Private Equity Firms Are Acquiring Professional Services Firms

Since 2021, private equity (PE) firms have shown an increasing interest in acquiring accountancies. The audit function of accountancy firms cannot be owned by anyone who is not designated a CA. This presents some challenges for PE interests, but it is not insurmountable. In accountancies, PE firms are focusing on advisory, tax, and consulting. Organizations who have taken on PE investments are separating themselves into two: the audit/attest section and the advisory/consult groups. Such was the case with Grant Thornton who became Grant Thornton Advisors LLC (Advisory) and Grant Thornton LLP (Audit).