Strategic Growth and Service Diversification through Mergers & Acquisitions in Accounting (2025)
The accounting world's playing a new numbers game - and it's all about addition through subtraction. Over the past half-decade, we've watched mid-sized firms disappear from the roster like ledger entries at tax season, swallowed up in an M&A frenzy redrawing the industry map.
Take the CBIZ-Marcum marriage. When these two giants joined forces last quarter, they didn't just create a $2.8 billion behemoth - they rewrote the playbook for what a full-service advisory can be. It's the latest move in a high-stakes chess match where the prize isn't just market share but survival in an era where clients demand everything from AI-powered analytics to global tax strategy under one roof.
If we carefully analyze the trend over the past few years, the CPA firms are utilizing M&A, which helps them strategically achieve the following goals:
Expanded Service Offerings and Geographic Reach: Acquisitions allow firms to diversify their portfolios and enter new geographical markets.
Integration of Advanced Technologies: Embracing AI and Data Analytics to remain competitive is enabled through such deals.
Enhanced Market Positioning: M&A enables firms to respond to global competition and strengthen their brand presence.
Talent Acquisition and Retention: Mergers help firms access a wider talent pool, effectively addressing ongoing prevalent workforce issues.
These benefits strengthen the buyer and help them build more synergies in the sense to cater to more geographies with more service lines, and enhanced offerings.
Mergers & Acquisitions are purposedly known to help accounting firms gain a significant transformation. However, such deals are not just about financial figures. It is more about encompassing a fundamental rethinking of operational strategies and value delivery. One of the major advantages that accrues for the firm is consolidation, which helps it streamline processes, reduce redundancies, and capitalize on economies of scale. This results in enhanced cost efficiencies and greater profitability.
Talent Gap is hurting the accounting industry today. There is an acute shortage of skilled professionals, which has urged the firms to move to M&A, which helps them acquire experienced talent and specialized expertise. Such deals solve their current problems, strengthen the firm's capabilities, and help cultivate a robust pipeline for future leadership roles.
Another critical motivating factor behind the M&A Deal is the diversification of functional core areas. The bigger accounting firms acquire complementary service providers, which allows them to expand their offerings and provide clients with a more extensive range of solutions. This approach enhances client satisfaction and loyalty while minimizing the risks stemming from dependence on a single revenue line.
While talking about the immense potential behind the M&A deal, the success of these deals depends on careful planning and execution.
1. Cultural alignment: A seamless integration depends on merging firms sharing similar values and working styles.
2. Thorough due diligence: Financial, operational, and legal assessments must be rigorous to uncover potential risks and ensure a strong strategic fit.
3. Integration: Planning is an integral part of a successful deal. Minimum disruptions and synergy from technological platforms to personnel transitions are some things that need attention for the deal.
The successful firms that stand out always excel in these areas, leveraging the combined strengths of both entities to drive innovation and growth.
Let us understand some of the high-profile M&A deals that have happened in the accounting domain.
CBIZ and Marcum LLP: This $2.3 billion deal has positioned the combined firm as a leader in the accounting market of the United States. (https://cbiz.gcs-web.com/news-releases/news-release-details/cbiz-completes-acquisition-marcum)
BKD and Dixon Hughes Goodman (now Forvis, LLP): This merger helped create a powerhouse with $2.8 billion in revenue, offering expanded services and a wider market reach. (https://www.accountingtoday.com/news/bkd-and-dhg-complete-merger-unveil-forvis-wealth-advisors)
Aprio LLP and Aronson LLC: Aprio's strategic combination with Aronson demonstrates how firms can enhance their service offerings and grow their geographical footprint. (https://www.aprio.com/aprio-officially-welcomes-aronson-in-strategic-combination-names-rising-leaders-and-partners-for-2023/)
Let us talk about how successes happen in M&A deals, which is more about the factors apart from only the numbers. Such deals are more about the people involved - the employees, the retention, the cultural shift, and the client relationships built by the firm. Only a careful transition of these factors make or break a successful deal. A lot of firms do not consider this as a priority. But in reality, it is all about navigating through these complex challenges and the ones who do are successful.
As the industry undergoes consolidation, it progresses toward a future characterized by stronger, more capable organizations prepared to meet the diverse needs of businesses worldwide. But not all the deals go through in the way it is initially thought. However, the main thing to understand is that it is not always about the financial numbers, but a lot many other things. The industry will surely see more of such deals in this space in the coming years.
Firms want to grow faster, offer more services, and stay competitive. With rising tech demands and talent shortages, M&A helps firms scale efficiently.
Not at all! Mid-sized firms get benefits, too - they get access to better resources, tech, and talent. It’s about staying ahead in an industry that’s rapidly evolving.
Numbers matter, but culture and people matter more. Firms that focus on smooth integration, employee retention, and client trust see the best results.
Definitely! Some recent ones include:
Shawn Parikh is the CEO and Co-Founder of MYCPE ONE. A Chartered Accountant by qualification, he has over 15 years of experience of being a problem solver for small to mid-size firms and over time he has given consultation to thousands of CPAs, accountants and tax pros. Shawn has always been a big believer and advocate of social enterprises and small accounting firms & businesses. He consults and speaks on several topics ranging from Building Remote Team - Remote Working, Offshore Staffing, strategic planning, Scalability of Accounting Practice, cloud accounting, practice management, LinkedIn marketing, etc.
Shawn Parikh
-1733846011.webp "A Detailed Guide to Reviewing Merger and Acquisition Agreements (2025)")
Shawn Parikh
