Professional Services Industry Update Winter 2025

Market Observations

• Private equity investment in the accounting and CPA sector has accelerated rapidly in recent years, signaling a transformative shift in how firms operate, compete, and grow
• Over the past six years, private equity firms have invested over $50 billion in CPA firms
• Once a fragmented industry, accounting services are now attracting significant private equity capital, with investors targeting scalable platforms and high-margin advisory services
• As of Q3-25, 11 of the 30 largest U.S. accounting firms have take on private equity investment , and over half of the top 30 accounting firms could be PE-backed by year-end

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. There are an estimated 46,000 to 52,200 CPA firms in the US, validating continued fragmentation to implement “buy and build” strategies 
• 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