For decades, accounting firms were viewed as the buttoned-up corner of the professional services world — dependable, discreet, and rarely disruptive. But that’s exactly why private equity is suddenly interested. In a surprising twist that’s shaking up the financial sector, dealmakers are setting their sights on one of the least likely hotspots for innovation: CPA and accounting firms.

This isn’t a one-off trend. Private equity investors are zeroing in on the accounting industry for its resilient cash flows, loyal client bases, and an abundance of founder-led firms ripe for modernization. The sector’s long-standing image of conservatism is proving to be a hidden asset — one that promises stability, scalability, and strong margins in a time of uncertainty. 

Why CPA Firms Are on the PE Radar

At first glance, the interest might seem surprising. Why would investors known for high-growth tech bets or blockbuster roll-ups want a stake in a 10-person firm doing audits and tax prep? But scratch the surface and it starts to make sense.

Recurring Revenue. CPA firms typically enjoy steady, predictable revenue thanks to recurring services like tax filing, audits, and consulting. Clients tend to stick with their accountants for years, if not decades, which makes these businesses highly bankable in terms of cash flow.

Highly Fragmented Market. There are over 80,000 accounting firms in the U.S., the vast majority of which are small, founder-led operations. That fragmentation creates a perfect environment for roll-up strategies: buy several smaller firms, integrate them under one brand, and suddenly you’ve got scale and pricing power.

Founder-Owned. Many of these firms are owned by seasoned founders, often with no defined succession plan in sight. PE investors are stepping in with offers that include capital for growth, operational support, and an exit path for retiring owners—all while preserving the firm’s legacy.

Five CPA Firms PE Already Invested In

We peeked into our platform to research  the firms where private equity is already making investments.

  1. CohnReznick
  • Why It Matters: Stone Point’s backing has allowed CohnReznick to accelerate its expansion strategy, invest in modern technology infrastructure, and significantly grow its presence in high-demand advisory services like ESG, risk, and compliance. The deal marks a key shift toward transforming the firm into a full-spectrum consulting powerhouse.
  1. Citrin Cooperman
  • Why It Matters: This move funded a flurry of acquisitions, enabling the firm to expand geographically and diversify its service offerings. Once a regional player, Citrin is now establishing a national footprint with an eye on middle-market dominance, particularly in high-growth sectors like healthcare, tech, and advisory.
  1. Carr, Riggs & Ingram
  • Why It Matters: With PE support, CRI has launched a multi-state expansion across the Southeast, acquiring niche firms and integrating them under a unified platform. The backing has also enabled investments in talent development, cybersecurity, and workflow automation, positioning CRI as a fast-moving consolidator in the second-tier market.
  1. EisnerAmper
  • Why It Matters: The deal marked one of the earliest and most visible examples of a top-20 accounting firm taking PE capital. The funding has supported EisnerAmper’s aggressive M&A push and fueled its transformation into a tech-enabled advisory platform with national scale.
  1. Schellman & Company
  • Why It Matters: Specializing in cybersecurity and compliance audits, Schellman represents the niche-specialist angle of PE interest. Lightyear’s investment helps the firm scale its services in a high-demand, high-regulation sector—a smart hedge against broader market volatility.

What the PE Deals Look Like

Private equity is bringing in full strategic playbooks to level up CPA firms from boutique shops to regional or even national powerhouses.

Take CohnReznick and Citrin Cooperman, for example. Both have recently taken on strategic investments from private equity firms. The deals have helped them expand their footprints, modernize tech stacks, and grow into new service lines like ESG consulting, advisory services, and digital transformation.

Firms like Carr, Riggs & Ingram have embraced the roll-up model, acquiring smaller firms to build scale. PE firms often provide the capital and back-office functions while allowing the acquired firms to retain some operational independence. It can be likened to franchising, but for financial expertise.

What Founders Should Consider

Private equity offers small CPA firms a compelling value proposition: growth capital, operational resources, and a pathway to succession. For many founders, these are exactly the tools needed to remain competitive in an increasingly tech-driven and talent-scarce industry.

Access to capital enables investment in technology, recruitment, and geographic expansion. At the same time, PE firms bring managerial acumen and professional networks that can streamline operations and drive efficiencies, allowing founders to refocus on strategic leadership and client relationships.

However, these benefits come with real considerations. Founders must evaluate whether a PE partner’s vision aligns with their own. Cultural compatibility is critical; a PE firm’s emphasis on aggressive growth targets may not always mesh with a CPA’s desire to maintain long-term client trust and firm legacy.

Accounting’s Modern Makeover

The transformation of CPA firms is not just financial — it’s operational, technological, and cultural. With PE capital fueling innovation, these firms are evolving beyond tax and audit to become fully integrated advisory platforms.

Cloud-based systems, AI-enhanced audits, and specialized consulting services are no longer the exception but the expectation. As these capabilities expand, CPA firms are moving into roles that more closely resemble strategic partners than service providers.

Even the Big Four — Deloitte, PwC, EY, and KPMG — are watching closely. While they dominate the upper tiers, it’s the middle-market and regional firms, newly backed by PE, that are poised to become the accounting industry’s fastest risers.

The influx of private equity into the accounting sector reflects a clear, data-driven strategy: invest in firms that offer recession-proof services, strong client retention, and significant potential for technological modernization.

As dealmakers explore this evolving landscape, Cyndx’s AI-powered platforms can help identify and assess founder-owned CPA firms ready for investment. Whether you’re hunting for acquisition targets or analyzing growth potential, reach out to us now to learn how to gain the intelligence needed to move with speed and precision in this fast-developing sector.