Private equity in accountancy and audit sector

Private Equity (PE) refers to investment by third-party investors in private companies, aiming to generate returns through growth and operational improvements. Recent technological developments and market competition have led to increased PE investment in accountancy firms, attracted by their recurring revenues and growth potential. Third party investment in accountancy firms can come from different sources like staff or even family shareholding, long-term passive investors like pension funds, public listings, but currently private equity is the most prominent external investment in the sector.

Accountancy Europe publications

This page provides an overview of our research on PE and third-party ownership more broadly, including resources from our members and international organisations.

1. Private equity in European accountancy and audit firms: an update on market activity from January 2025 to April 2026 (July 2026)
2. Beyond private equity: third party ownership in the accountancy and audit sector (November 2025)
3. Private equity investments in accountancy firms (June 2025)

For more information on PE contact Endrin Bitraj: [email protected].

Background

The accountancy profession has traditionally been characterised by partnership structures and organic growth. Firms have expanded through internal development, long-term client relationships, and reputational strength, rather than external investment or acquisition.

However, fast-moving technological developments, digitalisation and increasing competition have led firms to invest more heavily to remain competitive. At the same time, third party investors, and especially PE investors have identified opportunities to invest in accountancy firms, attracted by their recurring revenues, cash flows and growth potential. There has been a notable increase in PE investments in the accountancy sector in recent years.

How has private equity activity evolved between 2015 and early 2026?

PE transactions in the European accountancy sector (2015–April 2026)

PE investment in the European accountancy sector has grown significantly over the past decade. Accountancy Europe gathered and analysed public data on PE investment transactions related to accountancy firms across Europe between 2015 and April 2026.

PE transactions number and percentage in Europe 

• From 2015 to 2020, PE activity in the sector was limited, with annual transactions ranging between 10 and 20.
• In 2021 and 2022, private equity (PE) activity remained relatively stable, showing only a modest increase.
• The market reached a clear turning point in 2023, when the number of PE transactions exceeded 100, almost three times the level recorded the previous year.
• Growth accelerated further in 2024, with around 200 transactions, nearly five times the number observed in 2022.
• This momentum continued into 2025, when transactions rose to 385, representing an almost ninefold increase in just four years. The trend has persisted in 2026, with 131 transactions already identified in the first four months of the year, putting activity on track to remain at similarly high levels.

Audit and assurance firms acquired by PE investors in Europe (2015–April 2026)

More than half of the deals (60%) involve primarily local accounting, tax, and advisory firms, while approximately 40% of the deals are in firms that also provide audit and assurance related services.

A similar trend can be observed for audit and assurance firms:

• 139 of the 385 transactions identified in 2025 involved audit firms, accounting for 36% of all deals.
• In the first four months of 2026, we identified 62 transactions involving audit firms, an increase of more than 33% compared with the same period in 2025.

This indicates that growth in private equity activity is continuing across the audit and assurance sector.

How are private equity firms structured?

A PE fund ordinarily invests in an accountancy and audit firm that undergoes legal restructuring into two distinct entities: an audit firm and a non-audit firm. The non-audit firm usually provides professional services and resources to the audit firm under an administrative services agreement (ASA).

What attracts third party investors (including PE) to the accountancy and audit sector?

• High client retention, stable and predictable cash flows
• Market fragmentation and buy and build approach
• Strong growth potential
• Reputation of the accountancy and audit sector

Why do accountancy firms engage with third party owners?

• Access to capital for growth and expansion
• Operational and management expertise
• Succession planning and ownership

What are the risks linked to third party ownership in the accountancy and audit sector

• Regulatory risk and early engagement
• Quality risk
• Ethical and independence concerns
• Cultural misalignment
• Engaging external advice and expertise
• Impact on the audit market
• Exit strategy risk

What opportunities does third party ownership create for the accountancy and audit firms?

• Investment in innovation and technology
• Consolidation, efficiency and synergies
• Talent retention and development
• Enhanced brand visibility and market reach
• Access to broader business networks

Outlook

Third party ownership is on the rise. Models such as PE are becoming more common across Europe and are reshaping the accountancy and audit profession. This trend comes with both opportunities and challenges, from growth and innovation to questions about independence, governance and audit quality. The debate is therefore not about whether third-party ownership will shape the future of the profession, but how its implications will be managed in practice.

Accountancy Europe does not take a position against or against third-party ownership. We bring together different perspectives so that policymakers, regulators, investors and the profession can have an informed and constructive dialogue.

Further resources:

• EFAA (2026): EFAA for SMEs – Position on Private Equity Investments in the Audit Market
• IFAC (2026): Private Equity Investment in Accountancy
• Wolters Kluwer (2026): Private equity in accountancy – Op zoek naar balans tussen waarde en waarden
• AFM (2025): Private equity in accountancy: balance sheet commercial and public interest under further pressure
• ICAEW (2025): What private equity might mean for a firm’s audit status
• ICAEW (2025): Evolution of Mid-tier accountancy firms (2025 research findings)
• University of Connecticut (2025): The Consequences of Private Equity Investment in Accounting Firms
• ICAS (2025): Private equity investment must respect need for audit quality
• IESBA (2025): IESBA Staff Alert – Private Equity Investment in Accounting Firms
• WPK (2025): Private Equity: Statement by the Board of Management [Vorstand] of the German Chamber of Public Accountants [WPK] on the Audit Market
• Financial Times (2024): Private equity’s interest in audit raises red flags
• FRC (2024): Letter: external private capital and audit firms
• FRC (2024): Annual Review of Audit Quality
• IFIAR (2024): Statement on Private Equity Investments in Audit Firms
• CAI (2021): The secret to successful private equity deals