New York-based IPA 100 firm CohnReznick (FY24 net revenue of $1.15 billion) has entered the Minnesota market through the acquisition of Smith Schafer & Associates, a Minneapolis, Minn.-based accounting and advisory firm, effective January 1.
Smith Schafer brings 12 partners and 89 employees to CohnReznick and operates three offices in the Minnesota market. The firm serves clients across professional services, construction, manufacturing and transportation, strengthening CohnReznick’s presence in the Midwest and expanding opportunities for growth in the region.
“We are thrilled to have found a partner who will help us build on the tremendous track record and legacy of Smith Schafer, enabling us to secure the next chapter of success, deliver greater value to our clients and more career opportunities to our people in this dynamic business environment,” said Michael J. Malugani, Managing Principal of Smith Schafer.
The transaction marks the latest expansion for CohnReznick, which has recently opened offices in San Francisco; Tampa and Tallahassee, Fla.; and Richmond, Va. The firm’s growth strategy combines organic investment with selective M&A, supported by its partnership with Apax Funds.
CohnReznick will leverage its advisory, assurance and tax capabilities particularly in real estate, financial services, technology and consumer, and manufacturing to serve Minnesota’s diverse business community.
“Smith Schafer’s deep local roots, entrepreneurial spirit and trusted relationships perfectly complement CohnReznick’s national reach and industry expertise,” said David Kessler, CEO of CohnReznick Advisory LLC. “Together, we can help clients create value, optimize performance and manage risk.”
Allan D. Koltin, CEO of Koltin Consulting Group, who advised both firms on the combination, commented “Smith Schafer is regarded as one of the preeminent regional firms in the state of Minnesota with amazing talent and known for their exceptional client service. They identified with CohnReznick’s leadership and culture and felt their investment in technology, talent, and industry specialization set them apart amongst other Top 25 CPA firms. Despite the merger frenzy that is taking place in the accounting profession, CohnReznick remains very selective in their M&A strategy and felt Smith Schafer was a “Best in Class” firm and would make for the perfect firm to combine forces with.”
