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OUTLOOK & ANALYSIS

Major Accounting Firm IPOs on the Way

Every year, the 2025 Rosenberg MAP Survey asks the industry’s top consultants to share their observations from CPA firms across the country: How do you think the next 12 months will unfold? Trends? Predictions? Other thoughts? Also, how would you assess the last 12 months? Trends? Observations? Struggles?

Artificial intelligence will affect talent at multiple levels.

By Allan Koltin
 The Rosenberg Survey

The second CPA firm flip (present private equity firm replaced by another private equity firm) of a Top 20 CPA firm will take place in early 2026.

The first “rollup/consolidator” flip (rollups with revenues between $100 and $500 million) will take place. Interestingly, when these rollups sell their equity stake, they won’t be acquired by “mothership” CPA firms but rather will go larger PE firm rollups and/or new PE firms desirous to enter the accounting profession.

MORE: The 2025 Rosenberg MAP Survey is available from CPA Trendlines here.

There will be up to three initial public offerings (IPOs) of significant accounting and consulting firms in 2026 and 2027. One might be a “tax only” CPA firm and the other two might be advisory and consulting firms.

By 2035, there will be six to eight CPA firms that are publicly traded (today CBIZ is the only publicly traded CPA firm).
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OUTLOOK & ANALYSIS

Next Five Years Are Critical for Accounting Firms

How deeply are you investing in your future? How are you treating the “three levels” of partners?

By Allan Koltin
The Rosenberg National Survey of CPA Firm Statistics

The next 12 months will start with a handful of firms breaking out of the pack and substantially raising starting salaries for new accountants in a way never seen before (see E&Y’s recent announcement on staff salaries). The domino effect will play out here because if you raise first-year salaries to second-year compensation levels, your second-year staff will need to be paid like third-year staff, and this move will go all the way up to senior managers and principals.

EDITOR’S NOTE: Every year, The Rosenberg National Survey of CPA Firm Statistics asks the profession’s top consultants two sets of questions:

    • How do you think the next 12 months will unfold? Trends? Predictions? Other thoughts?
    • How would you assess the last 12 months? Trends? Observations? Struggles?

MORE: Staffing Turnover’s Down, But Why? | What’s Your Firm Worth? Private Equity Wants to Know | The New Pipeline: Outsourcing and Offshoring | Is This the Last Year of Accounting’s Golden Age?
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The firms that are “uber” profitable will have an easier time funding this change than their peers. However, if you want to win the important war for talent (I mean attract, keep and grow future stars!), you will now need to pay up for them in a way we never envisioned (simple supply and demand economics in play).
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OUTLOOK & ANALYSIS

‘Great Shakeup’ in CPA Firms on the Way

 

Those that continue to make deep and sustainable investments will excel; “grinders” will face serious challenges to staying relevant.

By Allan Koltin
The Rosenberg MAP Survey

EDITOR’S NOTE: Every year, the Rosenberg MAP Survey asks the industry’s top consultants to share their observations from CPA firms across the country. How do you think the next 12 months will unfold? Also, how would you assess the last 12 months?

As I look to the next 12 months (July 1, 2023, to June 30, 2024) I see the “hourglass” half full! I know we have been in and out of a recession and flattening economy for the past 3.5 years, but I believe that in 2024 the economy will be better and stronger (I know I may be a minority opinion here!).

MORE: AI for Accounting Automation Will Be Significant | Private Equity Leading to Corporate-style CPA Firms | PE, Consolidations to Keep Impacting Accounting Profession | A 40-Hour Workweek Is Feasible | Five Ways Staff Shortages Are Changing Firms Forever | Soft Skills Are Front and Center | It’s Time for a New Business Model | Rosenberg MAP: Partner Incomes Surge 11.4%
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Whether I’m right or wrong may not matter though, as CPA firms continue to have strong performance in good and bad times. I realize that in a recession, the use of certain advisory and consulting services may be reduced or put on hold, but that aside, I think 2024 will be a strong year for firms as they continue to right-size and reimagine what their firm can be.
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OUTLOOK & ANALYSIS

Accounting Firms Face Up to Private Equity

It should be a record year for M&A.

By Allan Koltin
The Rosenberg MAP Survey: National Study of CPA Firm Statistics

If the last 12 months was the “calm before the storm,” the next 12 months will be the start of the storm! I think we will see some of the Big 4 entering into a “conscious uncoupling” and tax planning and consulting going “left” and assurance going “right.”

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I also think we will see some of the Big 4 firms truly coming together as one global firm. Today we have global brands but the firms operate as separate partnerships and don’t operate as one firm when it comes to partner compensation or decision making. I think this will change and ultimately a majority of the Top 10 firms will in fact operate as global businesses. I also think we will see a majority of the Top 20 CPA firms go the way of private equity (that’s not a typo!).
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FEATURED

How to Prosper in a Pandemic

Crisis brings needed change and new opportunity.

By Allan Koltin

The most significant changes our profession have seen so far are remote workplaces and, not surprisingly, remote client service. I think the dust has settled at this point and firms understand that these are not flavors of the month, but rather permanent changes to the landscape of our profession.

MORE: Pandemic Lesson: Innovate Faster | Remote Work Success Helps Solve Staffing Shortages | You Like Being Remote, But What About Your Clients? | COVID-19 Shakes Up M&A Activity | SURVEY: We Adapted to Remote Work … Now What?
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It’s fascinating that the COVID pandemic was responsible for speeding up what otherwise would have taken 5-10 years into 5-10 weeks.
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