Private Equity Ownership Trends in the Accounting Industry: Understanding Who Really Owns What

The accounting industry is undergoing one of the most significant transformations in its history. Behind the mergers, consolidations, and technology investments reshaping the profession lies an increasingly powerful force — private equity. Understanding how private equity invests during the lifecycle of ownership in accounting and advisory firms isn’t just an academic exercise. It’s essential for firm owners, employees, and even clients who want to know who actually owns the businesses serving them and how that ownership affects decision-making, pricing, and service quality.

1. The Entry Stage: Why Private Equity is Targeting Accounting Firms

Private equity groups have discovered that accounting and advisory firms offer precisely what investors crave — recurring revenue, sticky client relationships, and predictable cash flow. As compliance work becomes commoditized, investors see opportunities to help firms scale advisory and consulting services, boost margins, and leverage technology.

At the acquisition stage, PE firms typically seek well-managed regional firms with $5M–$50M in revenue, strong leadership, and potential to roll up smaller practices. The strategy is clear: build platforms that can consolidate a fragmented industry under one umbrella, gain economies of scale, and use shared back-office and technology resources to improve profitability.  Large players like Citrin Cooperman, Baker Tilly, and Grant Thornton are PE owned.  

Private equity is also buying key vendors within the accounting industry.  Right Networks, and CPA Site Solutions have been private equity owned for quite some time.  

2. The First 100 Days: Reorganizing and Rebranding

Once an accounting firm is acquired, private equity investors move quickly to professionalize operations. This often includes installing a new board structure, standardizing financial reporting, and centralizing marketing or HR functions.

You might notice subtle changes — a new logo, modernized website, and stronger push toward cross-selling advisory services. Behind the scenes, new KPIs, performance dashboards, and growth targets are being implemented. For partners and employees, this stage can be both exciting and unsettling. The culture starts to shift from partner-led autonomy to performance-driven management.

3. Growth and Expansion: Buy-and-Build in Full Force

After stabilization, the focus turns to rapid expansion. Private equity firms aggressively pursue “tuck-in” acquisitions — smaller CPA firms that can be integrated into the platform. This buy-and-build model aims to quickly increase market share, geographic reach, and service capacity.

Many of the largest names in the profession today are now part of PE-backed networks. RSM, Citrin Cooperman, EisnerAmper, Baker Tilly, and others have experienced consolidation or minority investments tied to private equity capital. Each deal reflects a common playbook: drive growth through acquisition, improve technology infrastructure, and diversify revenue away from tax and audit dependency.

4. Mid-Cycle Investment: Technology, Talent, and Efficiency

Once a PE-backed firm reaches scale, additional capital is invested to modernize systems, implement automation, and enhance client delivery. Artificial intelligence, cloud platforms, and workflow automation tools are deployed to reduce manual labor and improve margins.

At this stage, investors push firms to act more like consulting businesses — offering CFO advisory, transaction support, and data analytics. While this creates new revenue streams, it also places pressure on teams to upsell and meet growth quotas, shifting the tone from professional service to performance metrics.

5. Preparing for Exit: Monetizing the Investment

Private equity ownership is temporary by design. After five to seven years, investors typically seek an exit through a sale to another PE group, a merger with a larger firm, or a partial recapitalization. The goal is to monetize the growth achieved during the hold period.

For the firm’s professionals, this can lead to new leadership structures, branding changes, or another wave of integration. It’s also why understanding who owns your firm today may not tell you who will own it tomorrow.

6. Why Ownership Transparency Matters

In an industry built on trust and confidentiality, knowing who actually owns a firm is more than a curiosity — it’s a matter of professional integrity.

• For clients, ownership impacts how a firm operates, the technology it uses, and how much independence it truly has when providing advice.

• For partners and employees, ownership determines decision-making power, compensation models, and long-term career prospects.

• For competitors and acquirers, understanding which firms are backed by private equity helps clarify market positioning and acquisition opportunities.

Private equity’s involvement can accelerate innovation and growth — but it can also shift priorities toward short-term profitability, especially as funds approach their exit horizon. Clients and professionals alike should be aware of how these ownership cycles influence firm behavior.  While the investments in Baker Tilly, Citrin Cooperman, Grant Thornton are relatively recent, private equity ownership of Right Networks and CPA Site Solutions are closer to exit horizon.  

7. The New Normal: Accountability in an Era of Consolidation

The accounting industry is no longer a collection of small, independent partnerships. It’s rapidly evolving into a network of capital-backed organizations with sophisticated investors behind the scenes. That’s not inherently bad — it brings capital, scale, and modernization — but it changes the DNA of what “independence” and “fiduciary responsibility” mean.

As the pace of consolidation accelerates, transparency becomes the new differentiator. The firms that are clear about their ownership structure, long-term goals, and alignment with clients’ interests will ultimately earn greater trust in the marketplace.

Conclusion

Private equity ownership has permanently altered the lifecycle of accounting firms — from acquisition and integration to technology investment and eventual exit. For firm leaders, employees, and clients, understanding who actually owns which company isn’t just good due diligence — it’s essential to understanding motivations, decision-making, and the long-term vision behind the services offered.

In a profession defined by trust, clarity of ownership is the foundation of credibility.