Armanino Secures Minority Investment From Further Global

Further Global says on its website that it targets equity investments of $75 million to $200 million and has the ability to execute significantly larger transactions through co-investment.

“While we typically seek to take control positions, we are very comfortable operating in minority positions, given appropriate alignment and governance rights,” Further Global says.

In taking on a minority investment like this, an accounting firm maintains majority control of its business, as well as its existing executive and leadership teams, while having a capital partner that supports the firm’s strategic growth into additional markets, improves the firm’s technology infrastructure, and provides additional resources.

Most recently, top 30 firm Sikich and top 200 firm ATA have received minority investments from private equity firms.

As a result of the deal, Armanino will operate under an alternative practice structure: Armanino CPA LLP will provide attest services as a licensed CPA firm, while Armanino Advisory LLC will provide tax, advisory, business consulting, and other non-attest services. Collectively, these entities and the subsidiaries will continue under the brand name Armanino.

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

In a post on LinkedIn about the deal, Koltin Consulting Group CEO Allan Koltin wrote, “Armanino ranks as high as any CPA firm in the country with the private equity community. Their deal with Further Global Capital Management fit just like a glove. They will keep control and now have the capital structure to compete on the biggest of stages.”