Accounting firms revamp ownership structures for modern success and growth.

TLDR:

• Accounting firms are rethinking ownership structures due to capital needs and staffing shortages
• Firms are considering private-equity backing and public listing of business lines

The ownership structures of the nation’s largest accounting firms are being reconsidered as the industry faces growing capital needs and staffing shortages. Some companies are exploring securing backing from private-equity sources, while others are considering the public listing of a business line. Firms are feeling strained from funding extensive technology investments and struggling to recruit and retain workers during an accountant shortage.

Global accounting and consulting networks have been exploring various tactics to address these challenges. They are structured as separately owned entities in each country, with equity partners holding shares or units in the firm. Some firms are streamlining their organizational structure to boost efficiency and reduce costs.

Deloitte, for example, is trimming its global business lines and rebranding divisions to drive growth and create vibrant career paths for employees. The need to invest in technologies is only expected to increase, requiring new compensation and equity models to attract talent.