Capstone Expands in WA, Highlighting Accounting Consolidation Trend

SNOHOMISH, WA – December 29, 2025 – Capstone Accounting and Tax, a prominent firm in the Pacific Northwest and Mountain West, has announced a strategic partnership with North Star Tax & Accounting, marking a significant expansion of its presence in Washington state. The acquisition brings North Star’s offices in Snohomish and Lynden under the Capstone brand, integrating a well-regarded local practice into a rapidly growing regional network.

The move is more than a simple business transaction; it serves as a clear example of the powerful consolidation trend reshaping the American accounting industry. While clients of North Star are being assured of service continuity from the same local professionals, the deal underscores a broader shift where larger, often private equity-backed firms, are absorbing smaller practices to achieve scale, expand service lines, and enter new geographic markets.

A Blueprint for Aggressive Growth

This partnership is the latest in a series of calculated acquisitions for Capstone, which has been executing a deliberate “buy-and-build” strategy across the western United States. The firm's expansion model focuses on identifying and partnering with trusted local firms, integrating their operations while aiming to preserve the client relationships and community presence they have cultivated over years. Recent history shows a clear pattern: Capstone has previously expanded into Idaho by combining with Crandall-Swenson PLLC in Boise, established a foothold in Montana through Mark Rule & Co., and bolstered its Oregon presence by acquiring Sargent CPA in Klamath Falls and Nissen & Meyer in Central Oregon. Just this past April, the firm added Keller & Mendoza CPAs in Colorado.

Fueling this aggressive expansion is a significant investment Capstone received in April 2025 from Seaside Equity Partners, a San Diego-based private equity firm. This infusion of capital is enabling Capstone to accelerate its M&A activities, a strategy openly declared in its search for small and mid-sized accounting, tax, bookkeeping, and HR advisory practices nationwide. The partnership with North Star is its first major transaction in Washington, signaling the firm's intent to become a dominant player in the state's accounting landscape.

“We are thrilled to welcome North Star into the growing Capstone family,” said Susan Olson, CEO of Capstone Accounting and Tax, in the official announcement. “Their strong reputation, dedication to their clients, and delivery of comprehensive service lines like their Client Accounting Services practice make North Star an ideal fit for our team.” This statement highlights Capstone’s focus on acquiring firms with not only a solid client base but also valuable, modern service offerings.

Local Roots, Broader Reach for Washington Clients

For the individuals and small businesses in Snohomish and Lynden who have relied on North Star since its founding in 2008, the key message from both companies is one of stability and enhancement. A cornerstone of the deal is the retention of North Star’s leadership. David Romano and Sheena Frenzel, who built North Star’s reputation for personalized care, will continue their work as partners within the larger Capstone organization. This move is designed to ensure that clients continue to interact with the trusted advisors they know.

“Joining Capstone is an exciting opportunity for our clients and our team,” Romano stated, emphasizing the cultural alignment between the two firms. “Capstone's commitment to local service models resonates with our core values, and we are eager to embark on this new chapter together.”

Frenzel echoed this sentiment, pointing to the tangible benefits for their clientele. “Combining our resources and experience with Capstone’s expertise and existing network of offices will enable us to enhance the services we provide our clients in the Lynden and Snohomish communities.”

Clients can expect access to a wider array of resources and specialized expertise that a larger firm like Capstone can provide, from more sophisticated tax planning and advisory services to advanced technological platforms. The transition is promised to be seamless, with specific assurances that it will not disrupt the upcoming 2026 tax season.

Consolidation Reshapes the Accounting Landscape

The Capstone-North Star deal is a microcosm of a powerful wave of mergers and acquisitions sweeping the accounting profession. This trend is driven by a confluence of factors that make it difficult for small and mid-sized independent firms to thrive on their own. One of the primary catalysts is a demographic challenge: many firm owners are approaching retirement age without a clear succession plan, making an acquisition an attractive exit strategy.

Simultaneously, a persistent talent shortage makes it difficult for smaller firms to recruit and retain the skilled accountants needed to grow. Merging with a larger entity provides access to a deeper talent pool and a more robust career path for employees. Furthermore, as technology automates traditional compliance work like tax preparation and bookkeeping, the future of the profession lies in higher-margin advisory services. Building out these capabilities—such as cybersecurity, data analytics, and complex business consulting—requires significant investment, which is often beyond the reach of smaller practices. Consolidation offers a shortcut to diversification and scale.

The increasing involvement of private equity has thrown gasoline on this fire. With nearly a third of the largest U.S. accounting firms having received private equity investment in recent years, the industry is seeing more well-capitalized players like Capstone actively pursuing acquisitions to drive rapid growth and shareholder returns.

A Crowded Local Market Adapts

The arrival of a larger, well-funded competitor like the newly expanded Capstone will undoubtedly send ripples through the local accounting markets in Snohomish and Lynden. These communities are served by a dense network of independent CPAs and small firms, including Hansen & Cogar, PLLC in Snohomish and firms like Larsson Gross PLLC and Telgenhoff & Oetgen, PS in Lynden. These established local players will now face increased competition from a firm that combines North Star's community reputation with Capstone's regional resources and marketing power.

This heightened competitive pressure may force independent firms to re-evaluate their own strategies. Some may choose to specialize in niche industries or client types, offering a level of focused expertise that larger, more generalized firms cannot match. Others may double down on their identity as purely local businesses, emphasizing deep community ties and a personal touch as their key differentiators. For some, the path may be to seek their own strategic partnerships, further fueling the cycle of consolidation. This acquisition effectively redraws the competitive map, forcing every local practice to consider its place in a rapidly evolving industry.