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 them with a grain of salt and use your own judgment.

With that said, let's dive in:

First, let’s look at the lay of the land

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 mega-merger wasn’t alone—private equity is now center stage.

It’s causing excitement and apprehension in the small-to-mid market space (some partners are delighted at this windfall capital injection and are rallying behind the opportunity for more capital to help with firm growth and partner buyouts).

Check out the recent wave:

• Dean Dorton’s Florida firm pick-up and LBMC’s Memphis move show targeted expansion.

• Citrin Cooperman’s spree (Clearview, Signature Analytics) shows relentless reach.

• PKF O’Connor Davies’ capital injection sets a new mid-market financing bar.

And it’s not just big names—smaller firms are making moves too:

• BerryDunn + Burzenski & Co. expanding in Connecticut.

• LGA + McGaunn & Schwadron deepening veterinary/dental niches.

• KNAV Advisory’s minority investment fueling global presence.

To put it in perspective:

Mid-market and regional firms are grabbing specialty shops—cannabis (BeachFleischman & Indiva Advisors, valuation (KSM & ValueKnowledge), and human capital (EY & Jubilant).

PE-backed platforms are stacking bolt-on deals, building full-service powerhouses.

With all that said, here are my predictions for 2025.

5 predictions for M&A and PE in accounting for 2025

1. Hyper-specialization reigns

As CPA firms zero-in on ultra-niche areas (think AI-driven forensic accounting), generalists will struggle to keep pace.

Picture a mid-sized practice spinning off its routine tax work to form a dedicated forensic analytics division—instantly becoming the go-to solution for high-stakes litigation.

The key to pulling this off is hiring data analysts early and investing heavily in proprietary analytics, allowing these hyper-specialists to command premium fees and dominate their chosen niche.

2. Open architecture models rise

Instead of remaining siloed, CPA firms will link up with RIAs (Registered Investment Advisors), ERP (Enterprise Resource Planning) consultants, and boutique law practices to create one-stop advisory powerhouses.

Imagine a traditional audit team that teams up with an IT consulting group and a boutique M&A law firm, offering a seamless suite of services from financial due diligence to post-merger system integrations.

This approach is all about forging strategic alliances in adjacent fields, bundling offerings, and delivering a unified client experience that boosts credibility as well as revenue.

3. Cross-border micro-mergers

As firms chase global talent and niche client bases, we’ll see more cross-border mini-deals—like KNAV merging in HLG Netherlands.

It’s a less risky way to explore new territories, diversify service lines, and tap into specialized expertise.

The real trick is identifying target regions where you can both import sought-after skills and export your unique strengths, structuring smaller deals that yield big synergies without the massive gamble of a full-scale merger.

4. Tech-centric valuations

In 2025, proprietary data analytics and AI stacks will overshadow traditional book-of-business metrics in M&A negotiations.

Picture a lower-tier firm with an AI platform, like Taxplow for real-time tax planning and value pricing, suddenly outvaluing larger competitors that lack comparable tech.

Building IP in automation and analytics—and making it the centerpiece of your story—can dramatically inflate multiples, attracting investors who see cutting-edge innovation as the new gold standard.

5. PE-backed succession solutions

Outside capital will transform partner retirements from costly obligations into strategic growth plays.

Consider a legacy firm where half the partners are near retirement, selling a minority stake to a PE group and using the influx of cash to fund leadership development and expand advisory services. 

Done right, this setup lets retiring partners cash out gracefully while empowering younger ones to reinvest in the firm, ramp up innovation, and steer the next wave of expansion.

What does this all mean for accountants in 2025?

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.