CRI Partners with Private Equity Firms to Drive Growth and Innovation

November 18, 2024 – In a groundbreaking move within the accounting and valuation industries, Carr, Riggs & Ingram (CRI), a top 25 U.S. accounting firm, has announced a strategic partnership with Centerbridge Partners and Bessemer Venture Partners, two leading private equity and venture capital firms. This collaboration marks a significant milestone, aligning CRI’s ambitious growth plans with substantial investment backing to expand its reach, services, and technological capabilities.

What the Partnership Brings

The investment from Centerbridge and Bessemer is designed to propel CRI into a new phase of growth by:

  • Expanding into new geographic markets.
  • Broadening service offerings, including cutting-edge technologies for service delivery.
  • Attracting and retaining top-tier talent in a competitive market.
  • Strengthening internal infrastructure to better serve clients.

Bill Carr, CRI Chairman, expressed enthusiasm for the partnership:

“We believe this strategic investment will greatly benefit our talented team members and certainly our valued clients. We’ll be able to invest more into our staff, create new opportunities, and continue doing what we’ve always done—delivering exceptional results to our clients.”

Why This Partnership Matters

The deal positions CRI to maintain its “local firm” culture while gaining “big firm” capabilities. This dual focus is vital for a firm that has seen remarkable organic growth and completed numerous mergers across the Southeastern U.S.

Dan Osnoss, Senior Managing Director at Centerbridge, emphasized this balance:

“We believe strongly in the value proposition created by CRI’s unique blend of ‘local firm’ culture and client service with ‘big firm’ capabilities.”

Brian Feinstein, Partner at Bessemer, highlighted the transformative role of technology:

“CRI is one of the most innovative accounting firms in the industry. We are excited to work with the CRI team to take advantage of innovations in software and AI.”

M&A and PE Trends in Accounting and Valuation

The CRI partnership reflects broader industry trends. Nearly 10% of the top 30 U.S. accounting firms have now secured private equity investments, including Grant Thornton and Baker Tilly. This surge underscores the growing interest in professional services firms by private equity players seeking high-growth opportunities.

Valuation professionals, particularly those operating within CPA firms, should monitor these developments closely. Private equity-backed investments often signal increased demand for business valuation services, especially in areas such as:

  • Transaction advisory for M&A deals.
  • Tax planning and compliance.
  • Technology adoption, including AI and data analytics, to streamline processes and add client value.

The Road Ahead for CRI

As part of the deal, CRI will operate under an alternative practice structure. Assurance, attest, and audit services will remain under the independent licensed CPA firm Carr, Riggs & Ingram LLC, while tax and consulting services will be provided by CRI Advisors LLC and its subsidiaries.

With a footprint in over 35 markets across 12 states, CRI’s services span industries including construction, government, financial institutions, healthcare, manufacturing, and not-for-profits. Its offerings include:

  • Traditional services: Audit, assurance, tax planning, and trusts and estates.
  • Specialized services: Forensic accounting, IT auditing, business valuation, and retirement plan services.

What This Means for Valuation Firms

The CRI deal highlights the evolving landscape for firms specializing in valuation and consulting services. Allan Koltin, CEO of Koltin Consulting Group, called the move a “feel-good story of the century,” noting:

“CRI has become the youngest top 100 firm ever to receive a private equity investment as a foundation firm. There is no question in my mind that CRI will grow substantially over the next years while maintaining the ‘family feel’ culture they have had since day one.”

Valuation firms can take inspiration from CRI’s success by focusing on:

  • Leveraging private equity for growth.
  • Enhancing service capabilities through technology adoption.
  • Maintaining a client-centric culture while scaling operations.

As private equity’s influence grows in the accounting and valuation industries, firms must stay agile and innovative to remain competitive. The CRI partnership is a clear indicator of how strategic investments can reshape the future for professional services firms.