Is Private Equity Right For Your Practice? It's Not Black and White

 Published June 2026

Private equity can be transformational for the right practice at the right time, but it's not a one-size-fits-all solution. 

For mid-sized accounting firms ($10-50 million revenue), PE investment offers compelling benefits: capital for acquisitions and technology investment, strategic guidance and operational expertise, talent acquisition and retention support, and exit strategies for owners constrained by succession options. These advantages explain why PE is attractive to growth-oriented practice owners who've reached the ceiling of what they can achieve alone.

But PE comes with trade-offs.

PE investors typically seek high returns within 5-7 years, which can create tension between long-term client relationships and shorter-term financial priorities around growth and profitability. Changes to ownership structure and governance may cause friction, particularly in firms accustomed to high individual autonomy. Due diligence will be comprehensive and earn-out terms potentially onerous with growth and other targets needing to be delivered.

Practice owners considering PE should carefully evaluate potential impacts on service quality, client relationships, and firm reputation. Cultural fit matters enormously, and DMY's experience across 100+ practice sales confirms that focusing on the buyer offering the strongest cultural fit typically leads to the most successful outcome, both operationally and commercially.

PE investment is just one path among several for accounting firms looking at their future growth and exit options for current owners.

Strategic sales or mergers with other accounting firms, or maintaining a path of independence both remain viable options. The right choice depends on an honest and thorough assessment of your goals, timeline, and what you're willing to trade.

Questions to ask yourself: 

• Is your growth aspiration incremental or exponential?
• Do you need new sources of growth capital or can you self-fund? 
• Are you confident of capturing the opportunities from AI to transform your practice?
• How much longer do you and your key leaders want to be actively involved? 
• What matters more: control, liquidity, or legacy?

PE investment in the Australian accounting sector is still at an early stage. Even globally,  the degree of success is yet to be fully revealed with the vast majority of PE investment across the sector having occurred since 2020. As outcomes become known, the pendulum will either swing toward or away from PE. Stay informed, consider all options, and choose the path that aligns with your specific objectives.

If PE is something you’re curious about for your practice, we invite you to get in touch for an informal conversation.