deal or no deal? the p.e. dilemma for cpas | accounting influencers

accounting influencers
with rob brown

in a striking shift that’s redefining the accounting profession, private equity is no longer circling—it’s landed. on a recent episode of the accounting influencers podcast, host rob brown breaks down what might be the most transformative trend facing accounting firm leaders today: the rapid influx of private equity (pe) into the industry.

“would you sell half of your accounting firm to a private equity firm for a billion dollars?” brown asks. “because some of the biggest names in our industry already have.”

and they’re not small names. baker tilly, the 10th largest u.s. accounting firm, recently sold more than 50% of its business to a private equity firm. grant thornton did the same. the motivations are clear: stay competitive, invest in technology, attract top-tier talent, and survive the pressures of a changing profession.

the episode lays out the perfect storm: firms are grappling with shrinking margins, relentless competition, and a talent shortage unlike any in recent history. against this backdrop, private equity offers a lifeline—cash, resources, and a roadmap for accelerated growth.

but the promise comes with caveats.

“with that capital comes leverage and debt,” brown warns. “is this injection of cash helping firms stay relevant, or is it putting them at risk of losing their independence?”

for younger professionals who value faster progression, flexibility, and purpose-driven work, pe-backed firms can be especially attractive. better pay, equity tracks, and investments in firm culture are part of the pitch.

yet there’s a risk that these moves prioritize short-term profits over long-term stability. “will this new structure lead to a short-term focus on profits at the expense of quality and client trust?” brown asks.

as more firms accept private equity money—at least five of the top 25 have already done so—concerns grow. chief among them: what happens when pe-owned accounting firms audit companies that are also owned by private equity?

the sec’s chief accountant has already flagged the risk. could this convergence of ownership erode auditor independence and open the door to regulatory scrutiny?

brown’s message is clear: pe is not a trend to watch from the sidelines. “if you’re a leader in an accounting firm, this topic should be on your radar,” he says. whether firms choose to partner with pe or not, the influence of outside capital is already reshaping hiring strategies, client relationships, and firm structures.

his advice? stay informed, stay aligned with your firm’s values, and lead from the front.

advises brown, “ask yourself: does your firm need private equity to stay relevant, or are you better off keeping full control and growing organically?”

5 key takeaways

1. pe offers capital for tech, talent, and growth—but may erode independence.
2. five of the top 25 firms are already in. more are on the way.
3. sec watchdogs are concerned about conflicts of interest.
4. leaders must balance fast growth with long-term trust.
5. pe might be the future—but it’s not a fit for every firm.