If you own an accounting or CPA practice, the most active buyers today are larger firms, many of them now backed by private equity, that buy smaller practices to add clients, staff and locations. Platforms built by private equity specifically to bring regional firms together are buying too. Other CPA firms, family offices and individual practitioners remain buyers, especially for smaller practices.

What makes those buyers pay more is mostly predictable: clients who come back every year, no single client or partner the practice depends on, a staff that is staying, and a clear plan for who takes over the relationships when you step back.

The short version

  • Who buys: larger firms backed by private equity, platforms that combine regional firms, other CPA firms, family offices and individual practitioners.
  • What they pay more for: recurring tax, bookkeeping and advisory clients, low client concentration, a practice that does not depend on one or two partners, and a stable team.
  • How private equity deals work: firms that do audits must stay majority owned by CPAs, so investors buy into a separate company that does the tax and advisory work.
  • How to get the best result: put the practice in front of several of those buyers at once, confidentially, instead of taking the first offer that arrives.

Why private equity is buying accounting firms

Since 2024, private equity firms have invested in several of the largest accounting firms in the US:

The firms have said the money goes to technology, hiring and buying other firms, and Grant Thornton said its deal would also return capital to partners and buy out retirement obligations to former partners. Investors are drawn to work that clients need every year, such as tax and compliance, and many firms need a way to pay out partners who are retiring.

What that means for a founder

There are more buyers with more capital looking for practices than there used to be, and many of the firms buying smaller practices are now backed by private equity themselves. If you sell to one of them, expect questions about the structure of the deal: how much you receive in cash at closing, whether part of the price is paid in equity in the buyer’s company, and what you are expected to do after closing. Private equity owners also usually sell their stake later, as New Mountain Capital did with Citrin Cooperman, so ask how a future sale would affect you if you keep equity.

How the structure works

In the US, firms that do audits cannot be majority owned by people who are not CPAs. So private equity deals usually split a firm in two: a CPA-owned firm that keeps the audit and other attest work, and a separate company, partly owned by the investor, that does tax, advisory and other work. This is called an alternative practice structure. Crowe, for example, now operates as Crowe LLP, the licensed CPA firm that performs audits and reviews, and Crowe Advisory LLC, the company KKR invested in. State rules apply on top of this, so your own attorney and your state board of accountancy are the authority for your practice.

Who buys smaller accounting practices

The deals below come from public announcements. None of them is a Hello Exit transaction, and naming a buyer here does not mean it works with Hello Exit or is looking for any particular practice.

Firms and platforms backed by private equity

Other CPA firms

Regional and local firms without outside investors still buy practices and merge with each other, often to add a market, a specialty or the staff they cannot hire. For many owners, a merger into a larger firm is a way to retire while keeping clients with people they trust.

Family offices and individual practitioners

Family offices invest their own capital and can hold a practice for a long time. Individual CPAs and small firms are often the buyers for smaller practices, usually paying part of the price over time.

What accounting practice buyers pay more for

Every buyer looks at revenue and earnings first. After that, these are the things that most often move what a buyer will pay and how much of the price comes at closing.

Recurring clients

Tax returns, bookkeeping, payroll, outsourced accounting and ongoing advisory work bring clients back every year. Buyers want to see how many clients return, how much revenue each service line brings in, and how much is billed on a fixed recurring fee rather than by the hour.

Client concentration

If a few clients make up a large share of revenue, a buyer will ask what happens if one of them leaves. A practice with revenue spread across many clients is easier to buy.

Partner dependence and succession

Buyers look at who manages each client relationship and whether those people are staying. If you hold most of the relationships yourself, plan how they move to your team before or during the sale, because that handoff is what a buyer is paying for.

The team

The practice’s capacity depends on its staff, especially licensed CPAs and experienced managers. Buyers ask about turnover, compensation and how the team handles busy season.

Audit and attest work

If you do audits or reviews, that work stays with a CPA-owned firm in a private equity deal. Know how much of your revenue is attest work, because it shapes which buyers fit and how a deal would be structured.

Clean financials and systems

Buyers will ask for several years of financial statements, revenue by client and service line, and how work is tracked and billed. Documented processes and current software make the practice easier to integrate.

Why it pays to have several buyers at the table

The same practice can look very different to different buyers. A platform entering your region may value your location and team. A firm with a specialty may value one group of your clients far more than the rest. A local firm may value continuity for clients it already knows. When you talk to only one of them, you only learn what that one will pay.

Putting the practice in front of several qualified buyers at once, confidentially, tests price and terms against each other. Buyers learn who you are only after signing an NDA, so staff and clients do not find out early.

Hello Exit is a sell-side M&A advisor for founders selling businesses from $1 million to $400 million, and it is the team behind 1,000+ acquisitions and exits. Every engagement starts from accurate information. Hello Exit’s Exit Report is an advisory estimate that shows the strategic case, where strategic buyers exist, and the financial case side by side, along with an honest read on readiness. If the practice is not ready to sell, Hello Exit says so and helps you get there first.

See how the process works, from the first confidential call to closing, what Hello Exit does, and what M&A advisors charge.

Size matters too. Below roughly $1 million in value, a direct sale to a nearby firm or through a practice broker is usually the practical route. Above $400 million, an investment bank is usually the better fit.

Before you talk to buyers

Common questions

Who buys accounting practices?

Mostly larger firms, many backed by private equity, platforms that combine regional firms, other CPA firms, family offices and individual practitioners. Which of them fits depends on your size, your services, your clients and your region.

Can private equity own a CPA firm?

Not the part that does audits. In the US, firms that do audits must be majority owned by CPAs, so private equity invests in a separate company that does tax, advisory and other work, while a CPA-owned firm keeps the attest work.

Will I have to stay after I sell my practice?

Usually for a transition period, so clients move to the people who will serve them next. Some buyers also tie part of the price to how many clients stay. The more relationships your team already holds, the shorter and lighter that commitment tends to be.

Is my practice big enough for an M&A advisor?

Hello Exit works with businesses from $1 million to $400 million in value. Below roughly $1 million, a direct sale to a nearby firm or through a practice broker is usually the better route.