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EisnerAmper, Wipfli said to seek new PE investors; Companies for sale activity picking up

Good morning Hubsters. Michael Schoeck back with you from the New York newsroom.

Dealmakers are cautiously optimistic that deal activity will pick up in the second half of the year. For May, I’m hearing about more companies coming up for sale.

In that vein, we’ll have a look at my latest “On the block” monthly report, which focuses on the certified public accounting or CPA market.

We’ll stay with business services next to highlight an exit of a workplace wellbeing service provider to a Canadian strategic.

And we’ll wrap up today with my weekly companies for sale update, which highlights a Q2 uptick.

But first let’s take a peak at upcoming professional services firms soon to be testing the market.

CPA firms coming to market

Private equity firms have been investing in certified public accounting firms increasingly over the last several years, drawn by predictable revenue, regional and national brand recognition and the potential for add-on deals.

Two more CPA firms are hoping to attract new PE investments later this year, according to confidential sources, PE Hub is the first to report.

Read more on EisnerAmper and Wipfli coming to the market by upgrading to the premium version of the Wire.

Office emotional support

Sticking with B2B services, we have a mid-market exit to highlight. This morning WindRose Health Investors announced the closing of its sale of Workplace Options, a Raleigh, North Carolina-based employee wellbeing services provider, to Telus Health, a division of Canadian strategic Telus, for CAD $500 million ($350 million).

GTCR partnered with Telus to support the acquisition with a $200 million preferred equity commitment.

Upgrade to the premium edition of the Wire to learn more about the deal.

Companies for sale

This year I’ve been briefed on more than 100 companies coming to the market by PE firms, founder-owned companies or strategic carveouts.  At this time last year I had been briefed on 10% more companies coming to market.  

Readers of the premium Wire can access additional companies for sale content, including valuations and investment banks retained.

Got tips on a company coming to market? Shoot me a note at Michael.S@pei.group.

That’s a wrap for me. Keep an eye out for the Europe edition of the Wire tomorrow from Irien Joseph and the US edition from John R Fischer.

Cheers,

Michael

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

Private equity firms are using earnouts to structure acquisitions in Europe amid uncertainty over the impact of US tariffs, while some portfolio companies in the continent adjust their sales pitches as they pivot to different markets, Allan Bertie, head of European investment banking at Raymond James, told PE Hub.

Trilantic Capital Partners, which spun out of the ruins of Lehman Brothers in 2009, is working on a liquidity process that could become a model for firms unable to raise as much capital as they did in the past. (Buyouts)

Astorg, Europe’s 10th-largest private equity firm by fundraising, has executed on a succession plan that will see a 38-year-old top performing partner take over as chief executive. Benjamin Cordonnier, who is head of portfolio performance, becomes CEO and one of two co-managing partners leading the day-to-day operations at the firm, according to a statement. He will lead Astorg alongside partner Judith Charpentier, who is co-head of flagship and head of healthcare. (Private Equity International)

TPG’s Rise Climate strategy and Renaissance Partners have jointly acquired a controlling stake in Italian biostimulants producer SICIT Group. (Agri Investor)

Qarlbo Biodiversity, a unit of the family office of EQT founder Conni Jonsson, has agreed what it believes to be the first ever off-take agreement for voluntary biodiversity credits in the US. (New Private Markets)

BlackRock, the world’s biggest asset manager, has hired Tim Antonelli as managing director and US head of insurance strategy from rival Wellington Management, according to his LinkedIn page. (Private Equity International)

Deals

They said it

“Over the past few years, [WPO] strengthened its global presence and deepened its capabilities as a trusted provider to employers and employees worldwide.”

— David Pontius, partner, WindRose Health Investors, on the mid-market investor’s exit of Workplace Options to Telus.

Today's letter was prepared by Michael Schoeck

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