St. Louis Business Journal Features Smith Patrick CPAs on Key Trends Shaping the Accounting Industry

When the St. Louis Business Journal recently examined several trends shaping the accounting industry, it turned to Smith Patrick CPAs Managing Partner David Smith for perspective.

Smith shared insight on why private equity investors are increasingly interested in accounting practices and how those changes are beginning to affect the profession.

Smith Patrick was also recognized by the St. Louis Business Journal as one of the region’s largest accounting firms in its 2026 rankings.

Why Private Equity Is Targeting Accounting Firms

Private equity groups have taken notice of several characteristics that have long defined successful accounting practices:

• Predictable, recurring revenue through long-term client relationships. Businesses and individuals rely on ongoing tax planning, compliance work, and advisory services year after year, creating a consistent revenue base that many investors find attractive.
  
• Experienced talent. Private equity-backed firms acquire practices not only for their client base, but also to secure experienced professionals. With the profession’s ongoing talent shortage, competition is intensifying for qualified accountants.
  
• Trusted advisory relationships. Many accounting firms serve clients for decades, becoming long-term advisors on tax, financial, and business decisions. Those deep relationships create loyalty and continuity that are difficult to replicate.
  

How Investment Is Reshaping the Accounting Industry

The Business Journal’s reporting highlights how private equity investment is moving “downstream,” reaching beyond the largest national accounting networks and into smaller practices across the profession.

Transactions across the industry can take a variety of forms, from minority investments that provide growth capital to full acquisitions that transition traditional partnership structures into corporate-style governance models.

“Private equity groups are attracted to the stability of accounting,” Smith said. “The work is recurring, the client relationships tend to last for years, and the services are essential for businesses.”

In many cases, capital from these transactions is used to fund technology investments, expand service offerings, or support additional acquisitions.

Why Many Accounting Firms Are Choosing to Stay Independent

While private equity investment is becoming more visible in the industry, many accounting firms, including Smith Patrick, continue to operate under traditional partnership structures.

Smith Patrick CPAs continues to operate as a partner-led firm focused on long-term client relationships and thoughtful growth. Maintaining local leadership and independence allows the firm to prioritize client needs and professional judgment without outside investor pressures.

As the accounting industry continues to evolve, Smith Patrick remains focused on what has driven its growth to date: experienced advisors, long-term client relationships, and steady expansion built around the needs of the businesses and individuals it serves.