Private equity consolidation in US accounting and law firms

Private equity investment in the United States’ accounting sector has accelerated, with more than 53 transactions between 2020 and mid‑2025 injecting roughly $29 billion. Analysts expect that by late 2025 over half of the 30 largest accounting firms will have some form of private‑capital ownership. Investors are pursuing platform models that acquire a large firm and then add regional practices, as well as umbrella networks that keep local brands while sharing technology, marketing and talent services. The capital is also being used to expand advisory and consulting offerings and to fund cloud, workflow‑automation and artificial‑intelligence tools.

In the legal market, direct private‑equity ownership of law firms remains prohibited, but firms are creating separate management service organizations (MSOs) that own the firm’s infrastructure, technology, AI and branding. More than 15 MSO deals were closed in six months, with roughly 100 additional transactions targeting AmLaw 100 firms, AI‑focused boutiques and estate‑planning practices.

A week later, the trend of acquiring small and medium‑sized accounting practices was noted to be driving up purchase prices and raising concerns that larger owners may increase fees and diminish client service quality. Business owners report frequent solicitations from buyers and fear the loss of personalized attention. Private equity is also positioning itself as a strategic partner in broader financial restructurings, mergers and digital transformation, exemplified by firms such as FD Capital that pair capital with expertise in financial management, operational efficiency and technology adoption.