5 accounting firm M&A predictions for 2025

I recently analyzed 132 deals across 212 accounting firms for 2024. The 2025 predictions I'm about to share are not investment advice, so please take it with a grain of salt and use your own judgement.

With that said, let's dive in: In 2024, private equity money flooded the accounting M&A market. Top players scooped up niche firms left and right. The $2.3 billion CBIZ-Mar­cum megamerger (finalized in November) wasn't alone — private equity is now center stage.

It's causing excitement and apprehension in the small-to-midmarket space (some partners are raging at outside capital).

Check out the recent wave:

• Dean Dorton's Florida pick-up of Shilts CPA on Dec. 5 and LBMC's Memphis move to add Frazee Ivy Davis show targeted expansion.
• Citrin Cooperman's spree (Clearview on Nov. 14, Signature Analytics on Nov. 13) shows relentless reach.
• PKF O'Connor Davies' capital injection (on Nov. 18) sets a new mid-market financing bar.

Not just big names — smaller firms too:

• BerryDunn and Burzenski & Co. (Dec. 1), expanding in Connecticut;
• LGA and McGaunn & Schwadron (Dec. 4), deepening veterinary/dental niches; and,
• KNAV Advisory's minority investment (Nov. 18), fueling global presence.

To put it in perspective:

Mid-market and regional firms are grabbing specialty shops — cannabis (BeachFleischman and Indiva Advisors on Nov. 4), valuations (KSM and ValueKnowledge on Nov. 12), and in many other areas. PE-backed platforms are stacking bolt-on deals, building full-service powerhouses.

Five predictions for 2025

• Hyper-specialization reigns: Firms will zero in on ultra-niche areas (think AI-driven forensic accounting), leaving generalists scrambling.
• Open architecture models rise: CPA firms will partner with RIAs, ERP consultants and even legal advisors to become one-stop advisory powerhouses.
• Cross-border micro-mergers: Expect global mini-deals, just like KNAV merging in HLG Netherlands (Nov. 8), as firms chase unique talent and clients worldwide.
• Tech-centric valuations: Proprietary data analytics or AI stacks will influence deal pricing more than any traditional book of business metrics.
• PE-backed succession solutions: Outside capital will transform partner retirements from liabilities into strategic exit or growth opportunities.

For some, these moves will open the door to scale, differentiate and become indispensable. For others, it's a stark warning: Adapt or risk irrelevance.