Sax, a Top 75 Firm based in Parsippany, New Jersey, has received a minority investment from Cobepa, a private equity firm with offices in Brussels and New York, the latest firm to receive a PE investment.
As is common with PE deals, Sax will restructure to accommodate the investment, providing attest services through Sax LLP, a licensed CPA firm, and advisory, consulting and other professional services through Sax Advisory Group.
The firm plans to preserve its independence without disrupting client engagements or relationships.
Sax plans to pursue strategic acquisitions to expand its footprint along the East Coast, improve its service offerings and drive further technological innovation across its practice areas.
"I think our deal is much different than the other minority deals that have been done in the industry," said Sax Advisory Group CEO Joseph Damiano. "Partnering with our sponsor, we'll be able to invest in our people and ultimately grow our practice to remain competitive in the industry. It's an exciting part of our history at Sax."
The firm dates back to 1956. "We're on the cusp of 70 years old next year in 2026, and I think this is probably the most exciting day of Sax history as we start this journey," Damiano said. "I was elevated to managing partner in 2015 when the firm was about $25 million in revenue. In 2025, we estimate that we will exceed revenues of $130 million. In a relatively short period of just nine years, we went from a top 200 firm to a top 75 . It's been a fun ride to get there, but now we want to take it to the next level. We have seen the industry changing. So many firms are taking private equity deals, but we are still an independent minded firm. Finding a minority partner that was willing to allow us the autonomy to operate as we always have has been the real key to making this deal happen."
As a result of this deal, Sax will be contributing $1 million to its charity, the Sax Foundation. The firm has been heavily involved in fundraising and charitable work and this will help the firm continue in that mission.
"Today marks a historic day in Sax's history with our PE investment that well positions the firm for continued and sustainable growth as we move toward the Top 50 bracket," said Peter J. Scalise, national partner-in-charge of Sax's Federal Tax Credits & Incentives Practice, who has also been spearheading many of the firm's philanthropic efforts. He has been serving on the board of directors for the Sax Charitable Foundation and industry-wide philanthropy with his "go-giver" philosophy forming the USO Accountants Salute The Troops Council; the Alzheimer's Association's Accounting Industry Leadership Council; the Food Bank For New York City's Accountants United to End Food Insecurity Council; and the American Cancer Society's Accountants United to End Cancer Council.
"Our investment in Sax is a direct result of their proven business model, strong leadership team and client-first culture," said Andrew Hollod, managing director North America for Cobepa, in a statement. "We share a common vision for the business and believe that our 'hands-with' approach will unlock compelling opportunities to continue growing the company and expanding its reach while maintaining the same high-quality client service that defines the firm."
The deal was facilitated by Houlihan Lokey, represented by managing director Louis Trimble. Sax was advised by Lowenstein Sandler, led by Nicholas San Filippo IV, and Vedder Price, led by Steven R. Berger. Cobepa was advised by Weil, Gotshal & Manges LLP, led by Luke Laumann.
Financial terms of the deal were not disclosed. Sax ranked No. 66 on Accounting Today's 2025 list of the
Sax is in discussions with three other CPA firms and three wealth management firms.
Damiano declined to specify the amount of the investment from Cobepa, which operates a $5.9 billion fund.
"I think we have a very unique deal that's not similar to any of the other deals," said Damiano. "Part of what we did is we've created a couple of different ways for the younger generation to share this, and we want to make sure that the younger generation that wants to become equity partners in the future have that same ability to become an equity partner as we have."
