PE, Merge or Move On? Navigating Next for Accounting Firm Owners

The accounting profession is in the midst of a seismic shift. Private equity (PE) is reshaping firm ownership structures, consolidation is reaching smaller firms, and partners nearing retirement are asking: Who will take care of my clients?

In the face of these changes, many feel like the choice is being made for them. But that doesn’t have to be the case.

Understanding the Landscape

Accounting Today recently reported that private equity and venture capital-backed deal value in the accounting, auditing, and taxation services sector was more than $6.3 billion in 2024—the most since 2015, based on S&P Global.

The promise of capital infusions, advanced technology, and streamlined operations is enticing. Because of this, M&A activity is climbing. The AICPA reports that firm consolidations have doubled in the past three years.

Add to that the talent shortage, succession planning crises, and growing client expectations—and it’s no wonder firm owners are at a crossroads.

The Four Paths Forward

1. Private Equity Partnerships: For firms with strong growth potential and a niche offering, PE can provide capital to scale and support for retiring owners. However, it may reduce decision-making autonomy, shift firm culture, and align long-term goals with investor priorities.
2. Mergers or Acquisitions: Joining forces with another independent firm can create synergy, expand services, and address succession gaps. Integration can be challenging, including managing culture clashes, technology differences, and leadership realignment.
3. Independent Growth: Growing organically allows a firm to retain full control. This requires investment in technology, leadership development, and client experience to stay competitive.
4. Lifestyle Firm: Some firms focus on work-life balance and a comfortable lifestyle, even if salaries are lower than market rates. Professionals in these firms often work intensively during busy season but enjoy more flexibility and reduced hours the rest of the year.

Reclaiming the Driver’s Seat

The most successful firms proactively evaluate:

• Strategic vision: What kind of firm do we want to be?
• Succession planning: Who is ready to lead?
• Talent pipeline: How are we building future capacity?
• Tech transformation: Are we leveraging technology to optimize how we work?
• Firm culture: How do we want to work, and who do we want to attract?

There is no one-size-fits-all answer, but remaining competitive against well-financed competitors requires strategic planning and intentional decision-making. Firm owners who evaluate their options carefully and invest in areas that differentiate their firm—whether for employees or clients—are best positioned to succeed.

Whether a firm partners with PE, merges strategically, or doubles down on independence, now is the time to set a course—on your own terms.