Armanino LLP, a Top 25 Firm based in San Ramon, California, is expanding its entertainment management practice by adding Royalty Compliance Organization, a music rights and royalty auditing firm
The addition of the two companies, led by Royalty Compliance CEO Wayne Coleman and COO Darla Crain, and Blue Sky Group partners Harlan Hallet and Steve McMillan, enables Armanino to provide the entertainment industry with a variety of services, including traditional business management, tax and audit services, along with more specialized litigation and royalty compliance auditing.
Coleman, Crain and Hallet are joining Armanino as managing directors, and McMillan as a director. A total of 16 employees are also coming on board, with eight from each firm.
The Blue Sky deal also expands Armanino's entertainment practice into Nashville, giving it locations in the country's three main music and entertainment hot spots, including its existing New York City and Los Angeles offices, to serve its growing client base in the entertainment industry.
Armanino's business management team already works with some prominent musicians, entertainers and music publishers in the firm's New York City and Los Angeles offices. The addition of Blue Sky's Nashville office will give it more entree to the country music scene.
"As far as industry-leading experts, we could not be more thrilled with the knowledge and talent that Blue Sky and RCO bring to our team; we know this will be incredibly valuable for our clients," said Craig Manzino, partner in the business management practice at Armanino, in a statement Wednesday. "This will make Armanino one of the only business management groups in the world that will be able to offer the full slate of entertainment services while allowing us to deepen and expand our reach into Nashville, which we view as extremely important for our growth goals."
Financial terms of the deal were not disclosed. Armanino ranked No. 18 on Accounting Today's 2023 list of the Top 100 Firms, with $595 million in annual revenue. The firm has over 220 partners and approximately 2,400 employees.
The deal comes at a time when other accounting firms are expanding their entertainment practices as well. Last year, New York-based Citrin Cooperman acquired
Armanino has been doing some M&A deals outside the music industry as well in recent years, adding
"As the industry standard for royalty audit services, RCO is excited to join Armanino's entertainment practice and tap into the synergies that our firms bring to the table," said Coleman in a statement.
"By combining forces, we will be able to better serve our clients while being able to bring best-in-class offerings to Armanino and Blue Sky's client base," said Crain in a press release.
"Blue Sky, RCO and Armanino share a common vision for the future of entertainment advice and business management service, and believe that we can evolve into the leading business management firm in the country," said Hallet in a news release. "By combining forces, we are only adding to an already successful business practice but now have the benefit of RCO's capabilities and the leverage and resources of Armanino's team. We see this as a major win for the entertainment industry as a whole."
