Show Notes
What decides whether CohnReznick's private-equity-backed purchase of Aldrich works? The episode argues it is not the $108 million in revenue, which already has three public versions, but the 48 partners: whether they stay, what they are paid after the scrape, and whether the EBITDA created by cutting their pay survives. It also covers the APS structure, cross-selling claims and the separate value of the Aldrich Wealth arm.
Listeners learn how to build a partner table, why a 7 to 11 times multiple on scraped EBITDA raises the stakes, how to age WIP against past write-downs, how to set a working-capital peg before busy season, and why AICPA independence rules can cost clients or the deal.
0:00 Why revenue misleads in CPA firm deals 1:21 Private equity and alternative practice structures 2:51 Mapping partners, books and non-solicits 3:56 The partner pay scrape and EBITDA multiples 7:11 WIP, write-downs and the working-capital peg 8:35 AICPA independence rules and private equity
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