Private equity investments in accountancy firms

Trends and insights in European markets (2015–2025)

Accountancy Europe’s information paper explores the evolution and impact of private equity (PE) investment in the European accountancy profession over the last decade. Based on publicly available data and case studies, it provides a neutral, fact-based overview of key developments, investment strategies, and market trends from 2015 to 2025.

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The rise of private equity in the profession

Traditionally, accountancy firms grew through organic expansion, long-term client relationships, and partner-driven governance models. However, rapid technological change, increasing competition, and the need to scale services have made external investment more attractive. PE firms, in turn, have recognised the accountancy sector as an appealing investment opportunity, given its stable cash flows, recurring revenues, and growth potential.

The trend, which began in the United States, has gained significant momentum in Europe—particularly from 2023 onward. PE activity in the sector increased from a modest 10–20 deals annually before 2022 to over 100 transactions in 2023 and approximately 200 in 2024.

Investment models and strategies

The paper outlines several PE investment models used in the profession:

• Growth Capital: Funding aimed at supporting organic expansion, such as digital transformation, entering new markets, or developing new services.
• Consolidation Strategies: Acquiring multiple small or mid-sized firms to form larger, more competitive platforms.
• Management Buyouts (MBOs) and Leveraged Buyouts (LBOs): Transactions where existing management teams acquire the firm, often using PE backing and debt leverage.

PE investment in audit firms

While PE interest is growing across the accountancy sector, regulatory constraints make it more difficult for PE firms to invest in audit practices. EU rules require audit firms to be majority-owned and controlled by qualified statutory auditors. As a result, about 60% of PE deals have targeted accounting, tax, and advisory firms, while 40% involve firms with audit and assurance services.

Nonetheless, PE investment in audit firms has tripled in 2023 and quadrupled in 2024, indicating a growing interest despite legal hurdles.

Country insights

PE activity has been concentrated in several key European markets:

• France: PE involvement has grown steadily. In 2023, Waterland acquired a minority stake in COGEP to support its growth and digitalisation. In Extenso and PKF Arsilon are additional examples of transformation and external investment.
• Netherlands: PE investment has increased significantly since 2022. As of early 2025, 21% of non-PIE audit firms are PE-backed, with projections estimating this could reach 30% by year-end. Key transactions include investments in DK Accountants, Baker Tilly Netherlands, and Crowe Foederer.
• Nordic Region: The activity of PE in the Nordic region (Denmark, Finland, Iceland, Norway and Sweden) began to emerge in 2021-2022 but like in the rest of Europe, PE activity surged in 2023 and 2024. In 2025, both PwC and KPMG Sweden continued this trend by divesting its SME audit division.
• United Kingdom: The UK remains the most active market, accounting for over 40% of all PE-backed accountancy deals in Europe. Notable transactions include Cinven’s acquisition of Grant Thornton UK and Waterland’s investment in Moore Kingston Smith.
• Other markets: In Belgium, firms like Moore Belgium and the PIA Group have received significant PE backing. In Ireland, Azets, Moore Kingston Smith, and Grant Thornton have all participated in PE-backed deals. Spain and Germany are also seeing early-stage developments, with notable transactions such as Auren acquired by Waterland and EQT’s strategic partnership with WTS Group.

Outlook and next steps

PE investment in the accountancy sector is no longer a niche trend but a growing part of the European professional services landscape. As consolidation accelerates and digitalisation reshapes business models, PE firms are likely to continue playing a significant role, especially in markets with fragmented firm structures and a strong SME focus.

Accountancy Europe will continue monitoring developments in this area and considers exploring:

• risks and opportunities associated with PE activity in future work
• a platform for dialogue on the evolving role of PEs in the audit and accountancy sector.

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