Inside a TPG-Backed Accounting Firm’s Plans for AI and More Acquisitions

What happened: Smith + Howard, a TPG-backed accounting firm that has grown by acquiring smaller firms, is preparing a new round of acquisitions, including two that could close by the end of the year. It is also exploring AI for basic, repetitive work. Why it matters: CEO Sean Taylor said AI could let the firm expand without hiring accountants at its previous pace, reflecting a broader bet among private equity firms and AI labs that the technology can lift profits when consolidating professional services firms.

Smith + Howard, a TPG-backed accounting firm that has grown by acquiring smaller firms, is preparing a new round of acquisitions, including two that could close by the end of the year. It is also exploring AI for basic, repetitive work.

CEO Sean Taylor said AI could let the firm expand without hiring accountants at its previous pace, reflecting a broader bet among private equity firms and AI labs that the technology can lift profits when consolidating professional services firms.