Danielle Tewes, CPA’s Post

https://lnkd.in/e4jakUZw This is in interesting article from a remarkably popular session at AICPA ENGAGE (it was standing room only, plus some people had to be turned away). As you read this, consider this question: Will Amber Goering's story become more commonplace with smaller firms and private equity?

Interesting developments in the US, where institutional investors are beginning to target top 10 firms, with Grant Thornton and Baker Tilly each selling majority stakes to New Mountain Capital and Hellman and Friedman respectively. Is this a sign of what is to come in the UK?

Interesting to see PE firms enter this space.

Great insights about the PE buying spree of audit and accounting firms from Chris Clapp, our National Private Equity Lead, in Accounting Today's latest article. Read the full article below. #CrossCountryConsulting #ABetterExperience #privateequity #privatequityfirms #accounting #audit

Interesting times for the Professional Services sector. The last few years have seen Private Equity money being invested within the accountancy sector with 2023 garnering some large deals across the smaller mid-tiers. Looks like investment and consolidation might be the way forward for the smaller mid-tier firms to better enable them to compete with the larger firms. Will be interesting to see how the market continues to evolve. #big4 #accountancy #privateequity #deals

I recently posted about another Professional firm seeking to raise external investment and release equity for partners. An article in the Times reveals that the private equity owners of Evelyn Partners, a wealth management firm that includes Smith & Williamson (an Accountancy firm) amongst its group, are seeking to sell a majority stake. As indicated in my previous post the downsides of a Professional Firms selling out to Private is that it will seek to obtain a return on its investment by selling. The same article reveals that a Dutch based buyout firm is looking at selling a majority stake in Cooper Parry, two years after investing. #privateequity #professionalfirms https://lnkd.in/eC_aCaSY

"Three top 30 US accounting firms have sold stakes to private equity firms, and several more have held talks. Proponents say such deals bring in capital to fund acquisitions and investment." I am wrestling with the end game of the PE's. Buying or leveraging practices requires finding profitable growth avenues to cover their risk-required ROI and to do this in a relatively finite period of time. The desire for stable cash flows... from audit and tax service lines - the profession and partnership models know how to do this. So, where is the hidden profit potential that the PEs are searching for to support their ROI?

Hot on the heels of the Baker Tilly PE investment, it now appears there is a real momentum shift in professional services firms linking up with private equity. I suspect many firms are reconsidering their positions to make sure they are at the table for the best deals out there, in the US and the U.K.

Since 2020, private equity firms and accounting firms have experienced a mutual attraction, with multiple deals making their way to the finish line. Experts say that trend is likely to continue. Allan Koltin, CEO of Koltin Consulting Group, joins Middle Market Growth conversations to discuss why accounting firms are transforming, how acquirers can determine which accounting firms are attractive targets, and the opportunities emerging in the sector. Want to learn more? Listen here: https://buff.ly/3OGqLbZ #ACGArizona #MiddleMarket