By Mari-Anne Kehler and Derrick Coleman
While private equity-backed mergers and acquisitions dominate headlines, a growing number of firms are finding success by choosing a different path.
Private equity dollars continue to reshape the accounting and advisory industry. The five fastest-growing firms of last year are all backed by private equity. Still, many firms are asking a critical question: Is it possible to grow without giving up control?
The answer is yes. But it requires clarity, commitment, and a strategy built for sustainable independence.
Independence is not the answer for every firm, and private equity investments do present this industry with ample opportunities. But for those hoping to remain independent, the ability to preserve culture, maintain long-term client relationships, and chart their own course offers distinct advantages.
The case for independence
A third of the 30 largest CPA firms in the U.S. have at least some backing from private equity companies, according to CFO Brew. Yet, some firms are resisting losing that majority control.
“Firms are facing growing demands—from evolving client needs to accessing new technologies and talent,” observed CalCPA CEO Denise Froemming. “For some, partnering with an equity firm is a way to access the capital and resources to keep up. But that path is not for everyone. Many firms are choosing to stay independent so they can grow on their own terms and preserve the people-first, client-first culture that defines them.”
Instead of investments from private equity, some professional services firms are seeking growth through strategic leadership hires, building out new practices, or acquiring firms with similar cultures and values. These organizations still want to scale—but not at the cost of their identity. They recognize the value of a positive culture and its ability to foster employee retention, engagement, and loyalty—and they are not willing to outsource that.
- KEY TAKEAWAY: Redefine what growth looks like. Committing to independence successfully means redefining what growth looks like. Rather than pursuing size for its own sake, independent accounting and advisory firms should focus on building high-value services, strengthening relationships, and scaling responsibly.
Intentional growth through leadership
For firms that choose to remain independent, intentional growth often means making deliberate decisions about when and how to scale to ensure each step forward aligns with core values, client needs, and the firm’s long-term vision. It also requires maintaining the agility to adapt quickly without waiting on approval from outside investors.
“What drives our independence is a desire to create long-term value for clients while maintaining a culture that supports our people,” said GHJ Managing Partner Tom Barry. “We grow with purpose, not pressure. That gives us the flexibility to serve clients in a way that aligns with their needs, no matter how quickly they may change.”
And independent firms can still compete with larger players—it simply requires a different playbook.
“As firms weigh their growth options, leaders need to think about the kind of firm they want to build, including the culture they are creating and their ability to deliver the value their clients expect,” Froemming added.
- KEY TAKEAWAY: Own your growth. Independence is not about resisting growth; rather, it is owning it. With strong leadership, accounting and advisory firms can scale strategically while staying true to their purpose. Those who define their identity early and make decisions through that lens can better navigate disruption, respond to market changes, and build enduring client relationships. Independence, when paired with clarity and conviction, becomes a powerful business strategy.
Culture as a growth engine
A firm’s culture can offer much more than just its internal value. Based on a global survey by the Society for Human Resource Management (SHRM), 83% of employees in good or excellent cultures say they are deeply motivated to deliver high-quality work, compared to 45% in poor or terrible cultures. In a competitive labor market, culture drives productivity, retention, and recruitment.
Today’s workforce often seeks connection and flexibility. Because of market shifts, employees want to feel seen and valued. Firms that listen, adapt, and deliver on that promise can thrive, regardless of their size.
Growth-minded firms also recognize that internal culture must continue to evolve alongside their external footprint. As firms expand geographically, add new services, or bring in diverse talent, culture should not remain static. It must be actively cultivated.
And a strong internal culture can create the right alignment for firms to scale without sacrificing their identity.
The connection between internal beliefs and external strategy ensures that as firms scale, its culture remains a source of strength and differentiation. Values must grow with firms—meaning, they are embedded in every decision, from hiring and onboarding to service delivery and client engagement.
- KEY TAKEAWAY: Align culture with strategy. Growth should reinforce a firm’s values, not dilute them. Ensure that every strategic initiative reflects the firm’s mission, whether it involves hiring practices, client onboarding, or service innovation. Culture is not a line item. It is the foundation on which independent firms build lasting success.
Leveraging AI and automation to scale responsibly
Independent firms often have less resources and, therefore, have to stay more nimble than those with outside investments. Automation and technology provide these organizations with a way to improve processes and free up their teams.
According to a report from McKinsey & Company, current generative AI and other technologies have the potential to automate work activities that absorb 60% to 70% of employees’ time. The goal of implementing process efficiencies through automation and technology, notably, is to enhance human expertise—not replace it.
“By integrating AI and automation into workflows to create efficiencies, organizations can improve accuracy and free up their professionals to focus on more strategic work,” said GHJ Director of IT Jerry Leever. “This is not in an effort to replace headcount. It is to enhance the ways in which employees can work and serve clients.”
This includes automating repetitive tasks in audit and tax by using AI to surface insights from client data and adopting tools that support remote collaboration. This approach prioritizes transparency, security, and human oversight.
“AI does not need to be a supercomputer that solves the toughest accounting and financial challenges,” stated Kendale King, founder and owner of CPAcon. “It is a starting point—a sounding board—and can be used to simplify data or complex information that helps leaders address problems through a more innovative lens.”
- KEY TAKEAWAY: Invest in technology for scale and efficiency. Leverage AI and automation to optimize operations; but do so with intention. Technology should enhance, and never replace, professional judgment. The right tools can free up time for higher-value client work, support firmwide visibility, and future-proof firms’ infrastructure without compromising quality.
Scalable by design
Maintaining independence does not mean avoiding rigor. Independence is built on some of the same principles that private equity-backed accounting and advisory firms follow. It includes standardizing operations, building scalable service delivery models, and developing next-generation leaders. Even if firms have no intention of selling, their business model might still be attractive to private equity investors.
This approach keeps firms at the cutting edge of technology, services, and people. It enables them to respond quickly to new opportunities to innovate while still maintaining full control of their direction.
These investments in talent, technology, and enhancing service lines are driven by what clients need, not what a boardroom demands. This provides firms the freedom to innovate and forge their own path.
- KEY TAKEAWAY: Keep thinking big. Independence does not mean thinking small. Firms that build scalable systems, invest in leadership, and embrace innovation can match the rigor of private equity-backed organizations while maintaining the freedom to grow on their own terms.
Independence is a long game
Remaining independent in a consolidating market is not for the risk averse. It requires clarity of purpose, thoughtful investment, and long-term discipline. But for many firms, independence offers the freedom to build something lasting.
ABOUT THE AUTHORS:
GHJ Partner and Chief Strategy Officer Mari-Anne Kehler, CDP, leads GHJ’s business strategy and oversees business development, marketing, and branding. She brings more than 30 years of experience helping organizations grow with purpose. Known for her ability to translate vision into action, she draws on deep expertise in strategic planning, collaboration, innovation and executive coaching. Her work spans professional services, finance, consumer brands, and the media and entertainment industries.
GHJ Partner and Search and Staffing Practice Leader Derrick Coleman leads GHJ’s Search and Staffing Practice and has more than 20 years of experience in the field. He oversees a robust accounting and finance recruiting branch, develops new business, supports existing clients, and manages the internal staffing and recruitment team. He works with leading organizations across the country.
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