Key Takeaways
- • Private equity has acquired ownership stakes in approximately 24 of the top 100 U.S. CPA firms since 2021, including at least 10 of the top 30, fundamentally reshaping the traditionally partner-owned accounting profession.
- • Deal velocity in accounting PE investments has accelerated dramatically, with transaction volume rising from 22 deals in 2023 to 65 in 2024 to over 100 in 2025, with PE focus now shifting toward "middleweight" firms ($75–$400 million in revenue).
- • Early-stage PE investors are executing "flip" transactions to secondary PE owners as their typical 3–7 year hold periods mature; Citrin Cooperman transitioned from New Mountain Capital to Blackstone in January 2025, and Schellman moved from Lightyear Capital to Goldman Sachs Alternatives in 2026, with additional flips anticipated.
- • Consolidation in the accounting sector has increased fourfold since 2021 as PE-backed firms pursue aggressive acquisition strategies, creating valuation and profitability pressures amid a more competitive exit environment.
- • The transition raises strategic questions for accounting firms regarding sustained growth trajectories, cultural stability under successive ownership cycles, and the long-term viability of PE-driven business models in a traditionally stable professional services sector.
Summary
The accounting industry has entered a transformational phase characterized by rapid private equity penetration and an emerging "flip" cycle, in which early PE investors liquidate positions to secondary buyers at elevated valuations. Since TowerBrook Capital's landmark 2021 investment in EisnerAmper, the sector has experienced a structural shift: PE funds now control ownership interests in approximately 24 of the top 100 U.S. CPA firms, with at least 10 positions among the top 30 firms. This concentration represents a significant departure from the profession's historical partner-owned governance model.
Transaction momentum has accelerated substantially. Deal volume reached 65 transactions in 2024 and exceeded 100 in 2025, compared with 22 deals in 2023—reflecting sustained capital appetite and broadening target parameters. Initially focused on large firms, PE capital has progressively moved downstream toward "middleweight" accounting practices generating $75–$400 million in annual revenue, according to Allan Koltin, CEO of Koltin Consulting Group. This repositioning reflects both the maturation of large-firm multiples and the fragmented nature of the midmarket, which presents consolidation opportunities.
The emergence of secondary transactions exemplifies the sector's evolution. Given typical PE hold periods of 3–7 years, early investors are now seeking exits. Citrin Cooperman's transfer from New Mountain Capital to Blackstone in January 2025 marked the first PE-to-PE flip in the sector. Subsequently, Schellman transitioned from Lightyear Capital (which invested in 2021) to Goldman Sachs Alternatives in 2026. These transactions indicate that valuation expectations remain elevated despite market maturation, though successful execution increasingly depends on demonstrable growth and profitability improvements.
PE-backed accounting firms have pursued aggressive consolidation strategies, with the International Federation of Accountants reporting a fourfold increase in sector consolidation since 2021. However, successive ownership transitions introduce execution risks. Firms must justify elevated valuations to secondary buyers, sustain organic and acquisition-driven growth in a more competitive landscape, and navigate cultural integration across multiple ownership cycles. The long-term implications for partner economics, service quality, and professional stability remain subject to market validation as the flip cycle matures.
Transaction momentum has accelerated substantially. Deal volume reached 65 transactions in 2024 and exceeded 100 in 2025, compared with 22 deals in 2023—reflecting sustained capital appetite and broadening target parameters. Initially focused on large firms, PE capital has progressively moved downstream toward "middleweight" accounting practices generating $75–$400 million in annual revenue, according to Allan Koltin, CEO of Koltin Consulting Group. This repositioning reflects both the maturation of large-firm multiples and the fragmented nature of the midmarket, which presents consolidation opportunities.
The emergence of secondary transactions exemplifies the sector's evolution. Given typical PE hold periods of 3–7 years, early investors are now seeking exits. Citrin Cooperman's transfer from New Mountain Capital to Blackstone in January 2025 marked the first PE-to-PE flip in the sector. Subsequently, Schellman transitioned from Lightyear Capital (which invested in 2021) to Goldman Sachs Alternatives in 2026. These transactions indicate that valuation expectations remain elevated despite market maturation, though successful execution increasingly depends on demonstrable growth and profitability improvements.
PE-backed accounting firms have pursued aggressive consolidation strategies, with the International Federation of Accountants reporting a fourfold increase in sector consolidation since 2021. However, successive ownership transitions introduce execution risks. Firms must justify elevated valuations to secondary buyers, sustain organic and acquisition-driven growth in a more competitive landscape, and navigate cultural integration across multiple ownership cycles. The long-term implications for partner economics, service quality, and professional stability remain subject to market validation as the flip cycle matures.
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