Cherry Bekaert LLP, a Top 100 Firm, is expanding to Austin, Texas by acquiring Powell, Ebert & Smolik, PC, one of the biggest CPA firms there.
The combination promises to make Cherry Bekaert into one of the 15 largest CPA and consulting firms servicing Austin and Central Texas. As part of the deal three partners and more than 25 associates will be joining Cherry Bekaert’s more than 140 partners and 1,100 staff. Cherry Bekaert, based in Richmond, Va., ranked 25th on Accounting Today’s 2017 list of the Top 100 Firms.
Financial terms of the deal were not disclosed. Cherry Bekaert has over $200 million in annual revenue, while Powell, Ebert & Smolik has approximately $6 million in annual revenue.
The deal will allow Cherry Bekaert to enter the burgeoning Austin market, which enjoys a robust economy and innovative business climate. Cherry Bekaert hopes to bring on board clients in the technology, life sciences, advanced manufacturing, distribution and real estate sectors.
“Austin was a key strategic target market for our Firm in terms of geographic expansion,” said Cherry Bekaert manageing partner in a statement. “PES’s longstanding market reputation for quality work and client service make them a great synergistic fit for Cherry Bekaert. With their connections in the Austin community, we look forward to building a market presence for THInc, our specialty practice that serves the innovative needs of technology, health and life sciences, and industrial clients.”
PES dates back to 1992 when Danny Powell, Vernon Ebert and Jim Smolik, all of whom were alumni from Big Four firms, combined their practices. Robert Schriber became a shareholder in 1996, and PES grew to become one of the largest firms in the Austin area. All three will become partners at Cherry Bekaert.
“Our clients will benefit from Cherry Bekaert’s industry expertise and expansive suite of specialty services,” Powell said in a statement. “The growth catalysts for the Austin economy align well with the focused verticals of Cherry Bekaert. We look forward to bringing more value to the local business community.”
PES’s staff will continue to operate from the firm’s existing offices in downtown Austin under the Cherry Bekaert name.
Cherry Bekaert has done a number of mergers and acquisitions in the past year. Last month, it acquired Windward Tax in Alpharetta, Ga. Last year, it grew its presence in the Washington, D.C., area by adding Berlin Ramos & Company PA in Rockville, Md., and expanded to Nashville by acquiring a Tennessee firm, Frasier, Dean & Howard. It also established a technology arm by acquiring The Computer Solution Co. of Virginia, Inc.in Midlothian, Va.,
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