A quiet revolution is underway in the world of accounting. As private equity (PE) continues to extend its influence across the professional services sector, a new wave of accounting firms is re-evaluating how they raise capital and fuel expansion. Increasingly, the answer appears to be the public markets.
In a landmark move, UK-based accountancy network MHA recently completed a £98 million listing on London’s AIM exchange—marking the first public debut by a UK accounting firm in over ten years. Rather than selling a majority stake to private equity, MHA opted for a partial listing that allowed it to maintain control while raising capital for strategic acquisitions in markets like Greece and Cyprus.
A Pivot Away from Private Equity
MHA’s leadership believes IPOs offer an alternative growth model—one that doesn’t come with the short-term pressures often tied to PE ownership. CEO Rakesh Shaunak noted that public listing allows for broader investor participation and a long-term mindset: “We didn’t want to be totally motivated by EBITDA,” he said in post-listing remarks.
This sentiment is beginning to reverberate across the industry. Julian Morse, Co-CEO of Cavendish (the advisory firm behind the MHA deal), observed a noticeable shift: more accounting firms are now “actively considering IPOs” as a serious alternative to PE-backed models.
PE Still Dominates in the US — For Now
In the United States, the PE footprint is already deep. Over half of mid-market accountancy firms now have some level of private equity backing. Recent deals such as Blackstone’s acquisition of Citrin Cooperman (from New Mountain Capital) and Hellman & Friedman’s expansion of Baker Tilly US show how PE groups are reshaping firm ownership structures and preparing for eventual public exits.
Yet even as PE firms dominate headlines, the idea of taking accounting firms public is regaining traction—particularly as firms seek long-term strategic autonomy and funding flexibility.
Not Everyone Is Convinced
Skeptics remain. Rob Donaldson, CEO of RSM UK, questioned whether IPOs are sustainable over the long haul, arguing that the traditional partnership model may ultimately prove more resilient. His firm has experience in absorbing troubled assets, having taken over the bankrupt RSM Tenon in 2013.
Additionally, regulatory scrutiny is rising. Concerns around commercial pressures affecting audit quality have prompted bodies like the Institute of Chartered Accountants of Scotland to call for a comprehensive review of ownership structures—especially those involving non-traditional investors.
What’s Next for the Sector?
As valuations rise and private equity begins to seek exit routes, IPOs are emerging as a viable and increasingly attractive alternative. Whether this trend becomes a broader shift or remains a niche path will depend on market conditions, investor appetite, and regulatory direction.
What’s certain is this: the traditional accounting firm is evolving. Whether it’s driven by balance sheet ambition, global M&A strategies, or a desire to remain independent of PE influence, capital markets are once again opening their doors to a profession long defined by quiet conservatism.
