A wave of consolidation and institutional investment is reshaping the accounting industry. Historically dominated by privately held partnerships, the sector is now attracting private equity, reshaping competition, and enabling firms to scale more efficiently.
As consolidation takes center stage, mergers and acquisitions (M&A) have emerged as a key growth strategy for accounting firms. A recent William Blair equity research survey indicates that most firms view acquisitions as critical to expanding services, entering new markets, and managing macroeconomic pressures. As a result, understanding the impact of private equity, valuation trends, and acquisition targets is key to evaluating the sector.
M&A activity is widespread across the industry, with 90% of accounting executives involved in acquisition decisions. Few firms consider themselves non-acquisitive, while the majority actively pursue deals. Larger firms, particularly those with private equity backing, are leveraging acquisitions to integrate new technologies, secure top talent, and build multiservice platforms capable of competing globally.
Private equity has also brought significant changes to deal structures and valuations. Traditionally, CPA firms relied on partner buyout models for scale and to ensure succession. However, with private equity entering the picture, competition for high-quality assets has intensified, driving up valuation multiples. This has made it more difficult for smaller, independent firms to compete, accelerating consolidation.
Firms are prioritizing acquisitions of consulting and advisory practices, followed closely by tax services. This focus reflects the industry's broader shift toward organic growth and holistic business advisory. Additionally, many firms are exploring innovative approaches to integrating digital tools and automation into newly acquired practices, enabling them to deliver higher-value solutions more efficiently.
With private equity investment showing no signs of slowing, the accounting industry is poised for continued consolidation. Firms that successfully integrate new practices, enter new geographies, and improve operational efficiency are well positioned to take market share. For investors, it is critical to monitor valuation trends and capital flows, as rising multiples present both challenges and opportunities in this competitive landscape. For more information on related investment opportunities and insights, read Accounting Services: William Blair’s Second Annual Executive Survey, published on February 2, 2026, by William Blair global services research analyst Andrew Nicholas, CPA.