PEI reshaping UK accountancy industry with focus on growth, innovation, and M&A

Private equity investment (PEI) is significantly impacting the UK accountancy profession, with 86% of firms ranking it among the top three trends reshaping the industry, driven by a desire for growth and innovative expansion strategies. M&A, talent access, and tech investment are key benefits, with a quarter of mid-tier firms having secured PEI and 25% likely to pursue it in the next three years.

While some firms embrace PEI for growth, others resist due to concerns about culture, talent retention, and succession planning. Despite receiving approaches from private equity houses, three-quarters of independently owned companies do not find PEI attractive. Fee growth, new clients, and increased client spending are reported, with skills and regulation identified as main barriers to growth.

Nearly half of mid-tier firms made acquisitions in the past year, with 67% planning more. Expanding the client base is a primary reason for considering mergers or acquisitions, according to 97% of firms. ICAEW highlights the importance of mid-tier firms in supporting economic growth and acknowledges the varied impact of private equity on the profession.

Read more at Yahoo Finance: PEI to reshape UK accountancy, ICAEW finds