PE-backed public accounting consolidation picks up steam

CPA firm consolidation is a runaway train, and private equity’s stuffing the engine with coal.

PE investment in accountancy has consequently led to a “dramatically higher number” of roll-up transactions over the last half decade, according to new global research from the International Federation of Accountants (IFAC), which notes the trend could “introduce challenges” like higher fees for services, while also creating “better resourced” accounting firms.

By IFAC’s count, fewer than 200 PE investments in accounting firms led to some 900 subsequent transactions in 2025. Those transactions were typically roll-ups of smaller firms into the larger, PE-backed firm.

Put another way, “each direct PE investment resulted in 7.6 additional transactions,” IFAC noted. This consolidation index, according to the report, “has increased four-fold since 2021.”

As part of its research, IFAC explored the potential consequences, both good and bad, of the global consolidation spree. Possible risks include higher fees for clients and more investments in advisory services over audit and assurance services. Opportunities include better resourced and more resilient accounting firms, as well as more effective and efficient service offerings.

“Regardless of ownership structure, the integrity, quality, and independence that underpin our work as professional accountants must remain non-negotiable,” Lee White, CEO of IFAC, said in a news release. “Trust, confidence, and a steadfast commitment to the public interest are what define the profession—and they must continue to guide its future development.”

Zoom out: More than 1,000 accounting firms across the world have taken in PE investments over the last decade, “with activity accelerating significantly since 2022,” according to the report. Last year marked PE’s first flip of an accounting firm in this consolidation wave, with the sale of Citrin Cooperman from one PE owner to another. Backed by PE investment, Baker Tilly became the sixth-largest US accounting firm last year following its acquisition of Moss Adams. PE owns just under half of the combined firm.

Leaders of CPA firms that take on PE investment say the capital infusion fuels their growth plans.

“The minute other firms took PE investment, it changed the acquisition playing field,” Michelle Thompson, CEO of top-20 accounting and advisory firm Cherry Bekaert, told CFO Brew in January. The company’s January acquisition of Tarsus marked its 15th deal since taking on PE investment in 2022.