Key Takeaways
- • Eide Bailly, the 18th-ranked U.S. accounting firm, agreed to sell a majority stake to Reverence Capital Partners and co-investors in a deal valuing the firm at approximately $1.8 billion, with closing expected in Q3 2026.
- • Reverence Capital's investment will accelerate artificial intelligence implementation across Eide Bailly's operations and client services, addressing technology modernization as a primary strategic driver for the transaction.
- • Eide Bailly operates 50 offices concentrated in the Western U.S. with more than 3,500 employees and 400+ partners, specializing in middle-market audit, tax, and consulting services.
- • To comply with professional independence regulations, Eide Bailly will establish an alternative practice structure separating its nonaudit business (receiving PE investment) from its audit business (remaining a licensed CPA firm).
- • The transaction reflects accelerating consolidation in the professional services sector, following Crowe's nearly $3 billion stake sale to KKR and dozens of similar deals among the top 100 U.S. accounting firms since 2021.
Summary
Eide Bailly, a Minneapolis-based accounting firm ranked 18th among U.S. providers, has agreed to sell a majority stake to Reverence Capital Partners and affiliated co-investors in a transaction valuing the firm at approximately $1.8 billion. The deal, which both parties expect to close in the third quarter of 2026, positions Reverence as a controlling investor while accelerating the firm's technology transformation agenda.
The transaction centers on artificial intelligence implementation as its core strategic rationale. According to firm leadership, the rapid pace of technology change in professional services created uncertainty that a private equity capital sponsor could help navigate more efficiently. Eide Bailly engaged BMO Capital Markets in late 2025 to explore outside investment opportunities, ultimately selecting Reverence Capital as its partner.
Eide Bailly operates approximately 50 offices primarily concentrated in the Western United States, serving middle-market businesses through audit, tax, and consulting services. The firm employs more than 3,500 professionals, including more than 400 partners. To maintain compliance with professional independence rules governing CPA firms, Eide Bailly will implement an alternative practice structure whereby Reverence's investment flows to the nonaudit business segment while the audit business remains organized as a licensed CPA firm.
The Eide Bailly transaction exemplifies a broader consolidation trend reshaping the accounting industry. Since 2021, dozens of firms within the top 100 U.S. accounting providers have either sold ownership stakes to private equity investors or been acquired by PE-backed firms. Most recently, Crowe agreed to sell a stake to KKR in a deal valued at nearly $3 billion. Eide Bailly is among a select group of top-20 accounting firms outside the Big Four that has not undergone such a structural transformation in recent years, making this investment a significant milestone for the firm and the middle-market accounting sector.
The transaction centers on artificial intelligence implementation as its core strategic rationale. According to firm leadership, the rapid pace of technology change in professional services created uncertainty that a private equity capital sponsor could help navigate more efficiently. Eide Bailly engaged BMO Capital Markets in late 2025 to explore outside investment opportunities, ultimately selecting Reverence Capital as its partner.
Eide Bailly operates approximately 50 offices primarily concentrated in the Western United States, serving middle-market businesses through audit, tax, and consulting services. The firm employs more than 3,500 professionals, including more than 400 partners. To maintain compliance with professional independence rules governing CPA firms, Eide Bailly will implement an alternative practice structure whereby Reverence's investment flows to the nonaudit business segment while the audit business remains organized as a licensed CPA firm.
The Eide Bailly transaction exemplifies a broader consolidation trend reshaping the accounting industry. Since 2021, dozens of firms within the top 100 U.S. accounting providers have either sold ownership stakes to private equity investors or been acquired by PE-backed firms. Most recently, Crowe agreed to sell a stake to KKR in a deal valued at nearly $3 billion. Eide Bailly is among a select group of top-20 accounting firms outside the Big Four that has not undergone such a structural transformation in recent years, making this investment a significant milestone for the firm and the middle-market accounting sector.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.