Accounting firms sell to private equity and build their own AI as the supply of new CPAs shrinks

How the business works

Only CPAs can own the audit practice, so investors buy into the rest of the firm

The US had 650,667 actively licensed certified public accountants (CPAs) in August 2026. NASBA The 100 largest firms on Accounting Today's list took in $140.8 billion in fiscal 2025, up 8.6%, and the Big Four (Deloitte, PwC, EY, and KPMG) took about two-thirds of that. Accounting Today Below them sits a long tail of tens of thousands of smaller firms.

The firms on our list sit in the middle: national and large regional firms with roughly 2,000 to 9,000 people. The table shows how they differ from the firms around them.

Revenue and fee splits from Accounting Today's 2026 Top 100.

Partners own the firm under rules that keep audits in CPAs' hands

A traditional firm is a partnership: partners buy in with their own capital, share the profits, and get their capital back, not the firm's market value, when they retire. PICPA State laws require CPAs to hold a majority of any firm that signs audits. So an investor can't buy the auditor.

Firms that take private equity split in two, in what's called an alternative practice structure. A CPA-owned firm keeps the audit work, and a separate company, part-owned by the investor, takes tax, advisory, and most of the staff, which it leases back to the audit firm. PICPA When KKR invested in Crowe in 2026, its money went into Crowe Advisory, and Crowe LLP kept the audits. Sovereign Magazine

Private equity went from none to half of the top 20 in five years

More than 53 private equity deals with US accounting firms closed between 2020 and mid-2025, bringing in $29 billion. In 2020, none of the 30 largest firms had outside private capital. NJCPA By June 2026, CFO Brew counted ten of the top 20 owned, or about to be owned, by private equity, after KKR's deal for Crowe and Reverence Capital's for Eide Bailly. CFO Brew

A few large firms chose other routes. BDO USA became owned by its employees through an employee stock ownership plan (ESOP) in 2023, financed with $1.3 billion of credit from Apollo. Accounting Today Andersen listed on the New York Stock Exchange in December 2025. Andersen CLA (CliftonLarsonAllen), the largest firm on our list, stayed a partnership and was paying for a $500 million technology plan itself as of 2025. Thomson Reuters

The economics in 2026

Midsize firms grow fastest as private equity pays for mergers

The pipeline of new accountants has been shrinking for a decade. The chart shows degrees and new CPA exam candidates from the latest data of the American Institute of CPAs (AICPA).

Three pressures sit under the growth:

• AI is cutting the hours firms sell. The median billing rate rose nearly 7% in two years to $170 an hour, but RSM says AI can cut a 20-hour tax report to 10 hours. RSM is investing $1 billion in AI over three years. Bloomberg Tax In one survey of large firms, 35% of accounting firms said clients question their pricing because of AI, and 67% plan to keep headcount flat. Accounting Today
• Offshoring is now standard. 86% of the 100 largest firms in INSIDE Public Accounting's ranking use offshore staff, up from 83%, and 68% send tax returns offshore. IPA
• Regulators are rewriting independence rules. The AICPA's ethics committee proposed rules for private equity structures in December 2025 and plans a second draft after an October 2026 meeting. Journal of Accountancy The draft would bar a firm from auditing companies its own investor controls. Winston Taylor

What is changing

Accounting firms change how the work gets done in five ways, starting with who owns the firm

The biggest shift is who owns the firm. Private equity is now the default path for large firms, and every new entrant to IPA's top 100 in 2026 was backed by it, as were nine of the ten fastest growers. IPA

From 2023 to 2026, the firms changing most are doing one or more of five things. The first three match the three groups of leaders on our list.

The innovators

Seven accounting leaders on our list are rebuilding how their firms work

Seven accounting leaders are among The Originals. Each runs a firm of about 2,000 to 9,000 people, and each has made a dated, costly change to how the firm is owned or how the work is done. The highest scorers are Jen Leary of CLA (7.6), Christopher Geier of Sikich (6.1), and Richard Kopelman of Aprio (5.2).

Building their own AI

Jen LearyOn the list · 7.6 of 10

CEO, CLA (CliftonLarsonAllen) · Minneapolis; partner-owned, roughly 9,000 people and $2.1 billion revenue; CEO since 2021

Jen is spending $500 million on digital tools and AI. As of 2025, CLA was funding the plan as a partnership, without private equity. CLA bought the UK AI company Engine B in 2024, and in July 2026 started co-building an AI-native accounting platform with Digits, training a model of its own.

“This moment demands a clear point of view: AI should not belong only to the biggest companies and the biggest firms with the largest budgets.” source

Ask aboutWhat CLA's own model knows that a tool every firm can license doesn't, and what partners gave up to fund it without an investor.

Steve StagnerOn the list · 4.0 of 10

CEO, Current · Tampa; formerly Crete Professionals Alliance, backed by Thrive Holdings; more than 2,000 people at almost 30 accounting firms

Steve runs a holding company that buys independent accounting firms and gives them technology only the largest firms could afford. Engineers from OpenAI work inside the company, and its tax AI processed 7,000 returns in the 2026 season. In June 2026 it renamed itself Current and said it plans to hold its firms indefinitely.

“We're arming the rebels.” source

Ask aboutWhat a partner at a 50-person firm does differently once Current's tax AI arrives, and how Current measures it.

David WurtzbacherOn the list · 3.9 of 10

Founder and CEO, Ascend · Arlington, Virginia; backed by Alpine Investors; more than 20 firms with over $700 million in revenue

David founded Ascend in 2023 as a partnership of accounting firms that keep their own names and leaders. He bought an offshore provider in India the same year to serve as Ascend's own team, and in 2024 hired a chief AI officer from the software company Bench to build tools in-house.

“One of the big, unsettled questions in the industry today is about how you protect sensitive data and keep quality up to professional standards while innovating with new technologies.” source

Ask aboutWhich tools Ascend has built itself, and who owns them: the platform, the investor, or the member firms.

Changing who owns the firm

Michelle ThompsonOn the list · 4.3 of 10

CEO, Cherry Bekaert · Raleigh, North Carolina; backed by Parthenon Capital since 2022; more than 3,400 employees; CEO since 2018

Michelle split Cherry Bekaert in 2022 into a CPA-owned audit firm and an advisory company backed by Parthenon Capital, one of the first large firms to do so. She told partners and staff herself in a week of firm-wide meetings, and the firm has since bought regional firms in Pennsylvania and Texas.

“Our growth strategy focuses on expanding advisory services, accelerating through strategic M&A” source

Ask aboutWhat she'd tell a managing partner signing a private equity deal next month, four years after doing it herself.

Charly WeinsteinOn the list · 3.7 of 10

CEO, EisnerAmper · New York; backed by TowerBrook since 2021; 475 partners and 4,700 professionals

Charly led EisnerAmper's 2021 deal with TowerBrook, one of the first private equity investments in a top-20 firm, and in March 2026 TowerBrook moved its stake into a continuation fund rather than sell. In 2025 he named a partner as the firm's chief AI officer.

“To remain a leading-edge accounting and business advisory firm, we must get increasingly innovative products, services, and information to our clients faster. AI is a path to that goal,” source

Ask aboutWhat changed when TowerBrook stayed on through a continuation fund instead of selling, and what partners expect from the next sale.

Christopher GeierOn the list · 6.1 of 10

Chairman and CEO, Sikich · Chicago; about 2,000 people; Bain Capital holds a minority stake

Christopher took a $250 million minority investment from Bain Capital in 2024 while Sikich's leaders kept majority control, and has said the old partnership models are dying. In April 2026 he bought the IT consultancy Burwood Group to grow the firm's technology business.

“But I think once people understood that the old models are dying and we had to take destiny by the hand, it was clear that we had to make a strategic move.” source

Ask aboutWhat ownership looks like for a Sikich partner now, and why he chose a minority investor over selling control.

Selling new kinds of service

Richard KopelmanOn the list · 5.2 of 10

CEO, Aprio · Atlanta; more than 3,400 team members

Richard turned Aprio into an accounting firm that also practices law: the Arizona law firm Radix Law joined Aprio as Aprio Legal in May 2025, under the state's rules that let non-lawyers own law firms. In 2026 his staff began building audit agents with Fieldguide, and Aprio launched a fund to invest in AI startups.

“Aprio Ventures is about building the firm our clients will need in the future.” source

Ask aboutWhat clients buy from Aprio Legal that they wouldn't buy from a separate law firm, and what Arizona's rules still stop him from doing.

Four leaders outside the list are making similar moves

These leaders aren't on the list. Each has made a change to who owns the firm that's worth asking about.

Kurt Gresens

Managing Partner and CEO, Wipfli · Milwaukee; more than 3,000 people in the US, India, and the Philippines

Kurt sold New Mountain Capital a 40% stake in August 2025, enough to fund growth while the firm stays majority-owned and led by its partners. Accounting Today

“Wipfli has been on the offensive, scaling smartly and profitably. And now, we're accelerating the course we already set with this investment.” source

Ask aboutWhy a minority deal, and what New Mountain can and can't decide.

Jeremy Hauk

Managing Partner and CEO, Eide Bailly · More than 3,500 employees and $800 million revenue

Jeremy agreed in June 2026 to bring in Reverence Capital Partners, which CFO Brew reports took a majority stake at about a $1.8 billion valuation in the 109-year-old firm. CFO Brew

“As the current stewards of a 109-year-old firm, it's important to us to leave it better for the next generation.” source

Ask aboutWhat the partners debated longest before saying yes.

Alan Badey

CEO, Citrin Cooperman · New York area; owned by Blackstone since 2025; more than 3,600 professionals

Alan has run Citrin Cooperman through two private equity owners, New Mountain and then Blackstone, and in October 2026 bought the AI consultancy Rosetree, whose engineers build and run AI systems for clients. Business Wire

“Everything we're doing with AI is focused on delivering more value to our clients” source

Ask aboutWhat changed when the firm moved from its first private equity owner to its second.

Mark Vorsatz

Chairman and CEO, Andersen · Co-founded the firm in 2002; listed on the New York Stock Exchange since December 2025

Mark took a partner-run tax and advisory firm public rather than sell to private equity, and plans to use the money for technology and new services such as law.

“Going public isn't about monetization” source

Ask aboutWhat being a public company lets Andersen do that a private equity owner wouldn't.

The wider field

The Big Four and AI startups set the pace midsize firms react to

A few of the largest firms and fast-growing vendors shape what the leaders above can do. They set the going rate for audits, for staff, and for software.

Large firms

• Grant Thornton Backed by New Mountain Capital since 2024, it agreed in July 2026 to buy CBIZ for about $5 billion, creating a firm of more than 34,500 people.
• RSM Investing $1 billion in AI over three years and testing pricing that doesn't depend on hours.
• KPMG Owns a US law firm, licensed in Arizona in 2025 under the state's rules for non-lawyer owners.
• BDO USA Became owned by its employees through an ESOP in 2023, financed with $1.3 billion of credit.

Companies selling the tools

• Basis Builds AI agents for accounting firms; raised $100 million in February 2026.
• Black Ore Sells AI that prepares tax returns; says it's used by 40% of the top 20 CPA firms.
• Fieldguide Audit and advisory software; raised $75 million led by Goldman Sachs Alternatives in February 2026 and co-builds audit agents with Aprio.

How clients find a firm

Firms win clients by referral and pay brokers, networks, and offshore providers to grow

Most new clients still arrive by referral. In a 2019 survey, 79% of firms named referrals from other professionals, such as bankers and lawyers, as a top source of new clients, and fewer than 10% named advertising. Accounting Today AICPA rules allow a firm to pay or receive a referral fee as long as the client is told, and ban commissions from clients the firm audits. AICPA Code of Professional Conduct Firms spend their money on the channels around the work: brokers who sell firms, networks that share referrals, and offshore staff.

Networks and brokers make money from consolidation

Independent firms pay dues to join networks such as BDO Alliance USA and CPAmerica, which share expertise and pass work across regions and specialties. BDO Brokers and advisers sell firms to private equity platforms and to each other; Poe Group Advisors, for example, is paid only when a deal closes. Poe Group Advisors

Software companies pay the firms that bring them clients

Intuit is replacing its ProAdvisor program with ProPartner Accountants in 2027, paying top firms up to 25% of net billings for clients they bring to QuickBooks, for up to three years. CPA Practice Advisor

State boards are watching but haven't changed the ownership rule

No state lets non-CPAs own a majority of a firm that signs audits. Several boards are studying private equity structures:

Five leaders run the main channels

Phil Whitman brokers many of the deals. The four below him run the largest network of independent firms, an association built on independence, an offshore provider, and the body writing the independence rules.

Phil Whitman

CEO and President, Whitman Advisory · Brokers sales of accounting firms to private equity and to other firms; co-chairs Accounting Today's private equity summit

Phil's firm brokers many of the private equity deals for accounting firms, and it lists Aprio, Cherry Bekaert, and Ascend among its clients.

Ask aboutWho pays his fee when a private equity platform buys a smaller firm, and how he handles that conflict.

Michael Horwitz

Executive Director, BDO Alliance USA · Run by BDO USA; 248 member firms in 720 locations

Michael leads the largest US network of independent firms, which share expertise and pass work to each other. In 2026 it admitted two firms owned by a private equity-backed group.

“This is not the time to say I'll wait to see what happens,” source

Ask aboutHow independent members feel about sharing referrals with firms whose owners may later try to buy them.

Grace Horvath

President and CEO, CPAmerica · An association of more than 90 independent firms; part of Crowe Global

Grace runs a network built on member firms staying independent, at a time when many of its peers have sold to investors.

“Their leadership and innovative approaches will undoubtedly enhance our ability to deliver outstanding value to our more than 90 member firms, fostering collaboration and growth within our association.” source

Ask aboutWhether a member that takes private equity can stay in the association.

Vijay Pahuja

Group CEO, QX Global Group · An offshore accounting provider backed by Long Ridge Equity Partners; CEO since July 2026

Vijay took over one of the providers that staff US firms' tax and bookkeeping work from India, as 86% of the largest firms now use offshore staff.

“QX has built a genuine leadership position serving the mid-market through long-standing client relationships” source

Ask aboutWhat a US firm will pay QX for in 2028, as AI takes over more preparation work: hours, results, or software.

Mark Koziel

President and CEO, AICPA · Leads the American Institute of CPAs, whose ethics committee writes the independence rules for private equity structures; CEO since the start of 2025

Mark runs the body deciding how far private equity owners can reach into the firms that audit. Its committee plans a second draft of those rules after an October 2026 meeting.

“Accounting is a technology-powered profession, and STEM recognition simply reflects today's reality.” source

Ask aboutIf the final rules stop firms from auditing their investor's other companies, who will audit those companies.

Trade-offs

Six trade-offs divide the accounting leaders you'll meet

Most leaders on our list have picked a side on several of these. In our reading, asking which side they picked, and why, gets to their strategy faster than asking about trends.

Before a first conversation

Firm leaders want to talk about AI and who owns the firm next

In the AICPA's 2026 survey of 629 firms, managing change from technology and AI ranked first among firms with more than 500 professionals, and staff retention third. AICPA The survey doesn't ask about private equity, but large firm leaders have had to answer questions about it from investors and from their own partners.

Seven mistakes mark an outsider

• Saying private equity owns the audits. State law keeps the audit firm in CPAs' hands; investors own the advisory company. Ask how the separation works in practice.
• Calling partners employees. Equity partners are owners who bought in with their own capital, which is why a private equity offer is a partner vote and a personal wealth decision. PICPA
• Assuming it's quiet outside tax season. Fall brings extended tax deadlines and audit planning, and advisory work runs all year.
• Saying AI will replace accountants. Leaders hear it often, and they care more about who gets the time AI saves: the client or the firm. Bloomberg Tax
• Comparing them to the Big Four. Most midsize leaders define their firms against the Big Four. Let them raise it.
• Guessing at deal terms or valuation. They're private, and partners may be bound by confidentiality.
• Treating private equity as good or bad. Leaders on both sides have thought about it harder than you have.

Ten questions get a firm leader talking about the work

1. If AI takes out half the hours in a tax return or an audit area, who gets that saving: the client, the partners, or reinvestment? Who decided?
2. What does a first-year associate do here in 2026 that they didn't do in 2022?
3. Your peers rank managing change from technology and AI first. Where has change been hardest: the tools, the pricing, or the partners?
4. How do you judge a good partner now, if hours and realization stop telling the story?
5. Offshoring is now standard in the largest firms. Has it changed how you train people at home, since the preparation work used to be the training?
6. The 120-hour path to a license is arriving in most states. Does it change who you recruit, or only how fast they get licensed?
7. For a firm that stayed independent: what did your partners have to believe, and what did they give up to fund it themselves?
8. For a firm with an investor: what changed in the first year that you didn't expect?
9. When a partner retires here in ten years, what do they walk away with, and how is that different from what your predecessors got?
10. What do clients ask you for now that they couldn't have asked for three years ago?

Where they gather

Eight events bring these leaders together before July 2027

Accounting Today's private equity summit draws the leaders weighing a deal. AICPA ENGAGE is the profession's largest yearly gathering, and the Digital CPA conference draws the people rebuilding firms around technology.

Glossary

Twenty-four terms come up in the first ten minutes

AICPA

American Institute of Certified Public Accountants: the national professional body, which writes the ethics and independence rules for private-company audits.

Alternative practice structure

A firm split in two: a CPA-owned firm that does audits, and a separate company, often part-owned by investors, that does everything else.

Attest

Work in which a firm vouches for someone else's numbers, such as audits and reviews. Only CPA-owned firms can do it.

Big Four

Deloitte, PwC, EY, and KPMG, the largest firms, which audit most large public companies.

Billable hour

Pricing by time spent; still the default, and under pressure from AI.

Busy season

January to April, when tax returns and year-end audits pile up.

CAS

Client accounting and advisory services: outsourced bookkeeping, controller, and finance chief work billed monthly.

Continuation fund

A new fund a private equity firm sets up to buy a company from its own older fund, so it can hold the company longer.

CPA

Certified public accountant: a state-licensed accountant, the only kind who can own a majority of an audit firm.

EBITDA

Earnings before interest, taxes, depreciation, and amortization; the profit figure private equity uses to price a firm.

Equity partner

An owner who bought into the firm and shares its profits; a non-equity partner has the title but a salary.

ESOP

Employee stock ownership plan: a trust that owns shares on behalf of employees.

Independence

The rule that an auditor can't have financial or business ties that could bias an audit, in fact or in appearance.

Offshoring

Using a firm's own staff or a provider's staff abroad, mostly in India, for preparation work.

PCAOB

Public Company Accounting Oversight Board: the federal regulator that inspects auditors of public companies.

PEEC

The AICPA's Professional Ethics Executive Committee, which is writing the independence rules for private equity structures.

Peer review

The required outside inspection of a firm's audit and accounting work.

Realization

The share of a firm's standard fees it collects after discounts and write-offs.

Rollover equity

The stake partners keep in the firm after a private equity deal instead of taking all cash.

Second bite

The payout partners hope for when the first private equity owner sells the firm.

The scrape

The cut to partners' pay after a private equity deal, which raises the earnings the investor bought.

120-hour path

A route to a CPA license with a bachelor's degree plus two years of experience, replacing the 150-credit-hour rule in most states.

Utilization

The share of a person's hours that are billed to clients.

Value pricing

Pricing by the result or a package agreed in advance, rather than by hours.

Read more

Three pieces explain private equity and AI in accounting

• Private Equity Investment in Accounting Firms: A Look Behind the Curtain (PICPA) A plain explanation of how a private equity deal is priced, what partners get and give up, and why audits sit in a separate firm.
• Some firms are rejecting private equity in favor of independence (Thomson Reuters Institute) How CLA and smaller firms fund themselves without outside money.
• AI efficiency gains push accounting firms to reimagine pricing (Bloomberg Tax) What happens to the billable hour when AI cuts the time a job takes.