, North Carolina, and Texas, as well as an office in the U.K., had $137.4 million in revenue during its most recent fiscal year, placing it 53rd in the top 100 accounting firms, according to INSIDE Public Accounting.

Headquartered in Boston, with offices in San Francisco, New York, and London, Audax Private Equity says it’s a “capital partner for middle market companies that seeks to facilitate transformational growth through its private equity and strategic capital strategies.” With approximately $19 billion of assets under management, over 270 employees, and 100-plus investment professionals, Audax has invested in more than 170 platforms and 1,300 add-on acquisitions since its founding in 1999, the firm said.

Audax’s investment provides additional capital to help Doeren Mayhew accelerate its growth and invest in enhancing the firm’s service offerings, technology infrastructure, and overall employee and client experience, the media release says. Through the investment, Doeren Mayhew will also look to broaden the firm’s geographic footprint via continued acquisitions. The firm’s current leadership team will remain in place and continue to manage operations, as well as provide the strategic direction for the firm.

Chad Anschuetz

“The accounting profession is transforming at a rapid pace. Continuing to be a leader that can drive client value and present more attractive employee opportunities requires us to pave a path forward to evolve quickly,” Chad Anschuetz, chairman and managing shareholder at Doeren Mayhew, said in a statement. “We believe Audax is the right strategic partner to help us achieve that and keep the Doeren Mayhew legacy alive. They bring the experience, resources, and a proven track record in the financial services sector that we’re confident will position us to execute our strategic initiatives focused on client and employee success.”

As part of the deal, Doeren Mayhew will operate under an alternative practice structure: Doeren Mayhew Assurance will provide attest services as a licensed CPA firm, while Doeren Mayhew Advisors LLC will provide business advisory, tax, and non-attest services. Collectively, these entities and the subsidiaries will continue under the brand name Doeren Mayhew.

The separation of audit and non-audit services through the deal allows Doeren Mayhew to comply with securities laws prohibiting conflicts of interest that could impair the objectivity of the firms’ auditors.

“Doeren Mayhew has an excellent reputation in the industry. The leadership team has built a unique platform, pairing deep sector-specific expertise with a commitment to client service,” said Bill Allen, managing director at Audax.

Adam Abramson, a partner at Audax Private Equity, added, “The firm has demonstrated a strong track record of driving both organic and inorganic growth. We look forward to partnering with them to continue building on their momentum.”