CPA Network Inc. has joined a sweepstakes to win a $100,000 CPA investment from a private equity firm that has been a pioneer in the space.
The $100 million investment from private equity company CPA Partners is the first in CPA’s history, according to the company, which said in a statement Thursday it will invest in the private equity network to provide CPA executives with expertise in CPM and the broader field.CPA Network is owned by private equity group CPA Group LLC, which owns The CPA Corp., a private firm that is a leading provider of private equity services.
The CPA Networks investment is expected to generate annual revenue of at least $50 million, the company said in its statement.
The investment is the largest in CPO’s history.
“We believe CPA is a strong asset class that has a strong future as a global CPM market leader,” the CPA Investment Committee said in the statement.
“The CPM Network has a long-term view that is aligned with our vision of providing the best CPA services to our clients, and we are excited about the opportunity to invest in a company that will provide CPM to more people in the future.”
The CPO investment comes as the CPO Network has been in the spotlight amid the financial crisis.
The firm’s financials have been questioned, particularly in light of a string of CPA firms having missed earnings.CPM has seen its market value plummet over the past year, as companies in the sector struggle to pay back debt.
The CPMs market value has been driven largely by a shift from private debt to corporate debt, which has driven down their share prices.
The investment comes at a time when many CPA investors are in the midst of a consolidation period.
CPA stock has fallen from more than $400 to less than $40 this year, according for the last three months of the year.
The industry is also seeing record losses for large CPAs such as AIG, Bank of America, and others.
The move by CPA to enter into the CPM network represents the latest sign that the industry is on the cusp of a turnaround, with some CPA players now predicting that CPA will be one of the few high-growth industries.