Top Accounting Firms Baker Tilly Moss Adams in $2B Merger Talks

You know something’s cooking when accounting firms start acting like Wall Street sharks. Baker Tilly, the Chicago-based heavyweight in the advisory and assurance ring, is reportedly making a $2 billion deal to acquire Seattle-based Moss Adams. If ink meets paper, the newly minted giant will rake in over $3 billion in annual revenue, leapfrogging over BDO and Grant Thornton to become the sixth-largest firm in the U.S. That’s right, only RSM would be bigger outside the Big Four.

From Suit-and-Tie to Buy-and-Merge

Remember when accounting firms were all about ledgers and calculators? Yeah, those days are long gone. Today, private equity is the fuel, and Baker Tilly is flooring it. Back in February 2024, they sold a majority stake to Hellman & Friedman, a move that turbocharged their M&A strategy. Now they’ve got Moss Adams in their sights, and with Moss Adams pulling in $1.3 billion in revenue and counting 400+ partners, this deal is more than just numbers. It’s a serious shake-up of the mid-market accounting playbook. We're talking about a combined force with a presence in 143 global territories and an increasingly borderless client base. Not to mention, Moss Adams brings SEC-registered audit clients to the table, 73 to Baker Tilly’s 38. Add that to the shopping cart.

Middle-Market Powerhouse

Call it what you will, but this deal isn’t about size for size’s sake. It’s a calculated move to own the underserved middle-market segment, where more companies are going global but still crave personalized service. With CBIZ snagging Marcum last year for $2.3B and forming its own juggernaut, Baker Tilly had a scoreboard to settle. And let’s not ignore the elephant in the boardroom: over one-third of the top 30 U.S. accounting firms have ditched the old-school partnership model in the past four years. The shift? Chasing scale, capital, and tech upgrades with private equity backing. The value proposition? Stable audit and tax revenue + platform acquisitions = a deal private equity loves to bankroll.

The Mid-Tier Firms

So, here’s the million-dollar question (or $2 billion, in this case):

Do you double down and build a platform? Or sell out while valuations are sky-high? This merger hints at what many in the industry already know: you either consolidate or get consolidated. And as firms feel the squeeze from staffing shortages, tech demands, and clients going international, the path to survival may very well be scale or bust. Grant Thornton’s proposed UK-Ireland merger? Check. Is CLA quietly assembling a top 20 global network? Check. The mid-tier is turning into prime-time real estate for investment and disruption alike.

Why Not Let AI Do the Heavy Lifting?

Meanwhile, on the Big Four front, EY is going full RoboCop on assurance services. The firm just rolled out its new AI-powered capabilities across global audit and assurance functions. Think less manual grunt work, more machine-driven insights, and a faster audit turnaround that doesn’t skimp on quality. EY’s global assurance head explained the move as part of a broader transformation aimed at “redefining how audits are performed”—and let’s be honest, it was overdue. With AI sharpening risk detection, anomaly spotting, and data validation, the assurance profession might finally be stepping out of the spreadsheet shadows and into the algorithmic age.

Of course, not everyone’s jumping on the AI bandwagon with both feet. But for EY, it’s not just about automation, it’s about staying ahead in an industry where even the middle market is now on steroids (thanks, PE money).

What This All Means for You

Whether you're in audit, tax, finance, or advisory, these headlines aren’t just FYIs, they're flashing neon signs of where the profession is heading:

• If you’re in a mid-tier firm, your world is about to change. Consolidation is no longer optional; it's a strategy.
• If you’re eyeing partnerships, be aware: that equity may soon come from Wall Street, not just the boardroom.
• And if you’re still skeptical about AI, EY is making a compelling case for getting cozy with your digital coworkers.

Final Thought

Let’s be real, this Baker Tilly–Moss Adams merger is likely just the next domino in a year already shaping up to be a blockbuster for accounting M&A. With interest rates stabilizing and private equity sitting on mountains of dry powder, this won’t be the last headline we see. So, grab your calculator (or maybe a chatbot), because 2025 looks like the year accounting stopped being boring. Timely trends, smart strategies, and financial deep dives—straight to your inbox. Join our newsletter and lead the conversation!