stockrowWhat it does
Andersen Group provides tax, valuation and financial advisory services to individuals, wealthy families, businesses and institutional clients. It helps clients plan and comply with taxes, value assets and businesses, and address financial matters. The company was founded in 2002, and Mark Vorsatz is its chief executive and chairman.
Its Private Client Services practice works with individuals and families on matters such as income tax, charitable giving, trusts and estates. Business Tax Services advises companies on tax planning, compliance and reporting, including taxes associated with acquisitions and international operations. Andersen also serves investment funds and provides independent valuations for tax and financial reporting purposes.
The company does not provide audits or related financial-statement attestation services. That decision means it is not subject to the auditor independence rules and other restrictions that affect audit firms when providing non-audit services.
Andersen serves clients from offices across the United States. Its membership in Andersen Global, an association of legally separate firms, gives it access to professionals and local expertise internationally. Andersen has no equity interest in the association or its other member and collaborating firms. The association also provides a channel for referrals to Andersen from overseas firms.
How it makes money
Andersen earns revenue by providing tax and financial advisory services. The substantial majority of its revenue in 2025, 2024 and 2023 was generated on a time-and-materials basis; it also used fixed fees and contingent fees to a lesser extent. Revenue includes professional services revenue and reimbursable expenses, primarily travel and other out-of-pocket costs billed to clients.
For FY2025, revenue was $838.7 million, up 14.6% from FY2024.
Private Client Services was the largest service line, generating $431.8 million in FY2025, or 51.5% of revenue. Its work includes tax compliance, family office advice and estate planning. Business Tax Services generated $291.8 million, or 34.8% of revenue, from work including tax consulting and compliance for businesses.
The alternative investment practice supports funds throughout their life cycles, including fund structures, accounting, administration and compliance. The valuation practice provides analyses for tax, financial reporting, real estate and other purposes. The company says revenue and profitability can vary with the nature of services provided and when its right to receive fees is determined.
Andersen also licenses certain trademarks to Andersen Global member firms and Andersen Consulting partner firms. Each pays an annual license fee of 2% of the increase in its consolidated net revenue while it remains a member or partner. In 2025, over 70% of Andersen’s revenue came from client groups that had done business with it for over three years.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Private Client Services | $431.8 million | 51.5% | 18.4% |
| Business Tax Services | $291.8 million | 34.8% | 11.8% |
| Alternative Investment Funds | $72.9 million | 8.69% | 5.79% |
| Valuation Services | $42.2 million | 5.03% | 14.1% |
Customers and how it sells
Andersen’s clients include individuals, wealthy families, trusts, businesses and institutional clients. Its fund clients include family offices, private equity funds, hedge funds, venture capital funds and real estate funds. Business and fund clients operate across industries including financial services, healthcare, manufacturing, real estate and technology.
During 2025, Andersen served over 12,350 client groups in the United States. A client group can contain multiple engagements, such as several subsidiaries, individuals or trusts. No single client group accounted for more than 1% of revenue in 2025, and the ten largest client groups together accounted for approximately 5%.
Revenue-generating managing directors lead sales and business development. Andersen also receives inquiries and referrals from existing clients, service providers and Andersen Global firms. Its sales efforts include introducing additional services to existing clients.
In FY2025, the West accounted for 42.1% of revenue, the East for 38.9% and the Central region for 19.0%. Regional revenue is assigned using the office of each employee working on an engagement; the client can be in a different region. Andersen had 26 offices in the United States as of December 31, 2025.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| West | $353.3 million | 42.1% | 9.16% |
| East | $325.9 million | 38.9% | 19.7% |
| Central | $159.5 million | 19.0% | 17.6% |
Suppliers and costs
Andersen’s work is delivered by professionals rather than through a manufacturing operation. Compensation is the largest portion of its operating expenses. Its workforce consists predominantly of client-serving professionals, and it had 2,296 employees as of December 31, 2025, including 319 managing directors.
The company invests in training and professional qualifications. It provides employees with resources for professional exams and offers degree programs through a partnership with the University of San Francisco. Those programs and resources are provided at no cost to employees.
Andersen also invests in software and systems supporting tax and valuation services. It works with third-party artificial intelligence firms to access technology for its service lines and uses an AI platform to assist with aspects of its acquisition process. The company identifies controlling costs, planning staff utilization and balancing headcount with client requirements among its operating challenges.
Revenue includes travel and other out-of-pocket expenses that are billable to clients. Working capital management relates primarily to trade receivables, accounts payable and incentive-based compensation, among other operating items.
- Revenue$838.7M
- Cost of revenue−$595.1M
- Selling, general and administrative−$176.7M
- Other operating costs−$202.2M
- Operating income−$135.3M
Competitive position
Andersen competes for advisory work on client relationships, industry knowledge, transaction execution, service range, innovation, reputation and price. Its competitors include global full-service advisory firms Deloitte & Touche LLP, Ernst & Young LLP, KPMG LLP and PricewaterhouseCoopers LLP, as well as Grant Thornton Advisors LLC and RSM US LLP. It also competes with specialized tax and valuation firms, local providers and clients’ in-house tax and accounting departments.
Some competitors have more financial resources, larger professional staffs or broader national or international networks. Others have lower overhead and can offer lower-cost services. Andersen could face additional competition as it expands services, enters new markets or acquires businesses.
Andersen uses its brand, integrated services, professional relationships and membership in Andersen Global to win and serve clients. It also points to its decision not to provide audit services as a distinction from traditional audit firms.
Our reading: Client relationships are a meaningful source of defensibility, supported by revenue from long-standing client groups, although clients can use other advisers or in-house departments. Our reading: The international association adds reach and referrals, but its member firms are independent and Andersen does not own them. Our reading: Avoiding audits removes some independence restrictions, although larger rivals have resources and networks that can offset that distinction.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Deloitte & Touche LLP | Global advisory and consulting services | High |
| Ernst & Young LLP | Global advisory and consulting services | High |
| KPMG LLP | Global advisory and consulting services | High |
| PricewaterhouseCoopers LLP | Global advisory and consulting services | High |
| Grant Thornton Advisors LLC | Advisory and consulting services | Medium |
| RSM US LLP | Advisory and consulting services | Medium |
Growth opportunities
Andersen plans to expand work with existing clients, attract new clients and add services. It intends to recruit experienced professionals where appropriate and introduce additional services to clients it already serves. Client groups generating over $250,000 in annual revenue increased from 629 in 2024 to 687 in 2025.
The company plans to expand in areas including consulting, investment banking, global mobility and international legal services. It also intends to invest in marketing to increase awareness among potential clients. Andersen uses managing directors, client referrals and introductions from Andersen Global firms to develop business.
Acquisitions and business combinations are another part of its strategy. Andersen says it will selectively pursue complementary businesses that fit its culture, including opportunities to expand its geographic footprint and consulting practice. It also plans to expand internationally through closer partnerships with Andersen Global firms and through potential acquisitions and business combinations.
In the first quarter of 2026, Andersen entered definitive agreements to acquire four member firms in Africa and Latin America and combine with one member firm in Canada. The company expected those transactions to close in the second quarter of 2026, subject to closing conditions.
FY2025 revenue grew 14.6%. Growth was supported by customer growth, higher volumes and service-line expansion, and all service lines increased revenue compared with FY2024.
- $639.1MFY2023
- $731.6MFY2024
- $838.7MFY2025
- $980.0MFY2026 guidance
Structural risks
- Andersen may be unable to maintain or increase historical revenue growth or achieve or maintain profitability. Demand, engagement timing, service mix, seasonality and client payments can affect results.
- The company must recruit, train and retain skilled professionals while balancing headcount with client requirements and maintaining utilization. Uneven client demand can make productivity and cost control more difficult.
- Acquisitions and business combinations may not be successfully managed or integrated. Expansion can also bring additional competition as Andersen enters new service areas and geographic markets.
- Regulatory and fiscal policy changes could affect clients and materially reduce Andersen’s revenue. Rapid technological change, including AI adoption, could affect its competitive position and client relationships, while cybersecurity threats increase the difficulty and cost of maintaining security.
- Andersen has identified material weaknesses in internal control over financial reporting. It has begun testing controls, hired additional accounting and reporting personnel and engaged outside assistance to improve its control environment.
- Certain changes of control, a material breach or an early termination election could accelerate payments under the Tax Receivable Agreement.
Bottom line
Our reading
Our reading: Andersen is a people-intensive advisory business built around tax expertise and enduring client relationships, with private clients supplying the largest share of revenue. Our reading: Its international network and non-audit model support its reach, but competition for professionals, integration of acquisitions and weaknesses in financial reporting controls remain important exposures.