The acquisition of Citrin Cooperman by a Blackstone-led investor group marks a significant shift in the music industry's M&A landscape. This move not only highlights the growing importance of valuation and advisory services but also underscores Blackstone's expanding influence in the sector. With an enterprise value exceeding $2 billion, Citrin Cooperman is now poised to leverage Blackstone's resources to enhance its service offerings and technology infrastructure.

Elevating Expertise: Blackstone Empowers Citrin Cooperman for Future Growth

A New Era for Citrin Cooperman

The acquisition of Citrin Cooperman by Blackstone signifies a new chapter for this leading professional services firm. Founded in 1979, Citrin Cooperman has established itself as a premier provider of tax, advisory, and accounting services. The firm's expertise extends to various sectors, including the music industry, where it has become synonymous with top-tier music rights valuation. Barry Massarsky, a renowned expert in music rights valuation, joined Citrin Cooperman in 2022 after the firm acquired his company, Massarsky Consulting. Under Blackstone's ownership, Citrin Cooperman aims to expand its service offerings and invest in cutting-edge technology to deliver unparalleled client experiences.Previously held by New Mountain Capital, Citrin Cooperman saw its enterprise value soar from $500 million in 2021 to over $2 billion under Blackstone's leadership. This substantial increase reflects the firm's strategic importance and growth potential. Alan Badey, CEO of Citrin Cooperman, expressed enthusiasm about this transition, emphasizing Blackstone's commitment to supporting the firm's continued excellence and innovation.

Blackstone's Expanding Footprint in Music

Blackstone's acquisition of Citrin Cooperman is part of a broader strategy to deepen its involvement in the music industry. The private equity giant already controls SESAC Music Group and was instrumental in the take-private deal of Hipgnosis Songs Fund last summer. These acquisitions highlight Blackstone's recognition of the music industry's resilience and profitability. The integration of Citrin Cooperman into Blackstone's portfolio brings valuable expertise in valuing music assets, which could potentially create synergies with existing investments. However, this also raises questions about potential conflicts of interest, particularly regarding Citrin Cooperman's valuation services for Blackstone-controlled music entities. Despite these concerns, Citrin Cooperman remains committed to maintaining its independence and delivering unbiased valuations.

Impact on Industry Transactions

Citrin Cooperman's role in high-profile M&A transactions within the music industry cannot be overstated. Companies such as Downtown Music Holdings, Reservoir, BMG, Sony Music Publishing, Universal Music Publishing, and Warner Chappell Music have relied on Citrin Cooperman's valuation services for critical deals. The firm's extensive experience in evaluating music rights has made it an indispensable partner in the industry's most significant transactions.With Blackstone's backing, Citrin Cooperman is well-positioned to continue its influential role in shaping the future of music rights valuation. The firm's ability to provide comprehensive and accurate valuations will be crucial as the industry navigates evolving business models and market dynamics. Moreover, Citrin Cooperman's expanded resources and technological advancements will enable it to offer even more sophisticated services, further solidifying its reputation as a leader in the field.

Partnerships and Advisers

The acquisition process involved several key advisers, ensuring a smooth transition. Deutsche Bank Securities Inc. served as the financial adviser to Blackstone, while Kirkland & Ellis LLP and Gibson, Dunn & Crutcher LLP provided legal counsel. On the other side, Guggenheim Securities, LLC acted as the lead financial advisor to New Mountain and Citrin Cooperman, with additional support from Koltin Consulting Group. Legal representation for New Mountain and Citrin Cooperman was provided by Simpson Thacher & Bartlett LLP, Zukerman Gore Brandeis & Crossman, LLP, and Hunton Andrews Kurth LLP.These partnerships underscore the complexity and significance of the transaction, highlighting the meticulous planning and coordination required to execute such a high-stakes deal. As Citrin Cooperman embarks on its next phase under Blackstone's ownership, the firm's leadership remains focused on delivering exceptional service and fostering long-term growth.