CohnReznick has made its first M&A deal of 2026, acquiring Minneapolis-based Smith Schafer & Associates in a move that marks the top 15 accounting firm’s entry into Minnesota.
Financial terms of the deal, which became effective on Jan. 1, weren’t disclosed. As a result of the acquisition, New York City-based CohnReznick adds 12 partners, 89 employees, and three offices in Minneapolis, Rochester, and Red Wing, MN.
Over the past year, CohnReznick has expanded in San Francisco; Tampa and Tallahassee, FL; and Richmond, VA, after receiving an outside investment from private equity firm Apax Funds in early 2025. The outside capital is being used in part to spur investments in organic growth and selective M&A opportunities, CohnReznick said.
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“Smith Schafer’s deep local roots, entrepreneurial spirit, and trusted relationships perfectly complement CohnReznick’s national reach and industry expertise,” CohnReznick Advisory CEO David Kessler said in a statement. “Together, we can bring clients the insights that help create value, optimize performance, and manage risk. I’m excited about the difference we can make together for our people, our clients, and our communities.”
Founded in 1971, Smith Schafer is a public accounting and consulting firm that brings to CohnReznick strong experience in professional services firms, construction, manufacturing, and transportation.
“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 Malugani, managing principal of Smith Schafer.
CohnReznick said it will leverage its deep advisory, assurance, and tax resources in real estate, financial services, technology, and consumer and manufacturing to serve the diverse and innovative Minnesota marketplace.
Allan 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.”
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