Private equity in the accounting sector

April 26, 2024

In a recent commentary for AB Magazine, Liza Robbins, Chief Executive at Kreston Global, highlights the increasing interest of private equity in the accounting sector, noting its substantial potential for growth and innovation.

Private equity firms are actively seeking investment opportunities within the sector, drawn by the consistent revenue streams, client loyalty, and the recurrent nature of business typical of accountancy firms. These characteristics make accounting businesses particularly attractive to private equity investors looking for stable and predictable returns.

There is a crucial role of technology in enhancing the efficiency and scope of services offered by accounting firms. The sector, she argues, is poised for transformation, particularly through the integration of automation and advanced data analytics. This technological evolution is essential not only for scaling operations but also for expanding into new service areas like internal audit, advisory, and cybersecurity, which are becoming increasingly vital to the industry.

There is an intrinsic strategic value of private equity in driving consolidation within the fragmented accounting landscape. She notes that private equity’s approach can accelerate mergers and acquisitions, enabling firms to achieve greater scale and competitiveness. However, Robbins also cautions that such transitions require careful due diligence to align the values and cultures of merging entities, ensuring that growth does not compromise the foundational attributes of firms, such as client relationships and service quality.

Liza Robbins understands the role of private equity in the accounting sector, acknowledging its capacity to inject capital and drive innovation, while also emphasising the importance of maintaining core values and client-centric practices during periods of significant transformation.

For further insights from Liza Robbins and her strategic vision for the accounting sector, click here. If you would like to speak to one of our experts, please get in touch.