Professional Services Industry Update Spring 2026
Read more about M&A activity and trends in this sector
Professional Services Industry Update Spring 2026
Download PDFSector Spotlight: Outsourced Accounting Services
Market Observations
- Outsourced accounting services (encompassing bookkeeping, accounts payable and receivable, payroll support,
financial reporting, and CFO advisory services) continues to attract strong private equity interest, driven by recurring
revenue dynamics, scalability, and increasing adoption among small and mid-market businesses - U.S. companies are steadily shifting toward outsourcing their accounting, bookkeeping, and compliance functions to
improve operating efficiency, address persistent accounting talent shortages, and reduce fixed labor costs, while
maintaining high standards of financial accuracy and regulatory compliance - Private equity involvement in the U.S. accounting industry has increased sharply in recent years, with financial
sponsors representing 45% and 49% of total M&A activity as of 2025 and LTM Mar-26, respectively, highlighting the
sector’s attractiveness to private equity investors - This momentum is reflected in continued private equity platform investments, such as HOA Accounting Services
(NextGen Growth Partners) and Schellman (Goldman Sachs / Lightyear), alongside an acceleration in add-on activity,
with add-on deal volume increasing at a CAGR of 26% during 2021–2025
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Professional Services Industry Update Spring 2026
Download PDFMeet our team
Stephen Guy
Managing Director, KPMG Corporate Finance LLC
Stephen Guy
Managing Director, KPMG Corporate Finance LLC