Key Takeaways
- • Advisory List published a reported article, "Who's Buying Accounting Firms, and What It Means for Yours," by Amanda Smith, examining how private equity-backed buyers, accounting firms and individual CPAs are reshaping the market for accounting practices.
- • U.S. accounting and tax firm M&A reached a record in 2025, with nine of the 10 busiest acquirers backed by private capital, according to MarshBerry's year-end review as cited in the article.
- • Practices with less than $3 million in revenue typically sell for 90% to 110% of trailing 12-month revenue, occasionally reaching 120%, and most individual buyers rely on SBA-backed loans.
- • With SBA-financed buyers, sellers typically receive about 90% of the price at closing, while competing firms often pay over three to five years tied to client retention.
- • Private equity-backed buyers often pay part of the price in shares of their own firm, whose ownership may change again, exposing sellers to post-closing decisions.
Summary
Advisory List, a directory and community platform for small and midsize business M&A, has published a reported article examining the buyers now active in the accounting practice market and what their differences mean for owners weighing a sale, merger or continued independence. The article, written by Amanda Smith, features interviews with Gavin Raphael, principal at Light & Raphael LLC, who has represented 12 accounting practices, all of which sold, and Tim Brackney, CEO of Springline Advisory, a private equity-backed firm that has made 15 acquisitions.
According to the article, U.S. accounting and tax firm M&A reached a record in 2025. Nine of the 10 busiest acquirers that year were backed by private capital, per MarshBerry's year-end review. The buyer pool for an individual practice, however, depends on its revenue, profitability and specialty. In Raphael's market of practices with less than $3 million in revenue, private equity rarely participates; his buyers are mostly other accounting firms and individual CPAs. Such practices typically sell for 90% to 110% of trailing 12-month revenue, occasionally reaching 120%. Most individual buyers use SBA-backed loans, and Raphael notes that "if the bank says no, there's no deal."
Brackney describes Springline's approach as building a new firm, evaluating acquisitions on economics, strategic fit and culture. He says the firm seeks practices already performing well that want to grow faster. "We are not looking to just simply aggregate and synergize for value," he said. "We haven't looked for firms that are broken in some way."
The article also examines how buyer type affects payment timing. With SBA-financed individual buyers, Raphael says sellers typically receive about 90% of the price at closing. Competing firms tend to pay over three to five years, tied to client retention, leaving sellers exposed to decisions made after control changes hands. Private equity-backed buyers often pay part of the price in equity in their own firm, whose ownership may change again.
Consolidation also affects independent firms. Brackney calls private equity investment "a force for good broadly," while acknowledging it has intensified some existing problems, including competition for acquisitions. Raphael sees opportunity when a local competitor is acquired: "it's generally a boom for the smaller firms," he says, because staff often leave and clients follow them. For owners planning their next step, the article emphasizes staff retention, a clear understanding of the firm's value and early planning, and Brackney urges sellers to assess culture during due diligence: "They have to find their village," he says.
According to the article, U.S. accounting and tax firm M&A reached a record in 2025. Nine of the 10 busiest acquirers that year were backed by private capital, per MarshBerry's year-end review. The buyer pool for an individual practice, however, depends on its revenue, profitability and specialty. In Raphael's market of practices with less than $3 million in revenue, private equity rarely participates; his buyers are mostly other accounting firms and individual CPAs. Such practices typically sell for 90% to 110% of trailing 12-month revenue, occasionally reaching 120%. Most individual buyers use SBA-backed loans, and Raphael notes that "if the bank says no, there's no deal."
Brackney describes Springline's approach as building a new firm, evaluating acquisitions on economics, strategic fit and culture. He says the firm seeks practices already performing well that want to grow faster. "We are not looking to just simply aggregate and synergize for value," he said. "We haven't looked for firms that are broken in some way."
The article also examines how buyer type affects payment timing. With SBA-financed individual buyers, Raphael says sellers typically receive about 90% of the price at closing. Competing firms tend to pay over three to five years, tied to client retention, leaving sellers exposed to decisions made after control changes hands. Private equity-backed buyers often pay part of the price in equity in their own firm, whose ownership may change again.
Consolidation also affects independent firms. Brackney calls private equity investment "a force for good broadly," while acknowledging it has intensified some existing problems, including competition for acquisitions. Raphael sees opportunity when a local competitor is acquired: "it's generally a boom for the smaller firms," he says, because staff often leave and clients follow them. For owners planning their next step, the article emphasizes staff retention, a clear understanding of the firm's value and early planning, and Brackney urges sellers to assess culture during due diligence: "They have to find their village," he says.
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