The International Federation of Accountants (IFAC) has published international research examining the rapid rise of private equity (PE) in professional accounting practices and its potential long-term effects.
The study looks at how this wave of investment is changing deal structures, internal governance, independence protections, audit quality, and competitive dynamics, including consolidation.
IFAC is also engaging with industry stakeholders to assess ‘professional attractiveness’.
The study identified more than 1,000 companies worldwide that received PE investment in the past decade, with significant increases in activity since 2022.
Although so far most transfers have been clustered in continental Europe, the UK and Ireland and the US, IFAC notes that this pattern is now permeating the entire international profession.
According to the study, fewer than 200 initial or direct PE deals led to the closing of 900 subsequent transactions, indicating a broader consolidation drive in accounting practices.
Fiona Wilkinson, Chair of IFAC’s Private Equity Task Force, added: “As chair of a volunteer task force established by IFAC last year, I have had the opportunity to engage with many experts in the accountancy profession representing a range of views on the potential risks and benefits of PE investment.
“I encourage leaders in the profession to do the same and evaluate whether, in the long term, companies that focus on the benefits and opportunities of PE investment – while managing the potential challenges and risks – can become more flexible, future-proof and more attractive, while remaining responsible for their public interest.”
IFAC added that it plans to continue working with its member institutions and wider stakeholders to monitor developments and share perspectives on the accountancy profession.
“IFAC Study Flags Growing Private Investment in Accounting Firms” was originally developed and published by Accountability, a brand owned by Global Data.
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