The number of public accounting firms merging, acquiring, and restructuring (e.g., exploring PE investments, exploring an IPO, exploring an ESOP, exploring SPACs, etc.) is at an all-time high in 2024 with this trend anticipated to intensify throughout 2025 and beyond. Accounting firms merge primarily to expand their market reach, gain access to enhanced talent, achieve economies of scale by operating more efficiently with a best-in-class technology stack, address succession planning needs for retiring partners to mitigate the bursting baby boomer bubble, and potentially gain a competitive advantage by combining subject matter expertise and diversified services across a larger client base; essentially allowing them to grow faster and offer a wider range of service offerings to clients while attracting new prospects.
Some of the primary reasons for accounting firm mergers, acquisitions, and restructuring include but are not limited to:
- Growth and Market Expansion:
Entering new geographic areas and / or industry sectors by combining with another firm already established there.
- Strategic Talent Acquisition:
Solving staffing shortages by bringing in subject matter experts from another firm.
- Succession Planning:
Providing an exit strategy for senior partners nearing retirement age to mitigate the bursting baby boomer bubble.
- Cost Savings:
Achieving economies of scale by combining administrative functions and reducing internal overhead costs.
- Diversification:
Broadening service offerings by merging with a firm specializing in different service lines including advisory, attest, tax, accounting, wealth management, and much more.
- Competitive Market Advantage:
Gaining a larger market share and potentially commanding higher engagement fees by combining with a competitor.
While we are only a few weeks into the month of December 2024, there have been six notable merger and acquisition deals that have already been announced before the calendar year 2024 comes to a close including Cherry Bekaert acquiring two more accounting firms: DeBlanc, Murphy, & Murphy along with Katz Nannis + Solomon; Aprio acquiring two more accounting firms: Pontiff + Associates and Elite Tax & Accounting; Platform Accounting Group merging in DHS Advisors; and Delucchi Hawn is combining with PP&Co.
The CPA Magazine Monthly Public Accounting M&A Report is published once per month, but notable M&A updates are available in real time under the breaking news section.
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