Platform Accounting Group, a Utah-based company that invests in and acquires small accounting firms, has received an $85 million minority funding round to support its expansion.
The funding round, announced Tuesday, was led by Cynosure Group of Salt Lake City, with continued participation from early investors Swell Capital, also from Salt Lake City, and Peery Capital from Palo Alto, California.
Platform Accounting Group was founded in 2015 and acquires and supports the operations of boutique professional services firms that offer tax compliance, attest, outsourced accounting, ERP consulting and soon wealth advisory services to individuals and small businesses. Platform provides staffing, technology and processes and operational support to the local teams. The extra funding will enable Platform to build on its existing footprint of 28 offices and add other services such as wealth management.
“Currently, smaller accounting firms are under threat,” said Platform CEO Reyes Florez in a statement Tuesday. “Without much needed capital, operational support and staffing resources, it’s becoming harder and harder for these firms to compete and thrive. Platform believes boutique firms play a critical role in local economies and we take a lot of pride in seeing them grow, evolve and succeed.”
Platform provides various services to firms such as human resources, managed IT support, business intelligence dashboarding, internal accounting and finance, industry information and forecasting, behind-the-scenes support and outsourcing, as well as funding. It also helps with succession and transition planning for firms with owners that are nearing retirement.
“Cynosure was built to partner with founder-led businesses who have strong management teams, positive cash flow and compelling growth projections,” said Zach Larkin, managing director of Cynosure, in a statement. “Like Platform, we believe in long-term decision-making and are big fans of the approach and work Platform has been doing for almost a decade now. We are proud to provide additional capital, expertise and support for their future.”
Platform Accounting Group is also a brand name under which Platform CPA LLP and PT&C Group LLC, as independently owned entities, provide professional services in an alternative practice structure. Platform CPA LLP is a licensed independent CPA firm that provides attest services, while PT&C Group LLC and its subsidiary entities provide tax and business consulting services.
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