Broad Sky Partners has completed the sale of Smith + Howard to TPG, concluding a three-and-a-half-year partnership that expanded the accounting and advisory firm into a national professional services platform.
TPG completed the investment through TPG Growth, its middle-market and growth equity platform. Financial terms of the transaction were not disclosed.
Smith + Howard provides assurance, tax, advisory and wealth management services to companies, organizations and families across a range of industries.
During Broad Sky’s ownership, the firm grew from a single Atlanta office with approximately 100 professionals into a business with about 800 professionals operating from 11 locations across the southeastern United States and India.
The expansion was supported by a combination of organic growth and nine strategic acquisitions.
Broad Sky also invested in Smith + Howard’s leadership, technology, advisory capabilities and operational infrastructure. These initiatives helped the company generate nearly four times the revenue it had at the beginning of the partnership.
One of the major developments during Broad Sky’s ownership was the creation of an offshore delivery center in India.
The additional capacity helped Smith + Howard expand its service capabilities and support a growing national client base. The company also invested in AI-enabled tools intended to improve how its professionals deliver accounting and advisory services.
Smith + Howard evolved beyond its roots as a regional certified public accounting firm by adding locations, professionals and specialized service offerings.
The company now provides audit, domestic and international tax, transfer pricing, state and local tax, cyber-risk compliance and System and Organization Controls reporting services.
Through its broader family of companies, Smith + Howard also offers wealth management, sales and use tax consulting, property tax services and specialty tax advisory.
Its specialty services include cost segregation studies and research and development tax credit advisory.
Additional offerings include management consulting, human capital consulting and executive search services.
Smith + Howard serves clients across industries including construction, distribution, hospitality, manufacturing, nonprofit organizations, real estate, technology, insurance captives, and transportation and logistics.
The sale to TPG is intended to support the next stage of Smith + Howard’s expansion as the firm continues investing in technology, talent and additional services.
Smith + Howard CEO Sean Taylor said Broad Sky helped provide the resources and operational support required to accelerate the company’s transformation.
Under TPG’s ownership, Smith + Howard will seek to build on the infrastructure and national presence established during its partnership with Broad Sky.
The transaction also marks Broad Sky Partners’ first portfolio company exit.
Since launching in late 2021, the private equity firm has invested in seven platform companies and completed 23 add-on acquisitions.
Broad Sky focuses on middle-market companies operating in essential business services sectors. Its investment model combines capital, operating resources and strategic acquisitions to build larger market-leading platforms.
The firm’s Portfolio Resource Group works directly with portfolio company management teams to pursue operational improvements and growth opportunities.
Broad Sky described the Smith + Howard investment as an example of its integrated investor-operator approach.
The strategy involved working with the company’s leadership team to pursue acquisitions, expand geographic coverage, improve technology and broaden the services available to clients.
TPG Growth invests in middle-market and growth-stage companies across sectors and will now support Smith + Howard as it continues developing its national accounting and advisory platform.
KEY QUOTES:
“We are grateful for Broad Sky Partners’ partnership. Broad Sky helped accelerate our transformation through meaningful investments in leadership, technology, AI-enabled capabilities and an offshore delivery center in India.”
“With their support, Smith + Howard has become a leading national accounting and advisory platform with the operational infrastructure, exceptional talent and technology to keep compounding our growth in the years ahead.”
Sean Taylor, Chief Executive Officer of Smith + Howard
“The Smith + Howard investment is emblematic of Broad Sky Partners’ integrated investor-operator model: working alongside exceptional management teams to build scaled platforms in attractive essential services sectors.”
“We’re proud of the growth Smith + Howard has achieved through our shared strategic plan, and the company is exceptionally well positioned for its next phase with TPG.”
Tyler Zachem, Chief Executive Officer and Partner at Broad Sky Partners
