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Accounting Today just released its annual list of the fastest-growing accounting firms. Out of the top 26, only three have no private equity involvement.

The other 23? PE-backed, PE-owned, or built by merging PE-funded firms together.

This is the consolidation wave everyone in the profession has been talking about. It's not coming. It's here.

The Numbers Are Wild

Alan & James Partners grew 332% in one year. Richey May grew 200%. Baker Tilly nearly doubled after merging with Moss Adams.

Nine firms grew by more than 50%. Overall, 41% of all firms in the report posted double-digit growth. And almost all of it was fueled by private equity capital.

What PE Does to Accounting Firms

Private equity firms see accounting as a fragmented industry ripe for consolidation. Thousands of small and mid-size firms. Most are profitable. Most have aging partners who want to retire. Most lack succession plans.

PE firms buy those practices, roll them up into larger platforms, cut costs, standardize operations, and sell at a higher multiple. It's the playbook they used in dentistry, veterinary care, and home services.

For partners at mid-size firms, PE offers immediate liquidity. Instead of waiting years for a buyer, they can sell to a PE-backed platform and get paid now.

For employees, it's more complicated. PE-backed firms often pay higher salaries — but also demand higher utilization rates, tighter performance metrics, and faster growth targets.

The Three Without PE

Only three of the top 26 fastest-growers have no PE connection. Growing organically — lateral hires, client acquisition, niche specialization. That's increasingly rare. Organic growth is slow. PE growth is instant.

What This Means for CPAs

If you're at a mid-size firm, odds are you'll either be acquired by a PE-backed platform or compete against one. There's no third option.

If you're a partner considering retirement, PE offers a liquidity event you won't get from internal succession. But it means giving up control over culture, client relationships, and long-term strategy.

If you're early in your career, PE-backed might mean higher pay and faster advancement — but less flexibility, more pressure, and a corporate culture that prioritizes growth above all.

The profession is changing faster than most people realize. 23 of 26 fastest-growers. That's the stat that tells the whole story.