The accounting profession is in the middle of a transformation unlike anything seen in a generation. Private equity, alternative practice structures, and an explosion of new ownership models are reshaping how firms grow, compete and serve clients. CalCPA gathered five industry experts at our recent Town Hall to make sense of the moment—and offer firm leaders a roadmap for what comes next.
A Moment Unlike Any Other
Dan Hood, Editor-in-Chief of Accounting Today and host of the firm-focused PE Summit, set the stage by stating the profession is experiencing a level of disruption it hasn't seen since the late 1990s—and this time, the changes are likely to stick.
Hood pointed to remarkable growth numbers as evidence: top 100 firms saw roughly 8.6 percent overall revenue growth last year, or closer to 15 percent when the Big Four are excluded. Merger and acquisition activity nearly doubled, from approximately 125 deals among top 100 firms to 225 in 2025 alone. The catalyst, in large part, is capital.
More Than Money: What PE Actually Brings
While a common misconception is that private equity is purely about acquisition capital, Hood and the other panelists emphasized that PE-backed platform firms bring far more than a checkbook.
“It’s not just the capital for acquisition, though that sort of makes headlines,” Hood explained. “It’s all the other things that private equity and other outside players are bringing into accounting firms—HR, technology, marketing and other areas that firms had pretty much had to figure out on their own.”
Thomas Bennett, Managing Principal at Baker Tilly—which crossed its two-year mark under private equity ownership—echoed that thought. He noted that rather than loosening standards around independence and conflicts of interest, Baker Tilly’s investors have pushed the firm to be more conservative “on potential risks of conflicts of interest and independence. We have become even more conservative with respect to potential conflicts of interest—not less. There’s nothing more valuable than our reputation, our brand and the sustainability of the firm.”
The Independent Path Is Still Viable—But Requires a Plan
Not every firm is or should be pursuing outside capital. A striking statistic from the conversation: 94 percent of firms remain outside any alternative practice structure. Tom Barry, Managing Partner at GHJ made a case for why independence, done strategically, is a competitive choice.
“For us, the simplicity of being our own bosses and driving independent allows us to make decisions that are really driven around our clients and our people,” Barry said. “There are trade-offs, but there’s an opportunity for us to thrive.”
But both Barry and Hood were clear: Firms that choose to remain independent must actively build a plan that accounts for a more competitive market—one where PE-backed competitors are recruiting aggressively, investing heavily in technology and bringing cash to acquisition tables.
“You can’t just be independent by default,” Hood said. “You’re going to have to have a plan to make sure that you’re able to stay strong and survive independently.”
The Talent Question: Culture Over Structure
One of the session’s most revealing threads was around talent. The panelists largely agreed that the ownership structure itself—PE or traditional partnership—is less important to professionals than the focus on people.
“It still really comes down to what drives people within an organization: relationships, opportunities, career paths, transparency,” Bennett said. “As long as we continue to focus on those things, the ownership structure is merely one way to facilitate bringing that to our people.”
Bennett also noted that PE ownership introduces a “new currency”—equity liquidity—that can be compelling for next-generation leaders who previously had limited options for realizing the value of their work within a traditional partnership model.
Standards, Risk and the Role of Peer Review
Rich Simitian, Director of CalCPA’s Peer Review Program, and Suzanne Holl, Executive Vice President at CAMICO, brought an important grounding voice to the conversation: the fundamentals of professional risk haven’t changed, but the complexity has increased.
“PE has not changed the risk profile per se,” Holl said. “But as you have inconsistency in culture, or not an appropriate governance structure in place, that’s where those risks become more of an issue. Following technical standards is just the floor for the public.”
Holl called for practical guidance that goes beyond technical standards: clear and consistent interpretation across standard-setters and regulatory bodies. “In the event of a claim, the last thing we need is ambiguity anywhere along the line,” she said. “Those plaintiff attorneys are going to leverage that.”
Simitian noted that peer review processes are actively evolving to address APS complexity, including a shift toward AICPA-level administration for firms in alternative structures—a move designed to build expertise and ensure consistency across administering entities.
What Firm Leaders Should Do Now
As the session closed, panelist offered one takeaway for firm leaders:
Barry: Address it head-on. “You can’t sit on the sidelines and think it’s going to go away, because I don’t think it is.
Hood: Get educated. “You can’t know enough about all the different options before you make a decision. There are so many options that you really have to get a lot of education before you make any moves.”
Holl: Prioritize culture fit. “The success relies upon making sure you’ve got the right culture fit. Don’t shortchange the efforts associated with that due diligence.”
Bennett: Build a real strategy. “Private equity won’t replace good strategy. You still have to have a good strategy in place. PE can be a catalyst for it, but it can’t turn a low-performing firm into a high-performing one.”
The profession, as CalCPA CEO Denise Froemming noted in closing, has navigated seismic change before. “We always come together, we talk, we make decisions, we have standards, and we all coalesce around commonalities,” she said. “I think this is no different.”
Check out the full Town Hall on demand by registering and accessing the event in your Activities. And be a part of the next Town Hall conversation on May 26.
