Baker Tilly Is Now #6. Each PE Investment Leads to 7.6 More Acquisitions.

Baker Tilly is now the sixth-largest accounting firm in the United States after acquiring Moss Adams last year. That move — powered by private equity — is part of a consolidation wave that's reshaping the entire profession.

Here's the number that matters: Each private equity investment in an accounting firm leads to an average of 7.6 additional acquisitions, according to new global research from the International Federation of Accountants (IFAC).

That's not growth. That's a roll-up machine.

The Numbers Behind the Consolidation Wave

IFAC's report, released this week, found that fewer than 200 direct PE investments in accounting firms led to approximately 900 subsequent transactions in 2025 alone.

More than 1,000 accounting firms worldwide have taken PE investment over the last decade, "with activity accelerating significantly since 2022."

The consolidation index — measuring how many additional firms get acquired per PE investment — has increased four-fold since 2021.

Translation: PE isn't just buying big firms. It's using big firms to buy dozens of smaller ones.

Baker Tilly's Path to #6

Baker Tilly's acquisition of Moss Adams was the clearest example of PE-fueled consolidation working exactly as designed.

PE owns just under half of the combined firm, giving it enough capital to keep acquiring while maintaining the appearance of accounting firm ownership and control.

The result? Baker Tilly leapfrogged from mid-tier to Top 10 in one deal.

And it's not stopping. Cherry Bekaert CEO Michelle Thompson told CFO Brew in January: "The minute other firms took PE investment, it changed the acquisition playing field."

Cherry Bekaert has completed 15 acquisitions since taking PE investment in 2022. Its January acquisition of Tarsus was its latest.

What IFAC Found (Good and Bad)

The IFAC report explored both the risks and opportunities of PE-backed consolidation:

Possible risks:

• Higher fees for clients as competition decreases

• More investment in advisory services, less in audit and assurance

• Pressure to prioritize profitability over public interest

Possible opportunities:

• Better resourced and more resilient accounting firms

• More efficient service offerings through scale

• Ability to invest in technology and talent at levels independent firms can't match

"Regardless of ownership structure, the integrity, quality, and independence that underpin our work as professional accountants must remain non-negotiable," said Lee White, IFAC's CEO.

The First PE Flip

Last year marked another milestone: the first flip of a PE-backed accounting firm.

Citrin Cooperman was sold from one private equity owner to another — proving PE's thesis that accounting firms can deliver returns comparable to other professional services.

That flip signals maturity in the PE accounting playbook: buy, consolidate, optimize, exit.

What CPAs Need to Know

If you're at an independent firm, the competitive landscape just shifted permanently.

PE-backed firms have acquisition capital you don't. They can outbid you for talent, technology, and targets. The "everyone pitches in" model that worked for decades doesn't scale against firms with $50M+ acquisition budgets.

But PE also brings constraints: exit timelines, profitability mandates, and investor oversight that independent firms don't face.

The question isn't whether PE consolidation is good or bad. It's whether your firm has a strategy to compete — or whether you're the next acquisition target on someone's roll-up list.