Smith + Howard expands in the Carolinas

Smith + Howard, a Regional Leader based in Atlanta, has acquired Smith Kesler & Co., a firm with four offices across the Carolinas, effective Jan. 31, 2025.

Founded in 1974 and based in Spartanburg, South Carolina, Smith Kesler offers accounting, tax and auditing services, focusing on construction industry clients.

Financial terms of the deal were not disclosed. Smith + Howard expects 2025 revenue of $125 million, inclusive of Smith Kessler. The firm ranked No. 11 on Accounting Today's 2024 Regional Leaders list of the Top Firms in the Southeast, with $54 million in annual revenue. Smith Kessler had 30 people, bringing Smith + Howard's total personnel to approximately 500 people.

"We are thrilled to welcome the talented professionals at Smith Kesler & Co. to Smith + Howard," said Smith + Howard CEO Sean Taylor in a statement Tuesday. "Their outstanding reputation, high-caliber client portfolio, and deep industry expertise provide a strategic advantage in our ability to serve clients. Expanding into the Carolinas allows us to introduce Smith + Howard's world-class advisory services in a region that is central to our long-term growth strategy."

SKC managing stockholder Steve Hinds will transition into the role of partner, overseeing regional operations, while all SKC employees will officially join Smith + Howard.

"As we looked to the future, we saw an opportunity to expand our reach and support construction businesses beyond the Carolinas," Hinds said in a statement. "To achieve this, we sought a partnership with a larger firm that could offer enhanced resources for our clients and greater opportunities for our team. Equally important was finding a partner whose values and culture aligned with ours. From our first conversations, it was clear that Smith + Howard was the perfect fit, exceeding our expectations in every way."

Smith + Howard received private equity funding in November 2022 from Broad Sky Partners, a private equity firm based in New York, and adopted an alternative practice structure, splitting into Smith + Howard PC, a licensed accounting firm that provides audit and attest services, while Smith + Howard Advisory LLC delivers tax, accounting and advisory services. This is the firm's fifth acquisition in the past 16 months as it continues a strategic growth plan. Last year, it acquired Fahrenheit Advisors in Richmond, Virginia, as well as VIP Search Group and VIP Solutions Group in Dallas. In 2023, it acquired Market Street Partners in Chattanooga, Tennessee.

Koltin Consulting Group CEO Allan Koltin advised on the transaction. 

"Smith Kesler is widely recognized as one of the premier construction accounting firms in the Carolinas," Koltin said in a statement. "Many top accounting firms sought to partner with Smith Kesler for its talent and client service, but its choice of Smith + Howard underscores the firm's strong culture, entrepreneurial spirit, and collaborative approach. In just two years since receiving private equity investment, Smith + Howard has established itself as a client-focused national firm, attracting top talent and executing on its growth strategy."