Aprio plans to open law firm with Radix Law in Arizona

Aprio, a private equity-funded Top 25 Firm based in Atlanta, is joining with Radix Law in Arizona to form Aprio Legal LLC, which will operate as a law firm in the state.

The move comes a month after New York-based Big Four firm KPMG announced its intention to take advantage of the same Arizona law, creating a subsidiary known as KPMG Law LC by filing an application to become an "alternative business structure" with the Arizona Supreme Court.

With Aprio, clients will be able to consult with tax advisors, CPAs, transaction advisors, wealth advisors, and attorneys at the same firm.

Aprio Legal and Radix Law, separately, are already licensed law firms by Arizona's ABS Program. Aprio received licensing approval in May 2024 from the state. Upon the completion of the combination, both entities will operate as Aprio Legal.

"We are thrilled to be the first national accounting and advisory firm to open an ABS law firm and join forces with Radix Law — a combination we know will be a powerful force in Arizona for entrepreneurs and businesses," said Aprio CEO Richard Kopelman in a statement Wednesday. "At Aprio, we are focused on our commitment to building the firm of the future and reimagining the client experience. Aprio Legal is an important part of that commitment. Our firms are both like-minded and entrepreneurial, and together as Aprio Legal we will continue to pioneer the legal profession."

Radix Law was approved by the Arizona Supreme Court in 2021 to become the first ABS law firm in the U.S. to operate as a multi-lawyer, full-service law firm, combining both lawyer and non-lawyer owners. The firm includes 15 lawyers who offer various legal services, including estate planning, corporate transactions, commercial litigation, real estate and business law.

"This is an incredible leap forward in the evolution of Radix Law and an exciting time for our business as we join forces with Aprio to establish Aprio Legal," said Radix Law CEO and managing partner Andy Kvesic in a statement. "Our clients are our priority, and with Aprio Legal, we will have the added resources to deliver an even more personalized and comprehensive approach to help them grow."

Financial terms of the deal were not disclosed. Aprio ranked No. 25 on Accounting Today's 2024 list of the Top 100 Firms, with $420.79 million in annual revenue, approximately 185 partners and 1,775 employees. 

In the months ahead, the two entities plan to work together to determine the optimal structure for collaboration under the terms of the Arizona ABS program. 

One complication could be Aprio's private equity funding. Aprio received a private equity investment last July from Charlesbank Capital Partners in Boston, and said it would operate an alternative practice structure, as is common when private equity firms invest in accounting firms. Aprio LLP, a licensed CPA firm, will provide attest services, while Aprio Advisory Group LLC, will offer business advisory, tax and other non-attest services. Aprio LLP will operate as a separate legal entity, but under the new structure, partners and professionals will continue to deliver integrated client service.

Even before the PE funding, the firm had completed over 20 mergers and acquisitions since 2017, adding Ridout Barrett & Co. CPAs & Advisors last December, and before that, Antares Group, Culotta, Scroggins, Hendricks & Gillespie, Aronson, Salver & Cook, Gomerdinger & Associates, Tobin & Collins, Squire + Lemkin, LBA Haynes Strand, Leaf Saltzman, RINA and Tarlow and Co.