Key Takeaways
- • Eide Bailly, the 18th largest accounting firm by U.S. revenue, has agreed to sell a majority stake to Reverence Capital Partners in a deal valued at $1.8 billion, marking significant consolidation activity in the top-tier accounting services sector.
- • Reverence Capital Partners, a private investment firm focused on financial services, will make the majority investment through funds it manages, with the transaction expected to close following customary regulatory approvals and closing conditions.
- • The deal positions Eide Bailly alongside other recent large-scale private equity investments in the accounting industry, following KKR's valuation of competitor Crowe at over $3 billion weeks prior, signaling sustained PE appetite for professional services consolidation.
- • Jeremy Hauk, CEO and Managing Partner of Eide Bailly, is leading the firm through this transaction as it seeks growth capital and operational support from an established financial services-focused PE investor.
- • Legal advisors include Kirkland & Ellis and Vedder Price representing Reverence Capital, while BMO and Hunton Andrews Kurth are guiding Eide Bailly, indicating a substantially sized, institutionally-backed transaction.
Summary
Eide Bailly LLP has entered into a definitive agreement to sell a majority stake to Reverence Capital Partners in a transaction valued at $1.8 billion. The deal represents a significant capital infusion for the accounting and advisory firm, which ranks as the 18th largest accounting firm by revenue in the United States. Under the agreement, funds managed by Reverence Capital Partners will make the investment, though the precise acquisition percentage and capital structure details remain subject to standard closing conditions and regulatory approvals.
Reverence Capital Partners, a private investment firm with a dedicated focus on financial services, is positioning itself as a growth partner for Eide Bailly. The transaction reflects the ongoing strategic shift within the professional services sector, where mid-to-large accounting firms are increasingly accessing private equity capital to fund expansion, technology modernization, and potential acquisitions. This deal activity follows closely on announcements of comparable transactions in the sector, including KKR's valuation of competitor Crowe at more than $3 billion, indicating sustained institutional investor confidence in the accounting and advisory services vertical.
Jeremy Hauk, serving as CEO and Managing Partner of Eide Bailly, is steering the firm through this transaction. The deal has attracted institutional-grade legal representation, with Kirkland & Ellis and Vedder Price advising Reverence Capital Partners on the investment, while BMO and Hunton Andrews Kurth are providing guidance to Eide Bailly. The breadth of legal counsel involved underscores the complexity and materiality of the transaction. The transaction is expected to close following satisfaction of customary closing conditions and receipt of necessary approvals.
Reverence Capital Partners, a private investment firm with a dedicated focus on financial services, is positioning itself as a growth partner for Eide Bailly. The transaction reflects the ongoing strategic shift within the professional services sector, where mid-to-large accounting firms are increasingly accessing private equity capital to fund expansion, technology modernization, and potential acquisitions. This deal activity follows closely on announcements of comparable transactions in the sector, including KKR's valuation of competitor Crowe at more than $3 billion, indicating sustained institutional investor confidence in the accounting and advisory services vertical.
Jeremy Hauk, serving as CEO and Managing Partner of Eide Bailly, is steering the firm through this transaction. The deal has attracted institutional-grade legal representation, with Kirkland & Ellis and Vedder Price advising Reverence Capital Partners on the investment, while BMO and Hunton Andrews Kurth are providing guidance to Eide Bailly. The breadth of legal counsel involved underscores the complexity and materiality of the transaction. The transaction is expected to close following satisfaction of customary closing conditions and receipt of necessary approvals.
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