By Ringside Talent
October 15, 2025
Accounting firms are changing hands in greater numbers than ever before and private equity is increasingly calling the shots.
According to a new report from CPA Trendlines Research, there were 25 mergers or acquisitions among major U.S. public accounting firms in the first half of 2025, compared to just 14 in all of 2024. Of those 25 deals, 15 were backed by private equity investors.
The activity reflects a sweeping shift in the structure of an industry once defined by independence and tradition. Five years ago, there were no calls like these, and now they’ve become commonplace.
Billions Flow into Accounting
Private equity investors have poured nearly $29 billion into accounting firms, CPA Trendlines estimates. That money is fueling investments in AI-powered technologies, new service offerings, and a wave of follow-on mergers and acquisitions.
In Massachusetts, several firms have already been caught up in the trend. In December, Waltham-based Katz Nannis & Solomon was acquired by Cherry Bekaert, a large national firm backed by private equity. There is a trend toward more technology, more services, in the marketplace. This is the stuff clients are seeking.
Other deals include Worcester-based S&G’s acquisition by Citrin Cooperman in 2024, and just this past June, Vermont’s Danaher Attig Plante was bought by Prosperity Partners, another PE-backed firm with national ambitions.
From May 2024 through January 2025, the Business Journal reported five deals involving firms with Boston-area offices.
A Mixed Bag for Firms and Clients
Private equity ownership brings an injection of resources and strategic focus, but it also comes with expectations for rapid returns. That often means cost-cutting or restructuring, moves that can clash with the profession’s service-oriented culture.
The collapse of Steward Health Care, widely attributed to its private-equity ownership, has loomed large in Massachusetts as a cautionary tale. Some in the accounting sector worry that similar pressures could ripple through their industry.
At the same time, PE investment has undeniably spurred modernization. Firms are rolling out AI tools, expanding service lines, and upgrading infrastructure faster than they might otherwise.
The New Normal?
Since the first deal in 2021, private equity has taken stakes in 10 of the 30 largest U.S. accounting firms. CPA Trendlines projects that more than half of the top 30 will be PE-owned by the end of this year.
For firms navigating this new era, hiring has become both more challenging and more critical. Private equity–backed firms are competing aggressively for accountants with not just audit and tax expertise, but also skills in AI, data analytics, and advisory services. At the same time, restructuring pressures can make retention harder, forcing leaders to be more deliberate about culture, career development, and how they position their employer brand.
To stay competitive, firms will need to move faster in attracting talent, offer clear growth paths, and invest in upskilling their teams to handle new technologies and service lines.