Andersen Group’s shares jumped about 31% in their debut on the NYSE on Wednesday, valuing the tax advisory firm at $2.3 billion, and CEO Mark Vorsatz said the listing gives the company new currency to pursue deals and fuel expansion. The stock of the company, long-associated with audit quality, opened at $21, compared with the offer price of $16 per share. Andersen raised $176 million in its U.S. initial public offering on Tuesday after selling 11 million shares at the top end of its $14 to $16 marketed range.
“Do I think that we’re going to be an acquirer? Yes!” Vorsatz told, adding that it would be a high priority over the next 30 months and that the company has affiliates “that are very interested in being part of this public company.” After a period of market turbulence sparked by President Donald Trump’s trade policies that dampened new offerings, the U.S. IPO market has regained momentum, supported by Federal Reserve rate cuts that have revived investor confidence and appetite for new listings. “Investors appear to be responding favorably to the company’s debut due to a combination of brand recognition, earnings stability, and reasonable valuation,” said Kat Liu, vice president at IPOX.
Andersen Group emerged from the rubble of global accounting firm Arthur Andersen’s 2002 collapse, following a scandal at the now-defunct energy company Enron. Following its collapse, HSBC bought part of the firm’s tax practice through a new arm, Wealth & Tax Advisory Services, which later split off in a management buyout and was rebranded as Andersen Tax in 2014. “We’ve had very sustained, durable financial performance.” Vorsatz said, “For 23 years, our average revenue growth was 15%. The last 16 years since we’ve been private, our average net income growth was 24%,” he added. The San Francisco, California-based company offers tax, valuation and financial advisory services to individuals and commercial clients.
