Professional Services Industry Update Spring 2025

• M&A velocity in accounting services sectors continues to accelerate as a result of increased demand by private equity investors
• According to the Financial Times, over the past three years, a third of the largest U.S. accounting firms have either been acquired or received investment from private equity firms
• In January, Citrin Cooperman became the first firm to change hands twice by separate private equity firms, having initially receiving investment from New Mountain Capital in Oct-21, and subsequently being acquired by Blackstone for approximately $2 billion in early January
• Blackstone’s acquisition validates continued M&A activity in the sector by middle market focused private equity funds

Private Equity investors continue to be uniquely positioned to support accounting firms in overcoming key market challenges

• M&A expertise: bring extensive buy-and-build expertise in a sector characterized by high fragmentation and rapid consolidation
• Succession & Governance: provide a solution for the succession dilemma inherent in the accounting partnership model
• Talent Scarcity: provide support for an increasing shortage of qualified accountants and advisory personnel
• Operational improvements: in-house subject matter and portfolio management expertise provides support for improved enterprise efficiencies