Ready the Stack Play: Tech Arbitrage Under Private Equity

Private equity isn’t just buying CPA firms. It’s rebuilding them—starting with the tech stack.

 By CPA Trendlines Research

From ERP systems to AI-powered audit tools, PE-backed accounting platforms are undergoing technology overhauls at a pace never before seen in the profession. The result is a widening gap between capitalized firms and traditional partnerships still running legacy software.

In CPA Trendlines’ benchmark dataset, independent firms average about 4% of revenue on technology, versus about 10% at PE-backed platforms.

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The logic is clear: better technology means faster service delivery, lower costs, and more data-driven decisions. For private equity investors, that translates directly into EBITDA expansion—and higher exit multiples.