Catenaa, Monday, December 29, 2025- Andersen Group stock has risen by over 21% since its IPO on December 16, showing investors aren’t concerned about its weak internal accounting controls and disruptions by AI.
The company, two decades after the criminal conviction of its namesake accounting firm, Arthur Andersen, was overturned on appeal, has gained a market cap of $2.8 billion by Monday noon.
Longtime investors are familiar with the adage that they shouldn’t own anything they don’t understand. That is especially apropos for Andersen, which priced its initial public offering on December 16.
The professional services firm, which specializes in tax and accounting services, has a complex corporate structure that prioritizes pre-IPO insiders over public shareholders.
It has been disclosed to have weak internal accounting controls, which is no small irony. And the business model, which relies primarily on hourly billing, could be vulnerable to disruption by artificial intelligence.
Investors aren’t bothered for now. The stock is trading at about $25, up from its $16 IPO price.
The IPO marks a triumph for the former Arthur Andersen partners who founded Andersen Group in 2002 after the longtime auditor for Enron and WorldCom collapsed.
The Supreme Court in 2005 overturned Arthur Andersen’s obstruction-of-justice conviction related to its work for Enron, the failed energy trader. Nine years later, the new firm acquired the rights to the Andersen trademarks and rebranded itself; the firm doesn’t provide audit services.
Andersen Group is a holding company with just one significant asset: an 11% stake in a partnership called AT Umbrella, which owns Andersen Tax and other operating subsidiaries.
Insiders own the other 89% through a holding company called Andersen Aggregator and have 99% of the voting rights in Andersen Group, the public company.
The IPO, which raised about $188 million in net proceeds, was conducted through what is called an Up-C structure, short for “umbrella partnership C corporation.”
