CPA plans more than $500m acquisitions investment
Crete Professionals Alliance (CPA), an accounting platform supported by Thrive Capital, is looking to invest more than $500m to acquire US-based accounting firms over the next two years.
The initiative aims to implement OpenAI-powered AI technology to increase operational efficiency, reported Reuters citing company executives.
Established in 2023, CPA has rapidly expanded, now reporting more than $300m in annual revenue and incorporating more than 20 accounting businesses.
This growth is said to have positioned it as one of the fastest-growing firms in the US accounting sector. The company has a workforce of 900 across 17 offices, and also has a presence in Asia.
The firm's expansion has been fuelled by significant investment from backers including Thrive, ZBS Partners, and Bessemer Venture Partners.
CPA plans to leverage both its cash flow and external capital to fund further acquisitions, taking majority stakes in local firms and bolstering them with support in recruitment and administration.
Co-founder of Crete PA and ZBS Partners, Jake Sloane, has a history of developing roll-up businesses across various industries.
In partnership with Thrive since May 2024, he has focused on harnessing AI to empower accountants to grow their client base and manage increased workloads.
Thrive's in-house tech team, in collaboration with OpenAI, is crafting customised tools for the accounting industry, ranging from data mapping to memo writing.
Reuters reported that Bennie Lewis, president at Assurance Dimensions, a Crete-owned firm in Tampa, Florida, highlighted the practical benefits of AI in audit testing, noting significant time savings for his team, enabling more focus on client engagement.
Sloane emphasises that their roll-up strategy differs from conventional private equity models by allowing practices to retain a minority equity stake, ensuring that original shareholders stay actively involved.
Kareem Zaki, a partner at Thrive, pointed out the necessity of going beyond merely selling software to add value in the intricate accounting sector, the news publication reported.
Zaki stated: "As full-stack operators of the accounting firm, we can take all the software elements, the operational elements, and be able to flow that through into the end customer experience."
According to Reuters, Sloane expressed that the objective is not to supplant accountants with AI, but rather to augment service quality while human professionals foster trusted client relationships.
Sloane said: "I don't believe AI is something that will fundamentally eradicate the need for accountants."
"CPA plans more than $500m acquisitions investment" was originally created and published by International Accounting Bulletin, a GlobalData owned brand.
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