pe pushes partners toward extinction | accounting influencers

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accounting influencers
with rob brown

a stark warning is shaking the accounting profession: 65% of current firm partners will be considered “digitally obsolete” within three years. the unsettling part? private equity (pe) investors are not planning to retrain them—they are preparing to replace them.

on the latest episode of the accounting influencers podcast, host rob brown uncovers how private equity–backed firms are redrawing the profession’s leadership map. the digital divide is no longer theoretical. it is already defining who will lead the future of accounting and who will be pushed aside.

brown notes that pe-backed firms are investing an average of $50,000 per professional in technology and transformation—five times the level of traditional firms. that investment is not going into off-the-shelf software alone. it is fueling entirely new service models that many partners struggle to understand, let alone lead.

in one firm, half of the partners could not follow a presentation on digital strategy. “i realized i was becoming a dinosaur in real time,” one admitted. within six months, 40% of those partners were shifted into reduced roles or phased out entirely.

the digital divide is not simply about adopting new applications. it is about rethinking the very purpose and structure of an accounting firm. brown outlines three key differences between firms that thrive under pe ownership and those that stall:

• technology as reinvention: instead of automating old processes, progressive firms use technology to create new client experiences. some now offer real-time business intelligence platforms, replacing periodic reporting with continuous advisory.

• hybrid talent models: rather than trying to make every accountant a tech expert, pe-backed firms assemble teams that blend accounting skills with data analytics, process design, and digital expertise.

• redefined success metrics: billable hours are no longer the benchmark. firms now measure digital adoption, innovation impact, and client engagement scores. leaders unable to navigate this shift are quickly sidelined.

the future belongs to leaders who can bridge traditional accounting excellence with digital fluency. he highlights four must-have capabilities:

1. digital fluency—understanding how ai, automation, and analytics reshape client value.

2. innovation leadership—guiding transformation initiatives and building buy-in for new models.

3. business model reinvention—spotting opportunities for new services and revenue streams.

4. talent orchestration—leading diverse teams with complementary skills.

leaders should take four key steps: conduct a personal digital audit, get hands-on with transformation projects, build a network of digital peers, and reshape client conversations to focus on technology.

the profession’s most significant risk, brown warns, is not investing too much in transformation—it is investing too little, too late. pe investors are accelerating change at a pace that leaves no room for complacency.

“the transformation of accounting isn’t something happening to us,” brown says. “it’s something we need to lead. the question is, will you shape the future, or will you be left behind?”

1. 65% of partners could be digitally obsolete within three years.
2. pe firms are investing five times more in technology per professional than traditional firms.
3. hybrid teams and new success metrics are replacing old models.
4. leaders must master digital fluency, innovation, business model reinvention, and talent orchestration.
5. the biggest risk is waiting too long to adapt.