Across the accounting profession, consolidation is reshaping the landscape. Whether driven by mergers and acquisitions, private equity or other capital investment, this wave of change has led to the disappearance of many independent, local CPA firms — especially those with 20 to 50 team members or $5 million to $10 million in annual sales.
Ironically, these are the very firms that many acquirers now seek. Often referred to as "platform firms" by PE groups or other acquirers, they serve as the strategic foundation for future growth and hold unique appeal thanks to their size, structure and flexibility.
The benefits of being a $5 million to $10 million firm aren't just for those looking to sell. For firms that want to grow, attract talent, retain top clients or future-proof their operations, this middle tier represents a powerful sweet spot.
Here's why more firms should be setting their sights on the $5 million to $10 million range — and why those that get there are changing the game.
Enhanced management
Firms in this size range can build a true management infrastructure — often including a firm administrator, controller, HR director, marketing lead and technology director.
This support structure drives recruiting and retention, giving talented professionals the systems, mentorship and career development opportunities they expect. It also creates a workplace culture where accountants can stay focused on client service and long-term relationships rather than administrative burdens — making it a draw for those seeking both professional growth and a supportive work culture.
At the same time, having seasoned operational leaders makes the firm more scalable and resilient, with clear leadership beyond the partners and a foundation that can adapt to growth or market change.
Knowledge expansion
Firms in the $5 million to $10 million range can support niche practices, develop internal specialists and build a reputation as trusted advisors in specific industries.
This expanded knowledge base strengthens marketing, recruitment, profitability, efficiency and client satisfaction, positioning the firm as a more sustainable business.
Professional leverage
Firms in the $5 million to $10 million range benefit from greater visibility and credibility in the talent market. Recruiters often prioritize these firms because they're more likely to offer structured career paths, competitive compensation and clear cultures — elements that appeal to today's top candidates. Furthermore, as PE-backed firms increasingly rely on internal recruiters, independent recruiters are turning to midsized firms to sustain their pipelines and remain competitive.
This hiring advantage extends beyond recruiters. Larger firms are more likely to be eligible for exclusive membership in CPA associations, which can open doors to staff training, benchmarking resources and broader networking opportunities.
These advantages make it easier to attract and retain strong professionals who want to grow with a firm that is invested in their success.
Diversification of services and ownership
Firms in the $5 million to 10 million range often reach a critical mass that allows for bolder decisions — not just in what services they offer, but in how they are structured and who gets a seat at the table.
This size gives firms the capacity to expand into non-traditional offerings, such as HR advisory, financial planning, technology enablement, valuation and CAS — providing embedded expertise without overextending resources or diluting their brand.
It also opens the door to creative ownership models where the experts in the nontraditional areas might become equity partners with the traditional CPAs. The ownership potential that could be offered would motivate the specialist and create long-term accountability.
Client upgrading
For many closely held, successful businesses, midsized CPA firms offer the ideal balance of scale and service. A $5 million to $10 million firm — or one of 25 to 50 people — isn't too large to feel impersonal, nor too small to handle complex needs. It's just right for clients who want attention, experience and continuity.
When larger firms consolidate or are absorbed into mega-firm structures, clients often feel lost in the shuffle. Some proactively seek new advisors who can provide personalized service without the bureaucracy or pricing structures of PE-backed giants.
This migration creates a powerful opportunity for firms in the $5 million to $10 million range: Attract higher-caliber clients, align with more sophisticated work and strategically shed unprofitable or legacy accounts that no longer serve the firm's goals.
The result is a firm that positions itself as the accounting and advisory practice of choice — offering the ideal blend of capability, care and long-term value.
True owner impact
In a firm of 25 to 50 people, partners have real influence over the firm's direction, culture and future. Their voices don't just echo — they help shape strategy, drive innovation and define success.
At the $5 million to $10 million level, ownership isn't diluted across dozens of decision-makers. Partners feel a true stake in the firm's success — and greater control over their own professional lives and livelihoods. They see their ideas come to life and directly benefit from the firm's growth.
In contrast, partners at mega-firms may find their impact diminished, their decision-making authority constrained, and their day-to-day work further removed from the firm's mission. For those who value autonomy and legacy, midsized ownership delivers impact that can't be replicated in a mega-firm model.
Building and engaging community
Midsized firms are often deeply rooted in their communities and better positioned to make a tangible, lasting impact. Whether through sponsorships, pro bono work, financial education efforts, or board and committee leadership, these firms don't just operate locally; they invest locally.
This visible presence builds trust and loyalty, turning the firm into a go-to resource not just for clients, but for community leaders and emerging enterprises.
Over time, community engagement strengthens brand reputation, talent attraction and client retention — proving that doing good can also drive meaningful growth.
A steady, focused approach
The consolidation wave sweeping the accounting industry shows no signs of slowing. As firms navigate M&A, capital investment and market disruption, the $5 million to $10 million tier stands out — not as a stopping point but as a launchpad for long-term success.
Whether your goal is to attract buyers, become the firm of choice for closely held business clients, or expand your team, skills, and presence in your market, the $5 million to $10 million tier offers more than just scale; it offers staying power.
In a time of accelerating change, becoming the size of a platform firm isn't just smart. It's a pathway to critical marketplace and lifestyle advantages.
