Gary Cooper, President and CEO, Cooper CPA Group

In an interview with Invest:, Gary Cooper, president and CEO of Cooper CPA Group, discussed Houston’s business climate, mergers and acquisitions, and the growing role of AI in professional services. “People worry about losing jobs, but they should embrace AI because it will create even more jobs than we have today,” Cooper said.

What differentiates Cooper CPA Group?

We offer tax and bookkeeping services, but we also do extensive mergers and acquisitions work, including quality of earnings reports and both buy-side and sell-side consulting.

Before starting this firm, I spent five years as an investment banker running a boutique firm. I am also an inventor with eight patents and experience in manufacturing and distributing products.

We even have a music room in our office because I am a drummer and singer. We tell people that many firms say they are creative, but we can prove it.

We mentor entrepreneurs and help clients develop strategies for growth. Our attitude is to help our clients make more money and be more efficient. We certainly focus on minimizing taxes, but we are entrepreneurs ourselves, which helps us connect with our clients.

How would you describe the business climate in Houston, and what are you hearing most often from business owners?

Houston’s market is growing rapidly. We get around 400 new client meetings a year through digital marketing and other sources, and there is an awful lot of business being attracted to the region. There are small companies being formed, and we also do a lot of mergers and acquisitions work.

One interesting trend is that baby boomers do not want to sell their businesses, while there are a lot of potential purchasers waiting on the sidelines. When younger entrepreneurs acquire businesses, they often invest in them and focus on growth, so I think Houston is going to experience more of that over time.

Houston is also attracting people from states like New York and California. I lived in Dallas for 24 years, and Houston is different. People here are willing to do business with one another and embrace newcomers. Houston is open for business.

What specific sectors are driving that growth?

Medical and oil and gas are certainly among them. We probably have the best medical center in the world, and it continues to grow. Oil and gas also present opportunities as activity increases.

More broadly, a growing economy benefits many industries. We continue to see people launching new businesses, and AI is creating new opportunities. People worry about losing jobs, but they should embrace AI because it will create even more jobs than we have today.

Compared with one or two years ago, are companies feeling more confident, or are they still taking a cautious approach?

People are still a little cautious. There are a lot of unknowns. Banks remain somewhat cautious about lending, and interest rates are still higher than many people became accustomed to, even though I think they are reasonable from a historical perspective.

We recently spoke with someone who wants to sell a business but is delaying the decision because they think conditions could improve. That kind of thinking is still common.

What are businesses paying attention to when it comes to tax and regulatory developments?

Taxation is here to stay. We have not had a major overhaul since 2018, which was generally positive for businesses, and C corporations continue to benefit from a 21% tax rate.

We are seeing more companies reorganize, with some S corporations converting to C corporations because of tax provisions that reward long-term ownership before a sale. Younger entrepreneurs often want to build a company and eventually sell it, rather than own it for decades, and I think that will continue to stimulate the market.

Looking ahead, people are also watching the possibility of future tax changes depending on the political landscape. I also think AI will significantly change how the IRS operates. It may reduce the need for as many agents while making audits more targeted through better analysis of information.

How are business owners approaching succession planning, business transitions, and M&A?

Many baby boomers are simply not ready to retire or sell their businesses. Meanwhile, there are many funded buyers actively searching for companies to acquire.

We do a lot of buy-side consulting, but lately we have seen relatively few deals come to market. There is plenty of capital waiting to be deployed.

Private equity also continues to consolidate industries such as CPA firms, optometry practices, pest control companies, and HVAC businesses. We are seeing a great deal of activity in that area.

How are your clients approaching AI, and how is your firm using it?

We are encouraging our clients to embrace AI, and we are doing the same. We use Blue J for tax work and Claude agents to support due diligence and quality of earnings reports.

AI is already reducing the time and cost required for certain services. A quality of earnings report that once cost around $35,000 can now be completed much more efficiently with AI-assisted tools.

One challenge is that people often do not know how to ask AI the right questions. Clients sometimes tell us ChatGPT gave them an answer, but the quality of that answer depends heavily on how the question was asked. That is why professional guidance remains important.

We will continue using AI in due diligence, tax planning, bookkeeping, and client reviews to extract information more efficiently and better serve our clients.

What is your view of the talent pool in Houston for your profession?

Human resources remains a challenge, especially for CPA firms. We have been fortunate because many of our employees have stayed with us for a long time. I have people who have been with me for 21 years, 17 years, and 15 years.

The biggest challenge is at the staff level. Remote work has made the talent market global, so people can work for companies almost anywhere. That makes hiring more competitive.

We are looking at building teams internationally. We are exploring opportunities in Colombia, and we already have an employee in Africa. I believe outsourcing will become increasingly important for the CPA profession if firms want to keep up with demand.

We also benefit from industry consolidation. As larger firms focus on bigger clients, it creates opportunities for firms like ours to serve smaller businesses.

What advantages does Houston offer entrepreneurs and small businesses?

Small businesses have created jobs in this country over the last two decades. Many young people graduating from MBA programs want to own businesses rather than work for someone else, so they are actively looking to acquire companies.

We work with those entrepreneurs throughout the process, from selecting the right entity structure and setting up banking relationships to capitalization and lines of credit. Those are areas where experience really matters.

As the proverb says, if you want to be successful, get good advisors. That is what we try to be for our clients.

What are your top priorities for Cooper CPA Group moving forward?

Our priorities are straightforward. We want to take care of our clients, meet their expectations, and help entrepreneurs expand their businesses, make more money, and reduce their taxes.

We also want to help clients expand into other states by understanding nexus issues and continue supporting successful mergers and acquisitions, whether clients are buying businesses or preparing them for sale.

Is there anything else you would like to add?

Life is short. I can tell you it has flown by for me, and it goes by even faster as you get older. Enjoy what you do. If you want to start a business, the best time to do it is as soon as possible.

When I started my firm, I resigned and simply started my company. I hear clients say all the time that they would rather own a business than work for someone else, and I encourage them to pursue that goal if it is what will make them happy.

Happiness is critical. Have interests outside of work and enjoy life. Work-life balance can be difficult, especially for employers, but people should embrace it. Spend time with your family and friends, and make time for the things you enjoy doing.