Home » Latest News » News » Private equity could soon own a third of top 30 US accounting firms

Private equity could soon own a third of top 30 US accounting firms

posted in: News 0

US-based firms Aprio, PKF O’Connor Davies, Carr, Riggs and Ingram, and Armanino are all planning to sell stake

Ten of the 30 largest accountancy groups in the US could soon be owned by private equity groups, the Financial Times has revealed

Atlanta-based accountancy firm Aprio was allegedly planning to sell a stake to Charlesbank Capital private equity firm, while PKF O’Connor Davies and Carr, Riggs and Ingram are engaging in further sales processes. Californian firm Armanino is also mulling on the sale to a private capital provider. 

The surge in deals within the industry has led to one-third of the top 30 firms either securing or being on the verge of securing private equity investment. 

But regulators have expressed concerns about audit quality and “tone” being affected by private equity ownership. 

The news comes after Grant Thornton’s US arm and Baker Tilly both recently agreed to sell a majority stake to two private equity firms, New Mountain Capital and Hellman and Friedman respectively. 

Alan Whitman, former chief executive of Baker Tilly, said to the FT: “Partners are waking up to the fact that there is a leverage to be had by tapping into the capital markets. The capital needs of the firms have increased exponentially in recent years, in terms of people costs and investments in offshoring and technology.” 

Source Accountancy Today