New research from the International Federation of Accountants has revealed that private equity investments have impacted more than 1,000 accounting firms worldwide over the past 10 years, with deal-making activity ramping up significantly since 2022.
The research analyzes the rapid growth of private equity investment in accounting firms and its potential implications for the future of the profession.
“IFAC is sizing the scale of the trend and identifying its potential implications for transaction structures, firm oversight, independence and conflicts of interest, audit quality, consolidation and competition, and the attractiveness of the profession through research and extensive engagement with stakeholders, including firms, regulators, investors, and professional bodies,” New York City-based IFAC, a global organization that represents more than 188 professional accounting organizations in over 140 jurisdictions, said in a March 2 media release.
While transactions are currently concentrated in Continental Europe, the United Kingdom and Ireland, and the United States, the trend is increasingly shaping the profession globally, the IFAC says.
Over the last five years, an increasing number of direct private equity investments in accounting firms has led to a dramatically higher number of indirect or subsequent “roll-up” transactions.
The research indicates that fewer than 200 initial or direct private equity investments have facilitated nearly 900 subsequent transactions, underscoring a significant wave of consolidation across the profession.
Here are some other key findings from the research:
- 177 “initial” or “direct” investments have facilitated 875 subsequent “indirect” or “roll-up” acquisitions for a total of 1,052 “impacted” accountancy firm transactions between 2015-2025.
- In 2025, each direct PE investment resulted in 7.6 additional transactions. This “consolidation index” has increased four-fold since 2021.
- Most roll-up acquisitions target smaller accounting firms.
- Only about 25% of direct private equity investment involves assurance practices servicing public interest entities or stock exchange-traded companies. This percentage drops to under 10% for all transactions, including indirect or roll-up acquisitions.
- More than half of total private equity transactions don’t involve accounting firms that offer audit/assurance services.
“Regardless of ownership structure, the integrity, quality, and independence that underpin our work as professional accountants must remain non-negotiable,” IFAC CEO Lee White said in a statement. “Trust, confidence, and a steadfast commitment to the public interest are what define the profession—and they must continue to guide its future development. Some firms are exploring private equity as a way to accelerate transformation, strengthen their capabilities, and offer new career pathways.”
Fiona Wilkinson, chair of the IFAC’s Private Equity Task Force, added, “I encourage leaders in the profession to assess whether or not, over the long run, firms that focus on the benefits and opportunities of PE investment—while managing the potential challenges and risks—can become more resilient, future-fit, and more attractive, while upholding their public interest responsibility.”
Photo credit: zimmytws/iStock
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