Folks have strong feelings about what private equity’s entrance into public accounting means for the industry. A fresh set of data isn’t really helping settle the argument, either.
A new survey of accounting pros from Inside Public Accounting and Rosenberg Associates found “no overwhelming consensus within the accounting profession on whether PE is a positive force.”
The 163 respondents were divided “when asked whether PE is raising the competitive bar” in the sector. Four in 10 professionals said it was, and the same number said they were unsure. Roughly 23% said it was not.
“This even split reflects a profession still evaluating the long-term implications of PE’s involvement,” the survey report’s authors wrote. “Some respondents view PE as a much-needed catalyst for operational discipline, capital investment, and strategic growth. Others worry about its potential downsides—particularly a shift toward short-term profitability, loss of autonomy, and negative effects on firm culture and staff morale.”
Opinions varied based on seniority. Nearly half (47%) of the 86 managing partners surveyed said it’s too soon to say, 36% said yes, and 17% said no. Partners, who made up 30% of the survey group, were more bullish. Roughly three in 10 (31%) among that cohort said PE had a positive impact on firm partners, 42% said the impact was either neutral or mixed, and 27% said there’s been a negative impact.
About half (47%) of respondents said “PE has created challenges or morale issues for staff,” while 12% said PE “provided greater opportunities.” Most respondents (54%) said clients were either neutral or unaware of PE ownership-related changes at accounting firms. A little more than two in five (42%) said clients were hesitant or resistant to changes. Only 4% reported positive responses from clients.
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