BDO reconfirms its commitment to take no PE money

At a time when private equity is investing heavily in public accounting firms, BDO, the nation’s sixth-largest accounting firm, has reconfirmed its commitment to charting its own course. While announcing staff changes, including the retirement of current US CEO Wayne Berson, the firm described a “strategic reset and decision to remain independent of external equity investment” in a press release.

“Choosing independence is a conscious decision made from a position of strength,” BDO global CEO Pat Kramer said in a statement. “This approach ensures that we remain in control of our destiny while continuing to build a future-proof organization.”

Though increasingly popular, the choice to accept PE funding is not without controversy. While some view PE investment as a way for firms to grow, offer more consulting services, address the talent shortage, and increase investments in technology, others worry PE money could compromise firms’ independence or lead them to prioritize short-term earnings over long-term goals.

Inside Public Accounting’s midyear survey of accountants revealed mixed feelings toward PE. Around 40% said PE was “raising the competitive bar” for firms, but an equal percentage wasn’t sure, and 23% said it wasn’t. Close to half (47%) of respondents said that PE “created challenges or morale issues for staff.”

In an interview with CFO Brew earlier this year, Berson said he felt PE investments benefited partners more than they did employees. BDO USA adopted an employee stock ownership program (ESOP) in 2023 as a means of raising capital.

But BDO USA is also pursuing a strategy familiar to PE-backed accounting firms: scaling up. Last month, it merged with Horne LLP, the country’s 31st-largest firm, a deal which brought it an increased presence in the Southeast. The Horne merger increased its employee base by more than 1,300 people.

Horne CEO and managing partner Rusty Butcher told Accounting Today that his firm had explored PE investment, but that “we could just never get comfortable that doing a transaction with private equity was consistent with our focus on providing opportunities for our people and making sure that we’re being good stewards of the resources that we have been provided.” BDO USA’s ESOP, he said, “did align with our values.”

Correction 10/28/2025: This story has been edited to update references to BDO USA, instead of BDO, and to clarify details of its Horne merger.