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Smith + Howard is combining private-equity-backed expansion with an across-the-firm AI rollout. The accounting, assurance, tax, advisory and wealth-management firm has more than 800 employees in seven states, expects about $175 million in 2026 revenue, and is considering larger acquisition targets while testing where AI can improve productivity without compromising complex audit work.

What TPG’s investment changes

Smith + Howard previously expanded with backing from Broad Sky Partners. On June 9, 2026, TPG announced an investment intended to support national expansion, technology, talent, client-service capabilities and artificial-intelligence integration. TPG said the transaction was expected to close in the third quarter of 2026, subject to customary conditions and approvals; financial terms were not disclosed. The Information’s October 14, 2026 report describes the firm’s acquisition and AI plans in the period following that investment.

The firm reported more than 800 employees across Alabama, Georgia, North Carolina, South Carolina, Tennessee, Texas and Virginia. Management expected approximately $175 million of revenue in 2026. Excluding acquisitions, revenue had increased roughly 10% to 15% annually for the previous decade, according to the report.

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How the next acquisition round is expected to work

Two possible deals before the end of 2026

Management told The Information that two acquisitions could close by the end of 2026, with additional transactions planned for 2027. The firm wants acquisitions to add approximately 20% to 25% of 12-month forward revenue, a target that would make deal sourcing and integration a central part of its growth plan rather than an occasional supplement to organic expansion.

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Larger sellers than in the earlier program

Smith + Howard previously considered firms generating about $2 million to $20 million in annual revenue. Its newer range is approximately $5 million to $50 million, bringing larger regional practices into consideration.

Acquisition measure Earlier range or approach Current plan reported in October 2026
Seller annual revenue Approximately $2 million–$20 million Approximately $5 million–$50 million
Near-term timing Earlier purchases made under Broad Sky Partners Two deals could close by year-end 2026
Following year Not stated More acquisitions planned for 2027
Contribution goal Not stated About 20%–25% of 12-month forward revenue

Why valuation varies by target

The Information reported that smaller firms with established client bases but limited technology or marketing capabilities could command EBITDA multiples of roughly five to six times. Established firms taking direct private-equity backing were approaching 12 times EBITDA or more. Those figures are market observations in the article’s context, not a valuation formula for every accounting practice. A seller’s recurring revenue, partner succession, technology stack, service mix and growth record can materially change the price.

Where Smith + Howard is applying AI first

Claude is available to every employee

Smith + Howard rolled Anthropic’s Claude out to all employees rather than restricting experimentation to a central technical team. CEO Sean Taylor described the initial opportunity as work with “a lot of lather, rinse, repeat.” Giving every team access lets staff propose practical uses from audit, tax, advisory and administrative workflows while management observes which ideas produce measurable results.

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Repetitive audits and manual work are the opening targets

Early candidates include automating industry-specific audits, reducing repetitive documentation and cutting manual work or outside software costs. These tasks often follow recognizable procedures and may be easier to standardize than engagements requiring extensive judgment.

Complex financial-statement audits are a different case. The firm expects them to be harder to automate because they involve more judgment, unusual transactions, evidence evaluation and professional responsibility. The current strategy therefore points to AI assisting accountants with preparation and repeatable procedures, not eliminating the need for auditors in the most complicated engagements.

Possible client products and an AI executive

The firm is also evaluating AI-enabled products for clients and searching for a C-suite executive to lead its AI efforts. That role could coordinate governance, security, training, vendor selection and the conversion of successful internal experiments into repeatable services.

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How management will decide whether AI pays off

TPG managing director of AI Brian Goffman identified revenue per employee as TPG’s primary measure of AI returns. For accounting operations, he suggested examining how many audits a given employee can complete. He argued that accounting firms may retain more of the savings from efficiency than businesses in some other sectors, saying, “In accounting, that doesn’t seem to be the case” when discussing whether productivity gains must be passed entirely to customers.

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Decision area Measure or method What it is intended to show
Firm-level productivity Revenue per employee Whether output rises faster than headcount
Audit operations Audits completed per employee Whether teams can handle more work without equivalent staffing growth
Project economics Monthly return on investment Whether a deployment is producing benefits after implementation costs
Technology investment Five-year cash-flow projections including AI costs and growth Whether building software internally is justified over the expected payback period

Smith + Howard tracks ROI month by month. Before deciding to build software internally, it models expected technology costs and growth in five-year cash-flow projections. That approach is designed to prevent a promising demonstration from becoming a permanent expense without a measurable operating benefit.

Goffman also described an aggressive acquisition rationale: “We’ll pay more than the other firm because we know we can create that value” through AI. The logic is that better workflows, shared technology and broader distribution could make a target worth more inside the combined platform than as a standalone practice.

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The broader private-equity consolidation strategy

Smith + Howard’s plan reflects a wider effort to consolidate professional-services firms and improve margins with technology. A platform can spread software, recruiting, marketing, compliance and training costs across more offices while giving smaller practices access to capabilities they might not build alone.

TPG has relationships involving Anthropic, Microsoft and Google. Smith + Howard was not a customer of OpenAI’s private-equity venture at the time of the report, although that could change as the venture expands its technical capacity. Those relationships provide context for TPG’s technology strategy; they do not establish that Smith + Howard uses each provider in its operations.

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What employees and clients should watch

Integration capacity

Closing two deals in a single year would test onboarding, systems migration, partner alignment and quality control. The larger $5 million–$50 million target range could bring more resources and capabilities, but it can also make integration more complex.

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Audit quality and oversight

Automating repeatable procedures does not transfer professional responsibility to a model. Smith + Howard’s distinction between simpler industry-specific audits and complex financial-statement audits signals that human review, evidence standards and engagement-level accountability remain important boundaries.

Whether productivity becomes growth

The key evidence will be whether higher output per employee supports faster service, improved margins, additional capacity or new client products. Taylor said, “We are monitoring it, but we definitely feel like the return is going to be there.” Monthly ROI reporting and the five-year investment model will determine whether that expectation survives implementation.

Deal pace in 2027

After the potential 2026 closings, the number, size and revenue quality of 2027 targets will show whether the raised seller range is a durable strategy. The reported 20%–25% forward-revenue goal also provides a benchmark for judging whether acquisitions are accelerating the platform or merely replacing slower organic growth.

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