Why Private Equity Firms Are Betting Big on Accounting Firms
Accounting firms have suddenly become a goldmine for Private Equity Firms!
Yes, you heard it right!
In the fast-paced world of private equity (PE), where billion-dollar acquisitions and high-risk investments are the norm, a surprising sector has emerged as a safe, lucrative, and growth-driven opportunity- Accounting Firms!
With global accounting services growing at a CAGR of 7.15% from 2023 to 2030, accounting firms are rapidly emerging as a major focus for PE investors.
(Source: verifiedmarketresearch.com)
In fact, according to CFO Brew, “PE firms have bought stakes in five of the top 26 US accounting firms in less than three years”.
This trend is further highlighted by the fact that in 2021 and 2022, private equity firms took stakes in EisnerAmper (18th by revenue), Citrin Cooperman (23rd), and Cherry Bekaert (26th). Additionally, in February, Hellman & Friedman and Valeas Capital Partners secured a majority stake in Baker Tilly, ranked 10th largest, further emphasizing their growing interest in the accounting sector.
As market conditions evolve and the demand for advisory services soars, accounting firms are shifting from traditional roles of handling tax returns and audits to becoming strategic growth drivers, attracting the attention of private equity investors.
In this blog, we’ll break down in detail why accounting firms are the hottest new targets for PE investment and how this shift is poised to reshape the future of financial services.
