SOCPA & M/59 gate status
5 / 5 passed
Auditors on MainCo payroll, no sweep, fixed SaaS, stake within 30%, viable MainCo margin.
1A
The recommended structure, locked
Auditors stay on MainCo payroll. ServiceCo bills two fixed commercial schedules. Accord holds 25% of MainCo and 57% of ServiceCo, stapled together.
Combined pre-tax profit
SAR 1,400K
On SAR 5,000K base revenue.
Accord captured profit
51.1%
SAR 715.5K pre-tax
SAR 572.4K net after 20% CIT
At 25% MainCo and 57% ServiceCo equity.
Saudi CPA partner profit
48.9%
SAR 684.5K pre-tax
SAR 667.4K net after 2.5% Zakat
2.5% Zakat against 20% CIT gives the partner 53.8% of net cash.
1B
Five decisions, resolved
| Question | Resolution | Statutory basis | Model evidence |
|---|---|---|---|
| 1Where do the technical auditors sit? | Resolved 100% on MainCo’s GOSI/Qiwa payroll (SAR 1,600K). ServiceCo employs only non-signing operations, IT, finance, HR, leases and Accord OS engineers (SAR 1,400K). | Profession Law M/59 Art. 7(7); Implementing Regs Art. 9 (30% to 50% Saudi technical staff); ISA 230 “prepared by” sign-off. | Gate 1 passes in Presets A and B. |
| 2What are the MSA fee terms, given a 90% profit sweep is not allowed? | Resolved Two non-contingent, benchmarked schedules with no % of audit revenue and no profit sweep. Schedule A, shared back-office: cost + 17.3% on SAR 1,400K = SAR 1,642K a year. Schedule B, Accord OS ISQM 1 platform: fixed annual platform plus per-seat subscription = SAR 900K a year. | ZATCA TP Bylaws Arts. 8, 13(C), 14(C); KSA Tadawul/Nomu Q3 benchmark; Decision 284 Art. 78. | ServiceCo earns SAR 1,142K (81.6% of combined profit); MainCo keeps SAR 258K (18.4%). |
| 3How do we stop the cost-plus AI paradox when Accord OS cuts delivery cost? | Resolved Schedules A and B priced on fixed per-seat and baseline-SLA rate cards (CUP), with MainCo tested as the TNMM tested party. MainCo keeps its benchmarked routine margin; the internal AI productivity gain stays in ServiceCo. | OECD TP Guidelines ¶3.18 (tested party); ZATCA TP Bylaws Art. 8. | At a 30% Accord OS saving: 52.1% Accord share on the fixed card against 46.0% on naive pass-through. |
| 4What equity split gets Accord past 51% without breaching the 30% cap? | Resolved 25% Accord and 75% partner in MainCo, plus an MSA veto. 57% to 64% Accord in ServiceCo, a commercial SJSC with no 30% cap. Shares stapled so neither can be sold alone. | Decision 284 Art. 78(1)(a) cap; Companies Law M/132 Art. 203; SJSC Arts. 151 to 152 (stapling). | 57% ServiceCo gives 51.1% pre-tax. 64% gives 56.8% pre-tax and 51.9% of after-tax cash. |
| 5How do the SiFi and audit-firm referral agreements work? | Resolved Pre-close and third-party firms (UHY, Sadagah before close) pay ACRDP 25% in Year 1: 10% to SiFi, 15% kept. Renewals pay 15%, all kept. Post-close, MainCo passes SiFi’s 10% Year 1 marketing cost (plus a fixed onboarding fee) through ACRDP, so Accord OS is never charged twice. | SOCPA IESBA Code Section 330.5 A1 to A2 (330/5 ت1 to ت2); SOCPA Inquiry #156; written client disclosure under SiFi Annex 1. | SiFi agreement executed 31 October 2026 at 10%. Use the referral calculator in 1D. |
1C
Who owns what and where the money goes
| Entity | SAR of every 100 | Accord ownership | To Accord | To partner |
|---|---|---|---|---|
| MainCo | 18.4 | 25% | 4.6 | 13.8 |
| ServiceCo | 81.6 | 57% | 46.5 | 35.1 |
| Total pre-tax | 100.0 | Blended | 51.1 | 48.9 |
| After 20% CIT and 2.5% Zakat | 88.6 | Net cash | 40.9 | 47.7 |
1D
Test the structure
Load a preset, solve for a target, or change any input. Every figure on this page updates.
Preset ASOCPA-locked (recommended)Audit staff on MainCo GOSI, Schedule A cost + 17.3%, Schedule B fixed SaaS SAR 900K, 25% MainCo and 57% ServiceCo.51.1% Accord
Preset BSOCPA-locked, 64% ServiceCoSame locked structure with 64% ServiceCo equity, so Accord holds a majority of after-tax cash despite 20% CIT against 2.5% Zakat.56.8% Accord
Preset CLeased delivery staff, median feesDelivery staff leased from ServiceCo at cost + 15.8% plus an 8.0% Accord OS revenue fee, 25% MainCo and 67% ServiceCo. Fails gates 1 and 3.51.2% Accord
Preset DLegacy 90/10 profit sweepResidual true-up sweeps profit to ServiceCo at 54% equity. Shown for comparison only: Art. 78 fee-sharing risk.51.1% Accord
Audit staff on MainCo GOSI, Schedule A cost + 17.3%, Schedule B fixed SaaS SAR 900K, 25% MainCo and 57% ServiceCo.
Goal seek
Choose a target, then the lever to adjust.
After-tax share uses total net dividends as its denominator.
Follow the profit
Reconciliation
| Line item | MainCo (professional SJSC) | ServiceCo (SJSC) | Combined group |
|---|---|---|---|
| External client revenue | 5,000.0 | 0.0 | 5,000.0 |
| External operating costs | -2,200.0 | -1,400.0 | -3,600.0 |
| Schedule A base cost | -1,400.0 | 1,400.0 | 0.0 |
| Schedule A markup | -242.2 | 242.2 | 0.0 |
| Schedule B platform fee | -900.0 | 900.0 | 0.0 |
| Offshore subcontract reimbursement | 0.0 | 0.0 | 0.0 |
| Annual rate-card true-up | 0.0 | 0.0 | 0.0 |
| Total MSA fee (subtotal) | -2,542.2 | 2,542.2 | 0.0 |
| Pre-tax profit | 257.8 | 1,142.2 | 1,400.0 |
| Accord pre-tax attribution | 64.5 | 651.1 | 715.5 |
| Saudi partner pre-tax attribution | 193.4 | 491.1 | 684.5 |
| Accord CIT (20%, positive taxable slice) | -12.9 | -130.2 | -143.1 |
| Partner Zakat proxy (2.5% of positive profit) | -4.8 | -12.3 | -17.1 |
| Net distributable result | 240.1 | 999.7 | 1,239.8 |
| Accord net dividend / (funding deficit) | 51.6 | 520.8 | 572.4 |
| Partner net dividend / (funding deficit) | 188.5 | 478.9 | 667.4 |
| 15% output VAT (incl. reverse charge) | 750.0 | 381.3 | 750.0 |
| 15% input VAT (incl. reverse charge) | 381.3 | 75.0 | 75.0 |
| Net VAT payable / (credit) | 368.7 | 306.3 | 675.0 |
| Supplier VAT remitted outside group | 75.0 | 75.0 | |
| Total VAT to ZATCA including supplier | 750.0 | ||
| Net VAT expense (fully recoverable) | 0.0 | 0.0 | 0.0 |
| VAT float on unpaid client invoices | 154.1 | 0.0 | 154.1 |
Client output VAT 750.0 = Firm VAT 368.7 + ServiceCo VAT 306.3 + supplier VAT 75.0. Reverse-charge input and output offset. Float is a cash-timing estimate, not an expense.
SiFi and audit-firm referral calculator
| Flow | Paid to ACRDP | Passed to SiFi | Kept by Accord |
|---|---|---|---|
| Third-party firm, Year 1 (25%) | 250.0 | 100.0 | 150.0 |
| Third-party firm, renewals (15%) | 150.0 | 0.0 | 150.0 |
| Own APS firm, Year 1 (10% pass-through plus onboarding fee) | 100.0 | 100.0 | 0.0 |
| Own APS firm: Accord share of the referred engagement | Engagement profit 180.0 | 92.0 | |
Engagement profit uses the model’s combined margin less SiFi’s 10% and the onboarding fee; Accord’s share uses the live 51.1% blended stake.
Valuation and deal pricing
%
- Implied enterprise value
- SAR 8,400.0K
- Accord bundle (25.0% firm + 57.0% ServiceCo)
- SAR 4,293.0K
- Cash paid at closing
- SAR 4,293.0K
- Effective pre-tax / after-tax multiple
- 6.0x / 7.5x
- Year-1 cash ROIC
- 13.3%
Same multiple applied to each entity’s attributed profit; debt-free / cash-free, EBITDA approximated by operating profit. ROIC = Accord net dividend / closing cash. Deferred consideration is excluded from the denominator; total consideration is shown above.
Model basis
20% CIT applies to Accord’s positive entity-level profit; 2.5% Zakat on the partner’s positive profit is a proxy for the statutory Zakat base. Losses receive no tax benefit. Negative dividends indicate a funding deficit.
Egypt is an external supplier, reimbursed without a second Schedule A markup. Withholding, financing, capex and debt are excluded. VAT assumes full input recovery.
Monte Carlo and sensitivity
How far the 51% outcome moves when inputs change, and which contract terms hold it in place. Computed from the inputs on the workbench.
The cost-plus AI paradox
If Schedule A passes through actual cost, every saving Accord OS creates flows to MainCo, where Accord owns 25%. A fixed rate card keeps the saving in ServiceCo.
| Billing basis | ServiceCo profit | MainCo profit | Accord pre-tax | Accord share |
|---|---|---|---|---|
| No saving (reference) | 1,142.2 | 257.8 | 715.5 | 51.1% |
| Naive pass-through, 30% saving | 1,095.5 | 574.5 | 768.1 | 46.0% |
| Fixed rate card, 30% saving | 1,412.2 | 257.8 | 869.4 | 52.1% |
Tornado sensitivity
Monte Carlo, 4,000 trials
Trials hold the active structure and vary Accord OS saving (0% to 35%), Schedule A markup (12.8% to 17.3%) and referred growth (SAR 0 to 1,500K), at 25% MainCo and 57% ServiceCo equity.
| Schedule A billing basis | P10 | P25 | Median | P75 | P90 | Trials at 51% or more | Median Accord SAR K |
|---|---|---|---|---|---|---|---|
| Naive pass-through | 38.1% | 39.5% | 41.3% | 43.1% | 44.6% | 0.0% | 887.1 |
| Fixed baseline rate card | 40.5% | 42.0% | 44.2% | 46.2% | 47.8% | 0.2% | 949.7 |
Two-way sensitivity: staff on MainCo against Accord OS saving
| Audit staff on MainCo GOSI | No saving | 20% saving, pass-through | 30% saving, pass-through | 20% saving, fixed card | 30% saving, fixed card |
|---|---|---|---|---|---|
| 0% (SAR 0K) | 57.4% | 47.4% | 44.2% | 57.3% | 57.3% |
| 25% (SAR 400K) | 55.9% | 47.5% | 44.6% | 56.1% | 56.2% |
| 50% (SAR 800K) | 54.3% | 47.5% | 45.0% | 54.8% | 55.0% |
| 75% (SAR 1,200K) | 52.7% | 47.5% | 45.5% | 53.4% | 53.6% |
| 100% (SAR 1,600K) | 51.1% | 47.5% | 46.0% | 51.8% | 52.1% |
Transfer pricing benchmark studies
Inspect the evidence behind each intercompany agreement.
Five supplied research studies. Green means inside the supplied range, not regulatory clearance. Counts and percentile bands are supplied, not recomputed; underlying audited cost weights are not provided.
MSA Schedule A : Delivery Staffing, Secondment & Shared Back-Office Markup
Transactional Net Margin Method (TNMM)
Net Cost Plus (NCP % = Operating Profit EBIT / Total Operating Costs)
Master Services Agreement (ServiceCo to Licensed CPA Firm)
Domestic-first compliance & source note
ZATCA Art. 13(C) requires testing domestic Saudi comparables first. Step 1 screens 9 listed KSA IT, software & BPO companies on Tadawul and Nomu (6 accepted, 3 rejected for SOE/telecom control or persistent losses), yielding a domestic KSA interquartile range of 14.1% to 17.3% (median 15.8%). Step 2 expands to 7 live EODHD/SEC EDGAR regional (EGX) and global F&A/IT consulting comparables, yielding a combined IQR of 12.8% to 17.3% (median 15.6%). Any markup between 14.0% and 17.3% sits squarely inside both the domestic KSA and global arm’s-length range.
Supplied research note, not independently endorsed. ZATCA transfer pricing bylaws: domestic-first comparability and documentation must be assessed against actual functions, assets and risks.
| Ticker | Company name | Exchange / source | Country | SIC / GICS code | 2022 PLI | 2023 PLI | 2024 PLI | Weighted NCP % | Weighted OM % | Status | Screening rationale |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 7204.SR | Perfect Presentation for Commercial Services Co. (2P) | Tadawul (KSA Audited IFRS) | Saudi Arabia | Not supplied | 18.4 | 16.7 | 17.0 | 17.3 | 14.8 | Accepted | Independent KSA IT/software development, operation & BPO support provider; 3 yrs positive EBIT. |
| 7200.SR | Al Moammar Information Systems Co. (MIS) | Tadawul (KSA Audited IFRS) | Saudi Arabia | Not supplied | 16.0 | 10.3 | 14.0 | 12.8 | 11.4 | Accepted | Independent KSA IT systems integration, cloud & software implementation provider. |
| 9551.SR | Sure Global Tech Co. | Nomu (KSA Audited IFRS) | Saudi Arabia | Not supplied | 16.8 | 17.5 | 17.6 | 17.3 | 14.8 | Accepted | Independent KSA SME software engineering, AI/digital platforms & IT consulting provider on Nomu. |
| 9557.SR | Edarat Communication & Information Technology Co. | Nomu (KSA Audited IFRS) | Saudi Arabia | Not supplied | 28.1 | 30.7 | 31.2 | 30.4 | 23.3 | Accepted | Independent KSA cloud hosting & managed technology services provider on Nomu. |
| 9538.SR | Naseej for Technology Co. | Nomu (KSA Audited IFRS) | Saudi Arabia | Not supplied | 13.8 | 14.1 | 14.1 | 14.0 | 12.3 | Accepted | Independent KSA enterprise software & workflow platforms provider on Nomu. |
| 9556.SR | KnowledgeNet Co. | Nomu (KSA Audited IFRS) | Saudi Arabia | Not supplied | 17.6 | 11.6 | 13.8 | 14.3 | 12.5 | Accepted | Independent KSA financial-services software & technology implementation provider on Nomu. |
| HURN.US | Huron Consulting Group Inc. | NASDAQ [Live EODHD API] | United States | SIC 8742 | 10.1 | 11.4 | 12.8 | 11.5 | 10.3 | Accepted | Independent technology-enabled financial, ERP & operations consulting provider (SIC 8742). |
| HCKT.US | The Hackett Group, Inc. | NASDAQ [Live EODHD API] | United States | SIC 8742 | 20.0 | 18.2 | 16.6 | 18.2 | 15.4 | Accepted | Independent finance benchmarking, ERP implementation & AI advisory provider (SIC 8742). |
| ICFI.US | ICF International, Inc. | NASDAQ [Live EODHD API] | United States | SIC 8742 | 7.2 | 8.0 | 9.2 | 8.2 | 7.6 | Accepted | Independent IT modernization, analytics & management services provider (SIC 8742). |
| EXLS.US | ExlService Holdings, Inc. | NASDAQ [Live EODHD API] | United States | SIC 7389 | 15.8 | 16.4 | 17.0 | 16.4 | 14.1 | Accepted | Independent finance & accounting operations, data analytics & AI workflow provider (SIC 7389). |
| G.US | Genpact Limited | NYSE [Live EODHD API] | United States / Global | SIC 8721 | 14.3 | 16.4 | 17.7 | 16.1 | 13.9 | Accepted | Independent finance & accounting BPO and digital operations provider (SIC 8721). |
| EPAM.US | EPAM Systems, Inc. | NYSE [Live EODHD API] | United States | SIC 7371 | 13.5 | 12.7 | 14.3 | 13.5 | 11.9 | Accepted | Independent custom software engineering & platform services provider (SIC 7371). |
| FWRY.EGX | Fawry for Banking Technology & Electronic Payments S.A.E. | EGX Egypt [EODHD] | Egypt (MENA) | Not supplied | 25.6 | 41.4 | 53.1 | 43.1 | 30.1 | Accepted | Independent MENA financial software & digital platform provider. |
| 7202.SR | solutions by stc (Arabian Internet & Comm. Services) | Tadawul (KSA Audited IFRS) | Saudi Arabia | Not supplied | 15.7 | 14.9 | 16.0 | 15.5 | 13.4 | Rejected | Rejected: 79% owned subsidiary of stc; fails BvD/OECD independence screen due to captive related-party revenues. |
| 7203.SR | Elm Co. | Tadawul (KSA Audited IFRS) | Saudi Arabia | Not supplied | 30.8 | 33.8 | 35.0 | 33.5 | 25.1 | Rejected | Rejected: 67% owned by PIF; operates exclusive sovereign GovTech concessions (Absher/Muqeem) not comparable to B2B ServiceCo. |
| 7201.SR | Arab Sea Information Systems Co. | Tadawul (KSA Audited IFRS) | Saudi Arabia | Not supplied | -27.0 | -13.9 | 6.7 | -12.1 | -13.8 | Rejected | Rejected: Persistent operating losses in 2 of 3 tested fiscal years (FY2022 to FY2023). |
MSA Schedule B : Accord OS & AI Workflow Platform Licence (Royalty / Per-File Rate Card)
Comparable Uncontrolled Price / Transaction (CUP/CUT) & Per-File Rate Card
Platform & Technology Fee as % of Gross Firm Revenue (or Equivalent Per-File Complexity Rate Card)
Platform Sublicence & Workflow Automation Schedule (ServiceCo to Licensed CPA Firm)
The source labels this a KSA band, but the comparables include foreign platform precedents. Domestic-first eligibility needs validation.
Domestic-first compliance & source note
To avoid SOCPA audit-fee-sharing optics under Saudi Profession Law M/59 Art. 2 and IESBA R410.10 (no contingent audit fees), the Accord OS fee in the MSA is drafted as a Fixed Annual Platform Access Fee + Per-Engagement Complexity-Band Usage Fee (e.g., SAR 3,500 Small/Zakat file, SAR 12,000 Mid-Market Audit file, SAR 25,000 Complex/Multi-branch file). For Transfer Pricing benchmarking, that per-file rate card is tested against CUP/CUT software & practice-platform royalty comparables (5.0% to 12.0% of gross firm revenue, median 8.0%). Because ServiceCo and the Licensed Firm are both Saudi-resident entities, domestic software/service payments between them carry 0% WHT and fully recoverable 15% VAT.
Supplied research note, not independently endorsed. ZATCA transfer pricing bylaws: domestic-first comparability and documentation must be assessed against actual functions, assets and risks.
| Ticker | Company name | Exchange / source | Country | SIC / GICS code | 2022 PLI | 2023 PLI | 2024 PLI | Weighted NCP % | Weighted OM % | Status | Screening rationale |
|---|---|---|---|---|---|---|---|---|---|---|---|
| KPG.AU | Kelly Partners Group Holdings : IP & Central Platform Levy | ASX Filings & Owner’s Manual | Australia / USA | Not supplied | 9.0 | 9.0 | 9.0 | 9.0 | 9.0 | Accepted | Disclosed 9.0% gross revenue levy charged to all 51/49 operating CPA practices (2.5% IP/Tech Licence + 6.5% Central Systems/Services). |
| SEC-EX10-1 | Vertical Enterprise AI & Audit/Tax Automation SaaS White-Label Agreements | SEC EDGAR Exhibit 10 Filings | United States | Not supplied | 10.0 | 12.0 | 12.0 | 11.5 | 11.5 | Accepted | Unredacted B2B vertical workflow & AI automation platform licences with embedded domain templates (10% to 12% of net customer billings). |
| SEC-EX10-2 | Thomson Reuters / Caseware / Wolters Kluwer Enterprise Practice Suite Benchmark | Public Enterprise Pricing Disclosures | Global | Not supplied | 4.5 | 5.2 | 5.8 | 5.2 | 5.2 | Accepted | Third-party cloud audit working-paper, tax engine & practice management stack cost as % of mid-tier firm revenue. |
| SEC-EX10-3 | Healthcare & Legal MSO/APS Practice Management Platform Licences | SEC EDGAR Exhibit 10 Filings | United States | Not supplied | 8.0 | 8.0 | 8.5 | 8.2 | 8.2 | Accepted | Proprietary practice-management & AI billing/workflow technology fee in regulated professional MSO/APS structures. |
| SEC-EX10-4 | Financial & ERP Cloud Platform Sublicence (Proprietary Analytics + Portal) | SEC EDGAR Exhibit 10 Filings | United States | Not supplied | 12.0 | 12.5 | 13.0 | 12.5 | 12.5 | Accepted | Enterprise financial analytics & automated reconciliation platform licence rate. |
| SEC-EX10-5 | Basic Off-the-Shelf Practice Software Licence (No AI / No Workflow Automation) | SEC EDGAR Exhibit 10 Filings | United States | Not supplied | 2.5 | 3.0 | 3.0 | 2.8 | 2.8 | Accepted | Lower-bound basic non-AI document management software licence. |
| SEC-EX10-6 | Full-Stack Proprietary AI Operating System + Client Portal + Working-Paper Engine | SEC EDGAR Exhibit 10 Filings | United States | Not supplied | 14.0 | 15.0 | 15.0 | 14.7 | 14.7 | Accepted | Upper-bound end-to-end proprietary AI operating system replacing manual junior preparation. |
| SEC-REJ-1 | Consumer Mobile App Revenue-Share Store Agreements (30%) | Public Filings | Global | Not supplied | 30.0 | 30.0 | 30.0 | 30.0 | 30.0 | Rejected | Rejected: Consumer distribution marketplace fee; not comparable to B2B professional practice software. |
The source stores royalty, retained-return and spread observations in NCP / OM fields. Those fields are not independently calculated NCP / OM for these studies.
Offshore Delivery Center Subcontracting Markup (Accord Egypt to KSA ServiceCo)
Transactional Net Margin Method (TNMM)
Net Cost Plus (NCP % = EBIT / Total Delivery Center Costs)
Intra-Group Technical & Data Preparation Subcontracting Agreement
Domestic-first compliance & source note
Covers routine offshore data preparation, workpaper formatting, and technical support provided by a non-KSA delivery entity to KSA ServiceCo. Benchmarked at Cost + 10.5% to 15.2% (median 12.5%). Note: cross-border service payments from KSA to Egypt are subject to KSA WHT (5% technical/consulting domestic rate, or KSA-Egypt DTT treatment) and must not dilute APHL’s UAE QFZP software nexus.
Supplied research note, not independently endorsed. ZATCA transfer pricing bylaws: domestic-first comparability and documentation must be assessed against actual functions, assets and risks.
| Ticker | Company name | Exchange / source | Country | SIC / GICS code | 2022 PLI | 2023 PLI | 2024 PLI | Weighted NCP % | Weighted OM % | Status | Screening rationale |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EXLS.US | ExlService Holdings, Inc. (F&A Delivery Centers) | NASDAQ [Live EODHD API] | Global / India / RoW | Not supplied | 15.8 | 16.4 | 17.0 | 16.4 | 14.1 | Accepted | Offshore finance & accounting process delivery centers. |
| G.US | Genpact Limited (F&A Shared Services) | NYSE [Live EODHD API] | Global | Not supplied | 14.3 | 16.4 | 17.7 | 16.1 | 13.9 | Accepted | Global finance, accounting & audit-support delivery operations. |
| CNXC.US | Concentrix Corporation | NASDAQ [Live EODHD API] | Global | Not supplied | 11.3 | 10.2 | 6.6 | 8.9 | 8.1 | Accepted | Global back-office & technical BPO delivery operations. |
| ICFI.US | ICF International, Inc. | NASDAQ [Live EODHD API] | United States | Not supplied | 7.2 | 8.0 | 9.2 | 8.2 | 7.6 | Accepted | Technical & analytical support services. |
| EPAM.US | EPAM Systems, Inc. | NYSE [Live EODHD API] | Global | Not supplied | 13.5 | 12.7 | 14.3 | 13.5 | 11.9 | Accepted | Offshore engineering & technical support centers. |
Licensed CPA Firm Retained Routine Operating Margin (After MSA Fees)
TNMM / Residual Profit Split Sanity Check
Licensed Firm Net Operating Margin (% of Gross Client Revenue Retained)
Residual Licensed Attest & Sign-Off Return (Licensed CPA Firm)
Denominator conflict: the source PLI says % of revenue, while its note and this control use % of combined profit. These are not interchangeable. The band below is a scenario reference, not a validated TP test.
Domestic-first compliance & source note
Under Saudi Companies Law Implementing Regs Art. 78(1)(d) and Profession Law M/59 Art. 209, the Licensed Firm carries statutory sign-off responsibility and must retain a defensible, positive operating margin after paying Partner Signer Salaries and ServiceCo MSA fees. In US public APS precedents (CBIZ CPAs / Mayer Hoffman McCann) the attest firm operates near break-even after partner draws, but for Saudi Art. 78 defensibility and ZATCA TP scrutiny, keeping 7.5% to 14.0% of combined profit (or ~5% to 10% of revenue) inside the Licensed Firm ensures the licensed entity is demonstrably viable and independent.
Supplied research note, not independently endorsed. ZATCA transfer pricing bylaws: domestic-first comparability and documentation must be assessed against actual functions, assets and risks.
| Ticker | Company name | Exchange / source | Country | SIC / GICS code | 2022 PLI | 2023 PLI | 2024 PLI | Weighted NCP % | Weighted OM % | Status | Screening rationale |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CBZ-MHM | CBIZ CPAs P.C. (Mayer Hoffman McCann) Attest Entity Margin Post-ASA | CBIZ SEC Form 10-K / DEF 14A | United States | Not supplied | 5.5 | 6.0 | 6.0 | 5.8 | 5.5 | Accepted | National attest CPA firm operating under ASA with CBIZ Inc. (421 CPA stockholders; retains working-capital cushion & partner compensation). |
| HRB-MGP | McGladrey & Pullen LLP (H&R Block / RSM APS Precedent) | SEC Form 10-K Historical Filings | United States | Not supplied | 7.5 | 8.0 | 8.0 | 7.8 | 7.2 | Accepted | Attest partnership retaining routine partner return after paying administrative & leased-staff fees to HRB Business Services. |
| US-PE-APS | Mid-Market PE-Backed CPA Attest Entities (Citrin / EisnerAmper / CRI Pattern) | AICPA / NASBA / Hunton APS Benchmarks | United States | Not supplied | 8.5 | 9.5 | 10.0 | 9.3 | 8.5 | Accepted | Standard attest-entity retained margin after MSA personnel secondment, lease, IT, and platform charges. |
| ICFI.US | ICF International, Inc. (Regulated Advisory Routine Margin) | NASDAQ [Live EODHD API] | United States | Not supplied | 7.2 | 8.0 | 9.2 | 8.2 | 7.6 | Accepted | Routine prime-contractor margin on regulated compliance engagements. |
| KPG-OPCO | Kelly Partners Operating Practice Retained Partner Pool (Post-9% Central Levy) | ASX Filings (KPG.AU) | Australia / USA | Not supplied | 16.0 | 17.5 | 18.0 | 17.2 | 14.7 | Accepted | Upper-bound retained operating margin where staff remain inside the 51/49 operating practice. |
The source stores royalty, retained-return and spread observations in NCP / OM fields. Those fields are not independently calculated NCP / OM for these studies.
Intercompany Working Capital & Shareholder Loan Spread (Over 3M SAIBOR)
Comparable Uncontrolled Price (CUP) : Credit Spread Benchmark
Spread over 3-Month SAIBOR (Basis Points)
Shareholder Loan / Working Capital Facility (APHL to ACRDP / ServiceCo)
Domestic-first compliance & source note
Head-to-head validation against Grant Thornton’s 15 July 2026 Intercompany Loan Report ($4,500 fee): GT Approach 1 (Capital IQ) accepted 12 bond records across only 8 unique companies (6 Turkish, 3x Kyivstar Ukraine, 1 Armenia, 1 Africa, and only 1 Saudi company: Arabian Centres 4321.SR), yielding Q1 = 4.11%, Median = 5.82%, Q3 = 7.56%. Our live EODHD BB+ to B Corporate Borrower screen accepted 16 unique non-financial companies (zero duplicates), yielding Q1 = 5.08%, Median = 5.84%, Q3 = 6.31% : within 2 bps of GT’s median (5.84% vs 5.82%) with 2x the unique company count (16 vs 8). Combined with GT Approach 2 (6 KSA bank published rates: Q1 = 7.44%, Median = 9.38%, Q3 = 10.94%), our executed 7.50% rate (4.75% SIBOR + 275 bps) is corroborated across both methods.
Supplied research note, not independently endorsed. ZATCA transfer pricing bylaws: domestic-first comparability and documentation must be assessed against actual functions, assets and risks.
| Ticker | Company name | Exchange / source | Country | SIC / GICS code | 2022 PLI | 2023 PLI | 2024 PLI | Weighted NCP % | Weighted OM % | Status | Screening rationale |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ENOG.LSE | Energean Oil & Gas PLC (B, ICR 1.18x) | EODHD API [Live] | MENA (UK) | Not supplied | 6.3 bps | 6.3 bps | 6.3 bps | 6.3 bps | 151.0 bps | Accepted | Live EODHD (GBX hard-currency audited effective borrowing rate 6.26%) : Effective rate 6.26% (SAIBOR +151 bps). |
| 4007.SR | Al Hammadi Holding (BB+, ICR 6.8x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 6.6 bps | 6.6 bps | 6.6 bps | 6.6 bps | 185.0 bps | Accepted | SAR corporate term & working-capital loans (SAIBOR + ~185 bps) : Effective rate 6.60% (SAIBOR +185 bps). |
| 4003.SR | United Electronics Co. (eXtra) (BB+, ICR 5.8x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 6.8 bps | 6.8 bps | 6.8 bps | 6.8 bps | 200.0 bps | Accepted | SAR short-term working capital murabaha (SAIBOR + ~200 bps) : Effective rate 6.75% (SAIBOR +200 bps). |
| HIK.LSE | Hikma Pharmaceuticals PLC (BB, ICR 5.36x) | EODHD API [Live] | MENA (UK) | Not supplied | 6.8 bps | 6.8 bps | 6.8 bps | 6.8 bps | 200.0 bps | Accepted | Live EODHD (GBX hard-currency audited effective borrowing rate 6.75%) : Effective rate 6.75% (SAIBOR +200 bps). |
| 7204.SR | Perfect Presentation for Commercial Services (2P) (BB+, ICR 6.4x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 6.9 bps | 6.9 bps | 6.9 bps | 6.9 bps | 210.0 bps | Accepted | SAR working-capital & project murabaha facilities (SAIBOR + ~210 bps) : Effective rate 6.85% (SAIBOR +210 bps). |
| 4261.SR | Theeb Rent a Car Co. (BB, ICR 4.1x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 7.0 bps | 7.0 bps | 7.0 bps | 7.0 bps | 220.0 bps | Accepted | SAR fleet & corporate term facilities (SAIBOR + ~220 bps) : Effective rate 6.95% (SAIBOR +220 bps). |
| 2081.SR | Alkhorayef Water and Power Technologies Co. (BB, ICR 4.5x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 7.1 bps | 7.1 bps | 7.1 bps | 7.1 bps | 235.0 bps | Accepted | SAR contract & working-capital facilities (SAIBOR + ~235 bps) : Effective rate 7.10% (SAIBOR +235 bps). |
| 7200.SR | Al Moammar Information Systems Co. (MIS) (BB, ICR 4.2x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 7.2 bps | 7.2 bps | 7.2 bps | 7.2 bps | 240.0 bps | Accepted | SAR short/medium-term Islamic bank facilities (SAIBOR + ~240 bps) : Effective rate 7.15% (SAIBOR +240 bps). |
| 4262.SR | Lumi Rental Co. (BB-, ICR 3.2x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 7.4 bps | 7.4 bps | 7.4 bps | 7.4 bps | 260.0 bps | Accepted | SAR corporate revolving & term facilities (SAIBOR + ~260 bps) : Effective rate 7.35% (SAIBOR +260 bps). |
| 4322.SR | Retal Urban Development Co. (BB-, ICR 2.8x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 7.5 bps | 7.5 bps | 7.5 bps | 7.5 bps | 270.0 bps | Accepted | SAR corporate & project financing facilities (SAIBOR + ~270 bps) : Effective rate 7.45% (SAIBOR +270 bps). |
| 1810.SR | Seera Group Holding (BB-, ICR 2.9x) | Tadawul Audited IFRS | Saudi Arabia | Not supplied | 7.6 bps | 7.6 bps | 7.6 bps | 7.6 bps | 285.0 bps | Accepted | SAR corporate credit facilities (SAIBOR + ~285 bps) : Effective rate 7.60% (SAIBOR +285 bps). |
| 4321.SR | Arabian Centres Co. (Cenomi Centers) (B+, ICR 1.6x) | Tadawul Audited IFRS (also in GT #10) | Saudi Arabia | Not supplied | 8.5 bps | 8.5 bps | 8.5 bps | 8.5 bps | 375.0 bps | Accepted | SAR corporate sukuk & murabaha facilities (only Saudi company GT included) : Effective rate 8.50% (SAIBOR +375 bps). |
| HTWS.LSE | Helios Towers Plc (B+, ICR 1.6x) | EODHD API [Live] | MENA (UK) | Not supplied | 9.3 bps | 9.3 bps | 9.3 bps | 9.3 bps | 458.0 bps | Accepted | Live EODHD (GBX hard-currency audited effective borrowing rate 9.33%) : Effective rate 9.33% (SAIBOR +458 bps). |
| AAF.LSE | Airtel Africa Plc (BB-, ICR 2.7x) | EODHD API [Live] | MENA (UK) | Not supplied | 12.3 bps | 12.3 bps | 12.3 bps | 12.3 bps | 751.0 bps | Accepted | Live EODHD (GBX hard-currency audited effective borrowing rate 12.26%) : Effective rate 12.26% (SAIBOR +751 bps). |
| IDHC.LSE | Integrated Diagnostics Holdings PLC (BB+, ICR 10.19x) | EODHD API [Live] | MENA (UK) | Not supplied | 12.9 bps | 12.9 bps | 12.9 bps | 12.9 bps | 817.0 bps | Accepted | Live EODHD (USD hard-currency audited effective borrowing rate 12.92%) : Effective rate 12.92% (SAIBOR +817 bps). |
| CACI.US | CACI International Inc (BB, ICR 4.27x) | EODHD Fundamentals API [Live] | USA | Not supplied | 4.0 bps | 4.0 bps | 4.0 bps | 4.0 bps | -75.0 bps | Accepted | Live EODHD FY2026 audited effective interest rate (Int Exp / Total Debt = 4.00%, Debt/Assets 45.6%, Spread vs 4.75% SIBOR: -75 bps). |
| BAH.US | Booz Allen Hamilton Holding (BB, ICR 5.61x) | EODHD Fundamentals API [Live] | USA | Not supplied | 4.5 bps | 4.5 bps | 4.5 bps | 4.5 bps | -29.0 bps | Accepted | Live EODHD FY2026 audited effective interest rate (Int Exp / Total Debt = 4.46%, Debt/Assets 55.7%, Spread vs 4.75% SIBOR: -29 bps). |
| SAIC.US | Science Applications International Corporation Common Stock (BB-, ICR 3.88x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.0 bps | 5.0 bps | 5.0 bps | 5.0 bps | 24.0 bps | Accepted | Live EODHD FY2026 audited effective interest rate (Int Exp / Total Debt = 4.99%, Debt/Assets 50.5%, Spread vs 4.75% SIBOR: +24 bps). |
| KBR.US | KBR Inc (BB-, ICR 3.59x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.1 bps | 5.1 bps | 5.1 bps | 5.1 bps | 31.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 5.06%, Debt/Assets 47.4%, Spread vs 4.75% SIBOR: +31 bps). |
| DXC.US | DXC Technology Co (B, ICR 1.19x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.1 bps | 5.1 bps | 5.1 bps | 5.1 bps | 34.0 bps | Accepted | Live EODHD FY2026 audited effective interest rate (Int Exp / Total Debt = 5.09%, Debt/Assets 32.9%, Spread vs 4.75% SIBOR: +34 bps). |
| J.US | Jacobs Solutions Inc. (BB, ICR 5.92x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.4 bps | 5.4 bps | 5.4 bps | 5.4 bps | 63.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 5.38%, Debt/Assets 24.1%, Spread vs 4.75% SIBOR: +63 bps). |
| ACM.US | Aecom Technology Corporation (BB, ICR 5.57x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.5 bps | 5.5 bps | 5.5 bps | 5.5 bps | 73.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 5.48%, Debt/Assets 27.6%, Spread vs 4.75% SIBOR: +73 bps). |
| MMS.US | Maximus Inc (BB+, ICR 6.86x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.8 bps | 5.8 bps | 5.8 bps | 5.8 bps | 107.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 5.82%, Debt/Assets 35.5%, Spread vs 4.75% SIBOR: +107 bps). |
| CBZ.US | CBIZ Inc (B+, ICR 2.18x) | EODHD Fundamentals API [Live] | USA | Not supplied | 5.9 bps | 5.9 bps | 5.9 bps | 5.9 bps | 111.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 5.86%, Debt/Assets 41.5%, Spread vs 4.75% SIBOR: +111 bps). |
| TASK.US | Taskus Inc (BB+, ICR 7.68x) | EODHD Fundamentals API [Live] | USA | Not supplied | 6.2 bps | 6.2 bps | 6.2 bps | 6.2 bps | 143.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 6.18%, Debt/Assets 28.3%, Spread vs 4.75% SIBOR: +143 bps). |
| HURN.US | Huron Consulting Group Inc (BB, ICR 5.83x) | EODHD Fundamentals API [Live] | USA | Not supplied | 6.2 bps | 6.2 bps | 6.2 bps | 6.2 bps | 149.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 6.24%, Debt/Assets 35.9%, Spread vs 4.75% SIBOR: +149 bps). |
| CNXC.US | Concentrix Corporation (B+, ICR 2.1x) | EODHD Fundamentals API [Live] | USA | Not supplied | 6.3 bps | 6.3 bps | 6.3 bps | 6.3 bps | 151.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 6.26%, Debt/Assets 43.1%, Spread vs 4.75% SIBOR: +151 bps). |
| NVEE.US | NV5 Global Inc (BB-, ICR 2.53x) | EODHD Fundamentals API [Live] | USA | Not supplied | 6.5 bps | 6.5 bps | 6.5 bps | 6.5 bps | 170.0 bps | Accepted | Live EODHD FY2024 audited effective interest rate (Int Exp / Total Debt = 6.45%, Debt/Assets 20.2%, Spread vs 4.75% SIBOR: +170 bps). |
| KPG.AU | Kelly Partners Group Holdings Ltd (BB-, ICR 3.57x) | EODHD Fundamentals API [Live] | Australia | Not supplied | 7.0 bps | 7.0 bps | 7.0 bps | 7.0 bps | 222.0 bps | Accepted | Live EODHD FY2026 audited effective interest rate (Int Exp / Total Debt = 6.97%, Debt/Assets 50.7%, Spread vs 4.75% SIBOR: +222 bps). |
| TTEC.US | TTEC Holdings Inc (B, ICR 1.34x) | EODHD Fundamentals API [Live] | USA | Not supplied | 7.2 bps | 7.2 bps | 7.2 bps | 7.2 bps | 242.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 7.17%, Debt/Assets 66.7%, Spread vs 4.75% SIBOR: +242 bps). |
| GLOB.US | Globant SA (BB, ICR 4.23x) | EODHD Fundamentals API [Live] | USA | Not supplied | 8.6 bps | 8.6 bps | 8.6 bps | 8.6 bps | 382.0 bps | Accepted | Live EODHD FY2025 audited effective interest rate (Int Exp / Total Debt = 8.57%, Debt/Assets 14.3%, Spread vs 4.75% SIBOR: +382 bps). |
| GT-CIQ-1 | Bilkom Bilisim Hizmetleri A.S. (#1, BB+, 1Yr) | GT Report (S&P Capital IQ) | Turkey | Not supplied | 3.1 bps | 3.1 bps | 3.1 bps | 3.1 bps | -162.0 bps | Accepted | GT Capital IQ Approach 1 (duplicate issuer 1 of 2; Refinitiv FX-adjusted from 5.46%). |
| GT-CIQ-2 | Kyivstar Group Ltd. (#1, BB-, 3.5Yr) | GT Report (S&P Capital IQ) | Ukraine / NL | Not supplied | 3.4 bps | 3.4 bps | 3.4 bps | 3.4 bps | -137.0 bps | Accepted | GT Capital IQ Approach 1 (triplicate issuer 1 of 3; Refinitiv adjusted from 6.45%). |
| GT-CIQ-3 | Kyivstar Group Ltd. (#2, BB-, 1Yr) | GT Report (S&P Capital IQ) | Ukraine / NL | Not supplied | 4.0 bps | 4.0 bps | 4.0 bps | 4.0 bps | -75.0 bps | Accepted | GT Capital IQ Approach 1 (triplicate issuer 2 of 3; Refinitiv adjusted from 7.01%). |
| GT-CIQ-4 | Otokoç Otomotiv Ticaret A.S. (BB+, 1Yr) | GT Report (S&P Capital IQ) | Turkey | Not supplied | 4.2 bps | 4.2 bps | 4.2 bps | 4.2 bps | -60.0 bps | Accepted | GT Capital IQ Approach 1 (Refinitiv adjusted from 7.30%). |
| GT-CIQ-5 | Bilkom Bilisim Hizmetleri A.S. (#2, BB+, 6Mo) | GT Report (S&P Capital IQ) | Turkey | Not supplied | 4.9 bps | 4.9 bps | 4.9 bps | 4.9 bps | 15.0 bps | Accepted | GT Capital IQ Approach 1 (duplicate issuer 2 of 2; Refinitiv adjusted from 7.57%). |
| GT-CIQ-6 | Anadolu Efes Biracilik (IBSE:AEFES, BB, 1Yr) | GT Report (S&P Capital IQ) | Turkey | Not supplied | 5.3 bps | 5.3 bps | 5.3 bps | 5.3 bps | 58.0 bps | Accepted | GT Capital IQ Approach 1 (Refinitiv adjusted from 8.90%). |
| GT-CIQ-7 | Kyivstar Group Ltd. (#3, BB-, 1Yr) | GT Report (S&P Capital IQ) | Ukraine / NL | Not supplied | 6.3 bps | 6.3 bps | 6.3 bps | 6.3 bps | 155.0 bps | Accepted | GT Capital IQ Approach 1 (triplicate issuer 3 of 3; Refinitiv adjusted from 10.01%). |
| GT-CIQ-8 | Arçelik Anonim Sirketi (IBSE:ARCLK, B+, 2Yr) | GT Report (S&P Capital IQ) | Turkey | Not supplied | 6.4 bps | 6.4 bps | 6.4 bps | 6.4 bps | 161.0 bps | Accepted | GT Capital IQ Approach 1 (Refinitiv adjusted from 10.35%). |
| GT-CIQ-9 | Axian Telecom Holding PLC (BB-, 5Yr) | GT Report (S&P Capital IQ) | Mauritius | Not supplied | 7.3 bps | 7.3 bps | 7.3 bps | 7.3 bps | 250.0 bps | Accepted | GT Capital IQ Approach 1 (Refinitiv adjusted from 11.97%). |
| GT-CIQ-10 | Arabian Centres Co. / Cenomi (SASE:4321, B+, 6Yr) | GT Report (S&P Capital IQ) | Saudi Arabia | Not supplied | 8.5 bps | 8.5 bps | 8.5 bps | 8.5 bps | 375.0 bps | Accepted | GT Capital IQ Approach 1 : ONLY Saudi issuer in GT’s 12 records (Refinitiv adjusted from 12.59%). |
| GT-CIQ-11 | SETUR Servis Turistik A.S. (BB+, 1Yr) | GT Report (S&P Capital IQ) | Turkey | Not supplied | 8.9 bps | 8.9 bps | 8.9 bps | 8.9 bps | 414.0 bps | Accepted | GT Capital IQ Approach 1 (Refinitiv adjusted from 12.90%). |
| GT-CIQ-12 | ASCE Group OJSC (BB-, 1Yr) | GT Report (S&P Capital IQ) | Armenia | Not supplied | 14.0 bps | 14.0 bps | 14.0 bps | 14.0 bps | 921.0 bps | Accepted | GT Capital IQ Approach 1 (Refinitiv adjusted from 15.98%). |
The source stores royalty, retained-return and spread observations in NCP / OM fields. Those fields are not independently calculated NCP / OM for these studies.
Public accounting APS explorer
Compare fee mechanics, ownership and the economics of listed peers.
| Firm | Exchange | Structure | Fiscal year | Revenue (m) | EBITDA (m) | Margin | EV / EBITDA snapshot |
|---|---|---|---|---|---|---|---|
| CBIZ, Inc. + CBIZ CPAs P.C. (fka Mayer Hoffman McCann) + Marcum LLP | NYSE: CBZ | Pure Two-Entity Alternative Practice Structure (0% Equity in Attest Firm; 100% Ownership of Non-Attest ServiceCo + Long-Term ASA) | 2025 | 2,758.0 USD | 366.3 | 13.3% | 12.63x |
| Kelly Partners Group Holdings Limited | ASX: KPG | 51/49 Partner-Owner-Driver (POD) Roll-Up + Mandatory 9% Gross Revenue Central IP & Services Levy | 2026 | 159.2 AUD | 46.0 | 28.9% | 7.16x |
| H&R Block, Inc. (RSM McGladrey / McGladrey & Pullen APS Precedent) | NYSE: HRB | Pioneer US Corporate APS (1999 to 2011 RSM McGladrey Precedent; Current Wave / Block Advisors Platform) | 2026 | 3,945.4 USD | 1,056.9 | 26.8% | 7.03x |
| Resources Connection, Inc. (RGP : ex-Deloitte Spin-Out) | NASDAQ: RGP | Pure Non-Attest Accounting Execution, Finance Transformation & Secondment Platform | 2026 | 452.0 USD | -27.9 | -6.2% | 9.71x |
The public-firm summary labels several latest observations as FY2025; the raw history dates them FY2026. This table follows the raw fiscal-year labels and does not mix years or currencies.
Listed financial performance
CBIZ Inc / USD millions except percentages. Source: saved EODHD fundamentals, 2 November 2026.
| Fiscal year | Revenue (m) | EBITDA (m) | EBIT (m) | EBITDA margin | EV / EBITDA multiple |
|---|---|---|---|---|---|
| 2022 | 1,412.0 | 182.4 | 168.3 | 12.9% | Not supplied historically |
| 2023 | 1,591.2 | 222.7 | 165.2 | 14.0% | Not supplied historically |
| 2024 | 1,813.5 | 140.3 | 73.7 | 7.7% | Not supplied historically |
| 2025 | 2,758.0 | 366.3 | 234.0 | 13.3% | Not supplied historically |
EV / EBITDA snapshot: 12.63x. Historical enterprise values were not supplied; the current multiple is not backfilled into prior years. Currency follows the raw EODHD record.
CBIZ, Inc. + CBIZ CPAs P.C. (fka Mayer Hoffman McCann) + Marcum LLP
NYSE: CBZ / United States
- Structure
- Pure Two-Entity Alternative Practice Structure (0% Equity in Attest Firm; 100% Ownership of Non-Attest ServiceCo + Long-Term ASA)
- Licensed entity ownership
- 0% owned by CBIZ, Inc. : 100% owned by 421 licensed CPA stockholders (as of Dec 31, 2025, 11-member CPA board; zero overlap with CBIZ senior officers).
- ServiceCo ownership
- 100% public shareholders (NYSE: CBZ; Marcum partners received 13.6M CBZ shares = $934.7M + $1,063.0M cash in Nov 1, 2024 merger, delivered in monthly installments over 36 months).
- Fee mechanism
- Administrative Service Agreement (ASA, 25+ year history): CBIZ leases all professional staff, office space, IT/computer equipment, bookkeeping, marketing, and admin support to CBIZ CPAs P.C. (and Myers & Stauffer LC, 43 CPA members) in exchange for an administrative service fee (~85% to 90% of attest gross collections).
- Consolidation
- Does NOT consolidate CBIZ CPAs P.C. under US GAAP VIE rules; instead, CBIZ records the ASA fees earned from CBIZ CPAs P.C. directly as CBIZ revenue, and holds $21.7M in working-capital notes receivable from CBIZ CPAs P.C.
- Licensed / non-licensed split
- Attest (audits, reviews, PCAOB/SEC opinions) sits strictly in CBIZ CPAs P.C.; Tax, advisory, valuation, benefits/insurance, and all technology/staffing sit in CBIZ, Inc. (Marcum Advisory Group LLC).
- Independence & history
- SEC Staff treats CBIZ, Inc. as an ’associated entity’ of CBIZ CPAs P.C. under Regulation S-X; Marcum merger triggered SEC/PCAOB conflict checks where CBIZ had to terminate prohibited non-audit services to Marcum SEC audit clients.
- Supplied implication for Accord
- Proves a ServiceCo can capture ~85 to 90% of attest economics purely via a leased-staff + technology + facilities ASA without consolidating the CPA firm, AND shows how M&A splits the target at closing into (1) Non-Attest Assets to ServiceCo and (2) Attest Assets to Licensed Firm.
Kelly Partners Group Holdings Limited
ASX: KPG / Australia / USA / Hong Kong
- Structure
- 51/49 Partner-Owner-Driver (POD) Roll-Up + Mandatory 9% Gross Revenue Central IP & Services Levy
- Licensed entity ownership
- 51% owned by listed parent (KPGH) / 49% retained by local operating CPA partners (’Partner-Owner-Drivers’) across 43+ offices.
- ServiceCo ownership
- 100% owned by listed parent (KPGH) : houses central management, proprietary ’KPG Intelligence’ AI/software stack, and a 1,150-seat offshore BPO hub.
- Fee mechanism
- Two-tier extraction: (1) Mandatory 9.0% of Gross Revenue central levy charged off the top of every operating practice (split explicitly into a 6.5% Central Services Fee for HR/IT/marketing/admin + a 2.5% IP & Software Licence Fee), PLUS (2) 51% of remaining operating profit via equity dividends.
- Consolidation
- Consolidates 100% of revenue and EBITDA of all 51%-owned operating practices under IFRS 10, deducting the 49% partner share as Non-Controlling Interest (NCI) on the second bottom line.
- Licensed / non-licensed split
- Because Australia (and KPG’s US non-attest/tax focus) permits 51% corporate ownership of tax/accounting practices, KPG holds 51% directly in each practice while centralizing IP, software, and offshore BPO in the parent.
- Independence & history
- Acquires SME firms at 4.0x to 6.0x EBIT using OpCo-level ring-fenced debt repaid over 4 to 5 years from the target’s own cash flows; expands EBITDA margins from ~18% industry average to 30%+ via the central platform and offshore BPO.
- Supplied implication for Accord
- Directly validates Accord’s playbook: combining a top-line Platform/IP + Central Services fee (9% of gross revenue = ~30% of pre-fee EBITDA) with equity ownership lifts parent effective economics well above the raw equity percentage while expanding firm EBITDA margins from ~18% to ~30%.
H&R Block, Inc. (RSM McGladrey / McGladrey & Pullen APS Precedent)
NYSE: HRB / United States
- Structure
- Pioneer US Corporate APS (1999 to 2011 RSM McGladrey Precedent; Current Wave / Block Advisors Platform)
- Licensed entity ownership
- 0% equity in McGladrey & Pullen LLP (remained 100% partner-owned CPA partnership during the 1999 to 2011 APS).
- ServiceCo ownership
- 100% owned by H&R Block (RSM McGladrey, Inc. acquired non-attest tax, consulting, and operational infrastructure).
- Fee mechanism
- Administrative Services Agreement + Personnel Lease + Brand/Network Royalty: RSM McGladrey leased staff and infrastructure to McGladrey & Pullen LLP.
- Consolidation
- Consolidated 100% of RSM McGladrey, Inc. (ServiceCo + non-attest advisory); did not consolidate the attest partnership.
- Licensed / non-licensed split
- Historical cautionary lesson: in 2011, disputes over the MSA fee formula, capital investment, and partner compensation between H&R Block and the McGladrey & Pullen CPA partners led McGladrey partners to threaten non-renewal of the MSA, forcing H&R Block to sell RSM McGladrey back to the CPA partnership for $610M.
- Independence & history
- Created the modern regulatory blueprint accepted by the AICPA and State Boards of Accountancy for all post-2021 PE APS transactions.
- Supplied implication for Accord
- The McGladrey divorce proves why Accord’s 3 structural protections are non-negotiable: (1) Accord must hold 25% to 30% direct equity INSIDE the Licensed Firm with a Shareholder Reserved Matter veto over MSA termination/amendment, (2) shares of the Licensed Firm and ServiceCo must be stapled under SJSC Arts. 151 to 152, and (3) CPA partners must hold meaningful rollover equity (e.g. 46% in ServiceCo) so both sides eat from the same economic pot.
Resources Connection, Inc. (RGP : ex-Deloitte Spin-Out)
NASDAQ: RGP / United States / Global
- Structure
- Pure Non-Attest Accounting Execution, Finance Transformation & Secondment Platform
- Licensed entity ownership
- 0% : Deliberately spun out of Deloitte in 1996 to 1999 as a non-CPA corporate entity so it could serve Big-4 audit clients without independence conflicts.
- ServiceCo ownership
- 100% public shareholders (NASDAQ: RGP).
- Fee mechanism
- Time-and-materials secondment and fixed-scope ERP/finance transformation contracts (gross margin ~38% to 40%, SG&A ~29%, EBITDA margin ~9% to 11%).
- Consolidation
- 100% consolidated commercial corporation.
- Licensed / non-licensed split
- Performs internal audit co-sourcing, technical accounting (IFRS/GAAP), close remediation, and ERP implementation under client management direction : never signs audit opinions.
- Independence & history
- Demonstrates the standalone economics of a pure staffing/secondment ServiceCo when it does NOT own proprietary software or an exclusive captive CPA firm.
- Supplied implication for Accord
- Shows why a pure staffing/secondment ServiceCo only earns ~9% to 12% EBITDA margins (Cost + 10% to 15%), whereas pairing staffing with a proprietary AI platform licence (Accord OS) and an exclusive CPA firm MSA captures 25% to 35%+ margins.
PE-backed APS platforms
Citrin Cooperman
New Mountain Capital (Nov 2021 @ ~$500M EV / ~11x EBITDA) to Blackstone (Jan 2025 @ ~$2.0B EV / ~15x EBITDA)
Reported revenue scale: $350M (2021) to $850M+ (2025)
Classic PE APS: ’Citrin Cooperman Advisors LLC’ (PE-controlled ServiceCo + Tax/Advisory) & ’Citrin Cooperman & Company, LLP’ (100% CPA-partner-owned Attest LLP). Linked by a 20 to 30 year MSA with automatic renewals, non-compete covenants, and shared partner equity in the parent.
First PE-to-PE flip in US accounting history. Partners rolled ~30% to 40% equity into the parent ServiceCo/HoldCo; 15+ tuck-in acquisitions executed at 6x to 9x EBITDA and re-rated to 15x at the Blackstone exit.
Baker Tilly US + Moss Adams
Hellman & Friedman + Valeas Capital Partners (Feb 2024 @ ~$1B+ investment; combined with Moss Adams Jun 2025 to form #6 US CPA firm)
Reported revenue scale: ~$3.0B+ combined
’Baker Tilly Advisory Group, LP’ (PE-backed non-attest & ServiceCo) + ’Baker Tilly US, LLP’ (CPA-owned attest partnership). All non-attest partners, tax, consulting, technology, and admin personnel transferred to Advisory Group LP.
Majority PE control of Advisory Group LP with significant partner equity rollover; MSA prices leased audit staff at Cost + arm’s-length mark-up plus technology/brand royalty.
Grant Thornton US
New Mountain Capital (majority) + CDPQ + OA Private Capital (Closed May 2024)
Reported revenue scale: $2.36B (FY2023)
’Grant Thornton Advisors LLC’ (PE-controlled non-attest & infrastructure entity) + ’Grant Thornton LLP’ (licensed CPA attest firm).
Implied ~$4B to $5B enterprise valuation (~12x to 14x adjusted post-carveout EBITDA).
CohnReznick
Apax Partners; supplied disclosure: 51% non-attest, February 2025
Reported revenue scale: $1.12B
Exact 51% Investor / 49% Partner split in the non-attest ServiceCo/Advisory entity alongside a partner-owned Attest LLP under a long-term MSA.
Mirrors Accord’s 54/46 ServiceCo target: sponsors take a 51% majority in ServiceCo while partners retain 49% of ServiceCo so partners are economically aligned with growing ServiceCo’s EBITDA.
Carr, Riggs & Ingram
Centerbridge + Bessemer Venture Partners; supplied disclosure: 51%, November 2024
Reported revenue scale: $455M
Exact 51% Investor / 49% Partner split in the non-attest ServiceCo/Advisory entity alongside a partner-owned Attest LLP under a long-term MSA.
Mirrors Accord’s 54/46 ServiceCo target: sponsors take a 51% majority in ServiceCo while partners retain 49% of ServiceCo so partners are economically aligned with growing ServiceCo’s EBITDA.
These are supplied research snapshots. Kelly Partners’ disclosed 9% levy is modeled exactly (6.5% central services + 2.5% IP); CBIZ’s 85 to 90% ASA is a disclosed range, modeled at an editable midpoint. HRB has no supplied fee rate. Foreign ownership and fee arrangements do not establish Saudi eligibility.
SOCPA and legal rules
The five inspection gates every structure must pass, the four agreements that implement them, and the referral-fee rule.
Five SOCPA and Companies Law gates
- Pass
Technical auditors on MainCo GOSI
M/59 Art. 7(7), Implementing Regs Art. 9, ISA 230
100% of the SAR 1,600K audit field payroll sits on MainCo’s GOSI/Qiwa roster.
- Pass
No residual profit sweep
Decision 284 Art. 78(1)(b) and (d)
True-up is off. ServiceCo bills defined schedules only; MainCo keeps residual upside and downside.
- Pass
No % of audit revenue fees
M/59 Art. 2, IESBA R410.10
Schedule B is a fixed subscription of SAR 900K a year.
- Pass
Unlicensed stake within 30%
Decision 284 Art. 78(1)(a)
Accord’s unlicensed voting stake in MainCo is 25.0%.
- Pass
MainCo keeps a viable margin
Companies Law M/132 Art. 209 liability
MainCo retains SAR 258K, 5.2% of revenue (floor 5%).
Referral fees: SOCPA IESBA Code Section 330.5 A1 to A2 and Inquiry #156
English
330.5 A1: A self-interest threat to compliance with the principles of objectivity and professional competence and due care is created if a professional accountant pays or receives a referral fee or receives a commission relating to a client. 330.5 A2: Examples of actions that might be safeguards to address such a self-interest threat include: Disclosing to clients any referral fees or commission arrangements paid to, or received from, another professional accountant or third party for recommending services or products. (SOCPA Inquiry #156, 14 Aug 2023 / 17 Jan 2026: directs auditors to Section 330 and its application material.)
Accord’s reading (paraphrase): paying or receiving a referral fee creates a self-interest threat to objectivity, not a prohibition. Written disclosure of the arrangement to the client, before the engagement, addresses the threat. SiFi Annex 1 is that disclosure.
العربية
330/5 ت1: ينشأ تهديد بسبب المصلحة الشخصية يمس الالتزام بمبدأي الموضوعية والكفاءة المهنية والعناية الواجبة إذا دفع أو حصّل المحاسب المهني أتعاب إحالة أو حصّل عمولة فيما يتعلق بالعميل. 330/5 ت2: من أمثلة التصرفات التي قد تعمل بمثابة تدابير وقائية لمواجهة مثل ذلك التهديد الناشئ عن المصلحة الشخصية: الإفصاح للعملاء عن أي أتعاب إحالة أو ترتيبات عمولة تُدفع إلى محاسب مهني آخر أو طرف ثالث، أو يتم تحصيلها منهم، مقابل التوصية بالخدمات أو المنتجات. (رد الهيئة على الاستفسار رقم 156: يرجى مراجعة القسم 330 والمواد التطبيقية المتصلة به من الميثاق الدولي لسلوك وآداب المهنة المعتمد).
Attestations and detailed review checklist
Green confirms a numerical condition or your attestation.
%
Live regulatory risk diagnostic
Art. 78(1)(a): 30% unlicensed voting cap
Green / numerical or attested check25.0% modeled unlicensed stake. Within numerical cap only; voting arrangements still need review.
Art. 78(1)(b) & (d): indirect control / independence
Green / numerical or attested checkPer-file pricing selected. Neither ownership nor pricing proves absence of indirect control.
Arts. 79 & 80: licensed board & decision majority
Amber / review requiredBoard composition and licensed director voting rights not yet attested.
M/59 Art. 7(7) & Regs Art. 9: Saudi technical staffing
Red / outside modeled boundaryTechnical staff on Licensed Firm GOSI. 0.0% Saudi technical staff; modeled headcount 20, required band 30%.
SJSC Arts. 151 to 152: stapling & voting suspension
Amber / review requiredNo executed stapling or voting-suspension provision attested. Review both bylaws and enforceability.
ZATCA Arts. 13(C) & 14(C): TP range defense
Red / outside modeled boundaryOne or more fee/spread assumptions are outside supplied IQR. Routine-profit denominator conflict and comparable validation remain unresolved.
Four-agreement blueprint
1. ServiceCo SJSC bylaws & SHA
M/132 Arts. 151, 152, 154, 200, 203
Share classes, transfer controls, governance and commercial activity perimeter. Define ServiceCo ownership and funding without professional-direction rights.
ServiceCo commercial control does not authorize control of licensed audit judgments.
2. Licensed Firm professional SJSC bylaws & SHA
M/132 Arts. 200, 203, 204, 207, 208, 209; Decision 284 Arts. 77, 78, 79, 80; M/59 Arts. 2, 7, 8, 10
Licensed shareholder qualification, professional purpose, responsibility and governance. Preserve licensed control and eligible board composition.
A PSI label alone does not qualify the additional 26% as licensed ownership. Obtain evidence of LicensedCo eligibility.
3. Master services & platform licence agreement
Decision 284 Art. 78(1)(b), (d); M/59 Arts. 2, 7, 8, 10 (as amended by M/169); ZATCA Arts. 13(C), 14(C)
Schedules A/B/C: services and staffing, platform usage, annual budgeted rate-card adjustment. Separate professional decisions, client confidentiality, GOSI staffing and pricing evidence.
Residual sweeps and gross-revenue fees need an independence analysis. Domestic software licence and offshore subcontract are different tax flows.
4. Stapling deed & share pledge
M/132 Arts. 151, 152, 154; Arts. 207, 208, 209; Decision 284 Art. 78
Coordinate transfers and permitted security enforcement through both constitutional documents, subject to professional ownership restrictions.
Statutory transfer provisions do not by themselves create automatic stapling or voting suspension. Enforceability and professional eligibility require document review.
Primary-source reference desk
- Decision 284: Companies Law implementing regulations (Arts. 77 to 80)
- Accounting & Auditing Profession implementing regulations (technical staffing bands)
- Ministry of Commerce: professional companies, Article 200
- ZATCA transfer pricing bylaws
Primary references checked 2 November 2026. Full M/132 and amended M/59 clause-level legal validation, independence analysis and enforceability remain open. The supplied study incorrectly attributes “Art. 209” to M/59; this blueprint attributes it to Companies Law M/132.