Andersen Groups Path to the NYSE: IPO Terms and Business Overview (ANDG)

Adam Mitchell
11 hours ago
5 min read

The Andersen Group Inc. IPO marks the public market entry of one of the largest independent tax and advisory platforms in the United States. The company plans to offer 11,000,000 Class A common shares at 14 to 16 dollars per share, with an option for underwriters to purchase an additional 1,650,000 shares. Trading is expected under the symbol NYSE:ANDG.

This article provides a detailed review of Andersen’s operations, financial history, ownership structure, and the key risks and considerations disclosed to potential investors.

Company Operations

Andersen Group Inc. will function as a holding company. After the IPO, its sole material asset will be an indirect 10.1 percent interest in Andersen Tax Holdings LLC through ownership of Class X Umbrella Units of AT Umbrella LLC.

The core operating business is Andersen Tax LLC, which provides tax, valuation, financial advisory, and consulting services. Key practice lines include:

Tax advisory and compliance
Valuation
M&A tax advisory
Transfer pricing
Family office consulting
Real estate consulting
Global mobility advisory
Litigation support
Financial and transaction advisory
Tax technology and automation services

The company uses a low leverage delivery model. Managing directors work directly with clients rather than delegating most work to junior staff. This structure contributes to high levels of client retention, with 74 percent of 2024 revenue coming from clients who had worked with Andersen for more than three years.

Global capabilities are enhanced through Andersen Global, a Swiss verein comprising over 300 member and collaborating firms operating in 182 countries. Andersen Tax LLC is a founding member but remains legally independent from the verein.

Historical Financial Performance

According to the prospectus, Andersen Tax Holdings LLC has delivered long term growth characterized by steady revenue expansion, recurring client relationships, and rising profitability.

Key long term trends include:

Revenue compound annual growth rate of 15 percent from 2003 through 2024.
Net income compound annual growth rate of 24 percent from 2009 through 2024.

Pro Forma Financial Information

The filing provides pro forma adjustments reflecting:

Reorganization into a UP C structure
Issuance of Class A shares at an assumed 15 dollar price
Deduction of underwriting fees and expenses
Application of proceeds to purchase Class X Umbrella Units

These adjustments show the transition from a private partnership controlled entity to a public corporation that consolidates AT Umbrella LLC while allocating the majority of net income to non controlling interests.

Forward Looking Factors and Performance Drivers

Andersen does not publish financial forecasts. However, the Management Discussion and Analysis outlines several drivers expected to influence future performance:

Expansion of diversified practice lines
Demand for high end advisory services among individuals, family offices, funds, and middle market enterprises
Cross selling across service verticals
Increased reliance on tax technology and automation solutions
Continued global expansion through Andersen Global member firms
High client retention supported by direct managing director involvement

These indicators suggest management believes revenue growth and margin stability are achievable.

Ownership Structure and Pre IPO Investors

The company will adopt a dual class structure:

Class A common stock: one vote per share, sold to the public
Class B common stock: ten votes per share, held exclusively by Andersen Aggregator LLC

After the offering:

Class A shareholders will hold 100 percent of the economic interest in Andersen Group Inc.
Aggregator will hold 98.9 percent of the voting power.
Aggregator will own 89.9 percent of the Class X Umbrella Units of AT Umbrella LLC.

Aggregator LLC is owned by current and former managing directors and related parties. There are no outside institutional or venture capital investors disclosed in the provided portion of the prospectus.

Aggregator may exchange Class X Units for Class A shares or cash at a one to one ratio. Each exchange triggers the cancellation of the corresponding Class B shares.

Incoming Investors Through the IPO

The offering is led by major underwriters:

Morgan Stanley
UBS Investment Bank
Deutsche Bank Securities
Truist Securities
Wells Fargo Securities
Baird
William Blair

Up to 7 percent of the offering may be allocated to a directed share program for non employee directors and eligible participants. No cornerstone or anchor investors are listed in the available excerpt.

Key Operational and Structural Risks

The prospectus identifies several risks relevant to prospective investors:

Inflation driven increases in personnel and service delivery costs.
Identified material weaknesses in internal controls, including IT controls and period end review controls.
Client credit risk, though exposure is low due to diversification. As of September 30, 2025, the largest client accounted for 1 percent of receivables and the top 20 accounted for 10 percent.
Restrictions at AT Umbrella LLC may limit distributions that Andersen Group Inc. relies on to pay taxes and expenses.
Voting power is concentrated with Aggregator, limiting public shareholder influence on governance and major corporate decisions.

Key Takeaways for Investors

The data suggests several important considerations:

Andersen enters the public markets with substantial scale, long term revenue growth, and a diversified service platform.
The UP C structure is advantageous for legacy partners but creates complexity for public investors.
Public shareholders will have minimal voting influence due to the dual class structure.
Significant non controlling interests will reduce the portion of consolidated net income attributable to Class A shareholders.
The business demonstrates strong recurring revenue dynamics and high client retention.

Closing Commentary

The Andersen Group IPO brings a well established tax and advisory platform to public investors. With strong long term financial performance and a broad service offering, the company presents a stable operational profile. However, the UP C structure, concentration of voting control, substantial equity based compensation, and non controlling interest allocations represent key considerations for market participants assessing the offering.

FAQ

What stock will trade publicly?

Class A common stock, one vote per share.

Who will control the company after the IPO?

Andersen Aggregator LLC will hold 98.9 percent of voting power through Class B shares.

What business generates revenue?

Andersen Tax LLC and subsidiaries, which provide tax, valuation, consulting, and advisory services.

Where do IPO proceeds go?

To purchase newly issued Class X Umbrella Units from AT Umbrella LLC.

Are there internal control issues disclosed?

Yes. The company identified two material weaknesses relating to IT controls and financial reporting review processes.

Who owns Andersen before the IPO?

Current and former managing directors and related persons through Aggregator LLC.

Does Andersen Global own Andersen?

No. Andersen Global is a Swiss verein and legally separate.

Financial Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Do not rely on statements made within this article or elsewhere on our site. Consult a licensed financial professional before making investment decisions.

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