My 5 Accounting Industry M&A Predictions for 2025

Last week: 132 deals across 212 firms in 2024.

This week: Now over 140 deals and I'm sharing my data.

Here are my data-driven 2025 predictions in the accounting M&A world, plus how you can capitalize on each trend:

𝟭. Hyper-Specialization Reigns
The days of being a “one-size-fits-all” firm are over.

Niches to watch: AI-driven forensic accounting, e-commerce tax, and cannabis advisory.

For example: BeachFleischman acquired Indiva Advisors (12/4/24) to dominate the cannabis space.
• Your Play: Identify your niche and create a service package that commands premium pricing.
• Reality check: If you don’t specialize, you’re competing against PE-backed juggernauts that can outprice and outscale you.

𝟮. Open Architecture Models Rise
CPA firms are becoming one-stop advisory hubs by partnering with RIAs, ERP consultants, and legal advisors.

Why? Cross-selling opportunities. For instance, firms that integrate tax planning with wealth management often boost client lifetime value (CLV).
• The Play: Partner with complementary professionals to bundle services.
• Big takeaway: Open architecture firms will eat the market share of siloed competitors.

𝟯. Cross-Border Micro-Mergers
Global talent is no longer optional—it’s a part of just about every M&A/roll up strategy I've seen this year.

KNAV Advisory's minority investment (9/18/24) expanded its footprint into Europe, leveraging talent and cost efficiencies.
• The Play: Open remote positions for international talent or form a partnership with an overseas boutique firm.
• Pro tip: Use cross-border deals to access niche expertise and reduce labor costs.

𝟰. Tech-Centric Valuations
Firms with proprietary data analytics and AI stacks are commanding premiums.

Why? Tech reduces labor costs while boosting service capacity.
• The Play: Invest in automation tools like AI-driven client portals or workflow software.
• What to watch: If your tech stack looks like it’s from 2018, you’re falling behind.

𝟱. PE-Backed Succession Solutions
Private equity is transforming retirements into growth events.

Grant Thornton UK's deal with PE firm Cinven (just yesterday!!!) shows how outside capital can fund exits while scaling operations.
• The Play: Position your firm as a PE-friendly target by focusing on profitability, client retention, and efficiency metrics like Rev/FTE.
• Why this matters: Succession isn’t just about passing the baton—it starts with culture and you have to show your team the win-win too.

Accounting M&A is now at a crossroads.

Some firms will scale, specialize, and thrive.

Others will be stuck clinging to outdated models (see my recent Harvard Business Review post).