Almost half of accountants are at least open to investment from private equity firms, but a third are completely opposed to the idea — often vehemently so.
"PE is a cancer," said a manager at a midsized firm in Accounting Today's "State of PE in Accounting 2025" survey, and many of the 35% of respondents who said they were "Not all open" to PE had similarly strong feelings.
"PE firms are ruining the profession," said a partner at another midsized firm. "There are CPA firms owned by PE who are issuing fraud due to using outsourced, inexperienced resources with no relevant experience."
A senior at a third midsized firm questioned the entire basis of these deals: "Logically, how does it make sense to allow non-CPAs to buy up all of these firms? The new ownership structure is specifically designed to get around rules that states have made. I know why it makes sense: because a lot of partners are chasing the exit bag … . I am unequivocally opposed to PE firms. If the firm I work for ever sold to one, I would quit on the spot."
Still others pointed to the reputation private equity has of wringing value out of their portfolio companies at any cost.
"Historically, I do not like what I have seen private equity firms do to the companies they acquire," said a partner at a large firm. "The typical business model is to double or triple the fees and reduce the customer service experience for clients. This is not the mindset at our firm. … This is a relationship business which is not always meant to bleed every possible penny out of them, while cutting costs and ruining goodwill that took decades to build."
In some cases, though, those who opposed PE investment simply didn't see the need for it.
"First, our firm is financially stable and is making good money," explained a partner at one large firm. "Second, sharing the income that our firm makes with outside investors is not appealing. Third, we have a plan for where we are going and we don't need PE to get there."
A partner at a small firm concurred: "[Our] partners want to maintain control, and have no cash flow issues or other capital needs that cannot be met by current operating results. We run a lean machine without any plans for expansion beyond natural growth, and PE investment would be of no benefit to us at all."
A number of respondents noted disagreements within their partner groups, with splits over whether to even entertain the prospect of a PE deal.
Pros after cons
Just under a third of respondents (30%) reported that they were at least open to private equity, noting its potential to fund acquisition strategies, technology investments, and recruiting and retention initiatives — to say nothing of partner buyouts.
Still, their "openness" does not mean they don't have any reservations about PE.
"I'd be somewhat open to the idea of my firm receiving an investment from private equity because it could bring in additional resources that help the firm grow and stay competitive," said a director at a midsized firm. "Extra capital could support things like new technology, better training for staff and expanding service offerings. At the same time, I'd want to be sure that the firm's culture and client relationships aren't compromised, since those are really important to me. So while I see the potential benefits, I'd also be cautious about how it's structured and managed."
Similarly, a partner at a small firm said, "'I like the flexibility a private investment/private equity loan can offer and I appreciate the boutique feel of it. I would need to confirm all intangibles up front so that I know we are both getting a good deal."
And for others, "openness" is simply a matter of due diligence, not an expression of intent, as one manager at a very large firm pointed out: "It would be foolish not to listen to any offer, but we have no intention of following this path."
Plenty to be concerned about
Regardless of their level of openness to private equity, many respondents think that firms that partner with PE will face challenges on a number of fronts.
The potential impact on client relationships, service quality and employees topped the list, followed closely by cultural and operational integration.
What's more, respondents saw more stakeholders in the profession being harmed by PE investment over the next five to 10 years than being helped.
Over half (55%) think partners at firms that have taken PE investment will be positively impacted, and just under half (49%) think PE firms will benefit. Half or more of all respondents, however, believe the trend will have negative impacts for the accounting profession broadly, for clients, for small and midsized firms, and for employees at PE-backed firms.
And many had concerns about PE's overall impact on the profession, particularly in terms of its integrity and independence, and client perceptions of service quality.
Regardless of their feelings about private equity, or their concerns about the challenges it brings, most respondents seemed to agree that it is something that all firms will need to grapple with sooner or later.
"At some point our partner group will have to decide whether we want to continue down the path we are on [of staying independent]," said a partner at a midsized firm. "In the short term, we do. However, that may change over the longer term."
