Adrian JohnsonTLDR:
Key Points:
- Most MPs in accounting firms are skeptical or pessimistic about the private equity trend sweeping the profession.
- When asked about how to compete without interest in PE, firm leaders suggested focusing on culture, rather than compensation.
Key Points from the Article:
INSIDE Public Accounting conducted a pulse survey of 84 managing partners at accounting firms. The results showed that most managing partners are unsure about the impact of private equity on the profession, with some being skeptical or pessimistic.
When firm leaders without an interest in PE were asked about the best way to compete, 67% cited “all of the above,” while 21% said promoting culture, and 3% suggested using outsourcing and technology to reduce the workload on entry-level staff.
Remaining independent may offer firms a unique selling point, especially in an industry where PE investment is becoming more common. Some mid-tier firms in the UK are marketing themselves as “100% PE-free” to attract clients looking for a more personal touch.
There is concern about the impact of PE investment on firm culture and the long-term success of accounting firms. While PE firms offer financial windfalls, there are fears about layoffs and short-term financial goals overshadowing long-term success.
