How Private Equity Is Reshaping Accounting Firm Management—And How Traditional Firms Can Compete

3 MIN READ

JESSICA KENTCH, FOUNDING PARTNER, ABLAZE ANALYTICS & COLLECTIVE

The accounting profession is experiencing a seismic shift. Private equity (PE) is aggressively entering the space, transforming how firms are structured, operated, and valued. While this infusion of capital is fueling growth and modernization for some, it’s also raising critical questions for traditional firms:

• What does PE mean for us?

• How can we stay competitive?

• Will this affect our staff and culture?

Let’s unpack what the most strategic PE firms are actually doing post-acquisition—and what it means for the future of the profession and your day-to-day operations.

Not All PE Firms Are Created Equal

Before we dive in, it’s important to note: not all PE firms have the same playbook. Some take a thoughtful, long-term approach. Others are purely focused on consolidation, acquiring as many firms as possible without much regard for staff, clients, or legacy. Many PE firms are already facing roadblocks as they try to scale without truly understanding the nuances of our profession.

And that’s the heart of the issue: some PE firms lack experience in this space. They may underestimate the importance of relationships, staff continuity, and the complexity of services offered by traditional firms. These short-sighted approaches can lead to reputational damage—not just for the firm, but for the profession as a whole.

But when done well? PE can lift the entire industry. The key is to distinguish between extractive deals and transformational ones.

What the Best PE Firms Are Doing Post-Acquisition

Once a firm is acquired, PE investors move quickly to deliver returns. The strongest players are not just consolidating—they’re upgrading. Here are five strategic shifts we’re seeing from the best in the game:

1. Funding Partner Buyouts

With aging leadership and unclear succession paths, many firms face looming transitions. PE provides an immediate solution: capital for partner exits. This helps younger partners step into leadership without bearing the full financial weight.

But beware: even the best PE firms are motivated to lock up your practice early through exclusive negotiations. This avoids competition and tilts leverage in their favor. At Ablaze, we protect firm owners by creating a competitive buyer landscape, managing structured processes that drive up sale prices and reduce deal fatigue. Multiple qualified buyers give you leverage—and options—if terms suddenly change (which they often do).

2. Investment in Talent & Technology

PE-backed firms are investing heavily in people and platforms. From competitive salaries to cloud-based tools, they're building modern workplaces that attract the next generation of accounting professionals.

That means culture matters more than ever. Traditional firms need to focus on both compensation and connection—offering environments that retain top talent even as the talent market heats up.

🎧 Want to dig into firm culture? Check out our upcoming Ablaze podcast series, where we sit down with firm leaders navigating these exact transitions.

3. Applying Business Best Practices

PE firms often bring in sharp business discipline. They introduce scalable systems and proven playbooks—not just from accounting, but from other high-performing industries.

The result? Streamlined operations, reduced inefficiencies, and renewed focus on growth. The firm becomes more than a practice—it becomes a business.

📚 Need help professionalizing your practice? Our Analytics Academy at Ablaze can walk you through these upgrades.

4. Expanding Strategic Services

PE doesn’t stop at tax and bookkeeping. The push is toward value-added services like Financial Planning & Analysis (FP&A), virtual CFO services, and forward-looking advisory.

Firms like Citrin Cooperman are leading the way—transforming into multi-disciplinary platforms that offer more strategic value to clients. Traditional firms should take note: clients are expecting more than compliance.

5. Driving Up Valuations

As capital floods into the profession, valuations are rising. For firm owners, that means greater flexibility in exit planning and higher potential returns on equity. But again—those higher valuations go to firms that are modernizing and showing strong operational performance.

What This Means for the Industry

We’re at the dawn of a new era in accounting. The profession is evolving quickly, and firms that don’t adapt will be left behind.

A More Competitive Landscape

PE-backed firms have deeper pockets and broader service offerings. But not all will execute well. Those that fumble post-acquisition will create openings for agile traditional firms—especially those that double down on relationship-driven service and firm culture.

Cultural Clashes Are Coming

PE’s metric-driven mindset can clash with profession-first CPAs. Many firm owners are client- and staff-focused, while PE tends to manage "by the numbers." Expect friction—especially in firms slow to adapt to cultural and operational changes.

This Is a Time of Experimentation

Combine PE disruption with an aging workforce, tech advancements, and the rise of AI, and you get a perfect storm. The most forward-thinking firms will use this moment to experiment—with service lines, hiring models, and even pricing strategies.

This is accounting’s inflection point. The opportunity? Reinvention.

What Should Traditional Firms Do?

If you’re a traditional firm, here’s how to stay competitive:

• Invest in culture – It’s your biggest asset in retaining staff.

• Modernize your operations – Clients expect better digital experiences.

• Focus on value-added services – FP&A, advisory, and consulting are on the rise.

• Create leverage before selling – Don’t go into exclusive negotiations blind.

And perhaps most importantly: work on your business—not just in it.

At Ablaze Analytics, we partner with firms navigating these exact questions. From business intelligence dashboards to firm valuation support, we help you get clarity in this new landscape—whether you're preparing for a PE conversation or just want to run a better business.