San Antonio-based accounting firm ATKG has taken on an investment from Ascend, a strategic partner for regional accounting firms that is backed by private equity firm Alpine Investors.
As part of the deal, ATKG is splitting in two: CPA firm ATKG LLP will offer attest services, while Ascend will invest in ATKG Advisors LLC, a non-CPA firm that will offer tax and advisory services. This sort of alternative practice structure is common in PE deals in accounting.
Financial terms of the deal were not disclosed.
Founded in 1982, ATKG has eight equity partners and 65 employees. It has two offices in San Antonio and Boerne, Texas, and is a member of international firm association Allinial Global. It has been named to Accounting Today‘s list of the Best Accounting Firms to Work For a number of times, and in 2022 was named one of the Best Firms for Young Accountants.
“ATKG wanted to secure additional resources,” said Eric Abati, now CEO of ATKG Advisors, in a statement. “However, we were unwilling to sacrifice our culture and autonomy in the process and that’s why we are thrilled to partner with Ascend and Alpine Investors. This partnership secures our future while maintaining our independence and allowing us to continue serving our clients with our unique approach.”
“This partnership will unlock resources for ATKG in the areas of people and technology, enabling us to further invest in our team’s growth and provide even better service to our clients,” he continued. “With the support and expertise of Ascend and Alpine Investors, we can continue to uphold our ‘People First’ directives and remain true to our values as an independent organization.”
Ascend makes strategic investments in entrepreneurial accounting firms, which remain independent while gaining access to capital for talent, firm and technology acquisitions, as well as back-office resources.
“Ascend is pioneering a new model that empowers entrepreneurial CPAs to reach their goals by providing the benefits of a large CPA firm while preserving their independence,” said David Wurtzbacher, founder and CEO of Ascend, in a statement. “First, our partner firms get the benefit of shared resources, like a talent acquisition team and a better technology stack. Then they dive into our PeopleFirst Program and the Ascend Growth Model which enable CPA leaders to bring their firms to new heights as the industry experiences massive transformation.”
Ascend’s first CPA firm investment, with Washington-based Opsahl Dawson, was announced in January (see story).
Credit: Source link
