GROWTH STRATEGIES

Succession Takes the Driver’s Seat in Private Equity Boom

PE Specialists: Top row: Fligel, Pellen, Onefater. Bottom: Whitman, Wurtzbacher, O’Donnell

As Wall Street turns its eyes on mid-sized firms.

By CPA Trendlines

Succession is fast emerging as the defining force behind the private-equity-fueled M&A surge, transforming the accounting profession.

Partners in their late 50s, 60s, and 70s — many of whom never documented a transition plan — stare at retirement without successors. That urgency is pushing small and mid-sized CPA firms into the arms of private equity buyers and national consolidators at unprecedented rates.

GET MORE: Ask CPA Trendlines about the private equity boom

ALSO: Private Equity in Accounting | Private Equity Update: 53 Deals, $29 Billion | Deal or No Deal? The P.E. Dilemma for CPAs | Johnston: Private Equity, Shady Vendors, and Broken Software | Brannon Poe: PE Drives Prices–And Change | Behind Sorren’s Roll-Up: $170 Million, 1,000 Employees, 85 Partners | Kopelman: Culture & Capital Fuel Aprio’s Rise | Gear Up For Growth | Ira Rosenbloom: M&A Money’s Easy – Culture Fit’s Hard | Gary Shamis: The Private Equity Hazards for Young Partners | Alex Drost: Firms Get Scrappy Against PE-Backed Competitors | Tim Brackney: Don’t Blame Private Equity. Blame the Accountants |

“It’s no longer a question of whether you need a plan — it’s whether you have the right one,” says James S. Pellen, managing partner at Hertz Herson CPA LLP, speaking at a New York CPA society event. “Succession isn’t just about retiring; it’s about ensuring the firm survives and thrives after you’re gone.”