Private equity-backed top 25 accounting firm Carr, Riggs & Ingram (CRI) has merged in Indianapolis-based top 200 CPA firm CapinCrouse, effective Jan. 17, in what is the largest deal in CRI’s 28-year history.
Financial terms of the deal weren’t disclosed. The combination will add 40 partners, 185 professionals, and 15 offices to Enterprise, AL-based CRI’s team. CapinCrouse will continue to operate under its existing brand, according to a media release.
Founded in 1972, CapinCrouse is the largest accounting firm exclusively serving nonprofits, such as faith-based organizations and private colleges, in the U.S.
“For over 50 years, the firm has served domestic and international outreach organizations, universities and seminaries, foundations, media ministries, rescue missions, relief and development organizations, churches and denominations, and many others by providing support in the key areas of financial integrity and security,” CapinCrouse says on its website. “In addition, CapinCrouse members regularly contribute to policy decisions that impact our nation’s nonprofit entities.”
“This merger represents an exciting milestone in our firm’s history and a significant advancement for both CRI and CapinCrouse,” Bill Carr, chairman of CRI Advisors LLC, said in a statement. “We have previously invested in firms that specialize in serving faith-based organizations and private colleges. With the addition of CapinCrouse, CRI is now positioned to become the leading national provider in these vital markets. By combining our strengths, we will enhance the value we offer and greatly expand our national geographical presence. We are proud to welcome CapinCrouse to the CRI family.”
Fran Brown, managing partner of CapinCrouse, said the firm is excited to now have access to more offerings and resources from CRI “to further drive exceptional client service.”
“For over 50 years, our focus has been on providing innovative service to nonprofit organizations whose outcomes are measured in lives changed. CRI’s commitment to client service, respect, and integrity is an excellent fit with our mission and firm culture,” he said.
CRI announced last November that it had wrapped up a private equity deal with private investment management firm Centerbridge Partners and venture capital firm Bessemer Venture Partners.
The investment from Centerbridge and Bessemer is intended to help CRI accelerate growth through strategic expansion into new markets and service areas, investments in technology to enhance service delivery, attracting and retaining top professional talent, and enhancing internal infrastructure, the accounting firm said in a media release. This infusion of capital will bolster CRI’s organic growth and M&A strategy, paving the way for expanded geographic reach and service capabilities, the firm added.
CRI now operates in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations, and professional standards. Carr, Riggs & Ingram LLC, an independent licensed CPA firm, will provide assurance, attest, and audit services. CRI Advisors LLC and its subsidiary entities will operate as a separate legal entity, providing clients with tax and business consulting services.
“It is interesting to note that this is CRI’s biggest M&A deal in its history, and it comes on the heels of their private equity deal with Centerbridge Partners and Bessemer Venture Partners,” said Allan Koltin, CEO of Koltin Consulting Group, who advised both firms on the combination. “CapinCrouse, a top 125 firm nationally, is viewed by many as the preeminent firm in the country when it comes to the audit and related advisory services of nonprofits and religious organizations. My intuition suggests that going forward, we will see CRI expanding its geographic reach nationally by combining with more top 200 firms.”
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