Nearly half of mid-tier accountancy firms are now private equity-backed: what it means for practice owners
ICAEW research shows 46% of mid-tier accountancy firms have taken private equity investment, nearly double last year. This week's deals show what that means for owners of smaller practices.
If you own an accountancy practice, you’ve probably noticed the calls. Private equity is now reshaping the profession, and the evidence keeps growing.
The numbers
ICAEW’s latest research into mid-tier accountancy firms, published in May, found that 46% of the firms surveyed have now taken private equity investment, nearly double the 25% a year earlier. Most said the money was mainly being used to fund mergers, acquisitions and hiring.
The survey covered managing partners and chief executives of 35 mid-tier firms, those with between 11 and 249 principals. Separately, Crowe has estimated that around 20 of the UK’s top 60 accountancy firms are now private equity-backed.
ICAEW also noted signs that interest in taking on new private equity investment may be levelling off. But the firms that already have it are busy buying.
What it looks like in practice
Two deals in our tracker this week show the pattern:
- Shaw Gibbs, backed by private equity firm ECI Partners, bought WhiteHart, a family-owned travel sector accountancy firm in Richmond.
- DJH, backed by Tenzing, completed its largest deal so far, buying Surrey firm TWP, with around £7m of revenue and 70 staff.
In both cases, the firm being bought kept its name and team, a common feature of these deals.
What it means if you own a practice
There are more buyers than ever. For partners approaching retirement, a sale to a well-funded group can be an alternative to finding younger partners to buy them out.
Buyers look closely at who holds the client relationships. If most fees depend on one or two partners, expect questions about what happens when they step back, and a deal structure designed to keep them involved.
Not all the price may be cash. Private equity-backed groups often offer part of the price in shares in the wider group, sometimes called rollover equity, or link part of it to future performance through an earn-out. These can add value, but they also add risk.
Competition helps. With so many groups buying, talking to several, rather than accepting the first approach, usually leads to better terms.
What to do now
- Spread client relationships across your team, so the practice isn’t dependent on you.
- Get your numbers and processes in order, including recurring fee income, work in progress and client contracts.
- Understand any offer in full: how much is paid at completion, how much is deferred or in shares, and what’s expected of you afterwards.
- Take independent advice before agreeing to exclusivity with any buyer.
Read more: Why consolidators keep calling owner-run businesses, Earn-outs explained and this week’s deals in our deal tracker
Sources: ICAEW, Evolution of Mid-Tier Accountancy Firms 2026; Crowe. Exit Index provides general information, not financial, legal or tax advice.