The market is actively seeking to acquire accounting firms of all kinds.
In this episode, I discuss the reason behind this demand and, more importantly, what it means for you.
Listen below.
0:45 In 2021, private equity investors began making strategic investments in large accounting firms, starting with Eisner Amper.
1:15 Private equity is drawn to the accounting space because they see huge opportunities. They believe they can multiply their returns through strategic investments.
1:50 The truth is that most accounting firms are poorly managed and inefficient, which lowers their valuation.
2:14 Make no mistake—private equity isn’t investing to hold forever. Their goal is to scale and eventually flip the investment for a profit.
2:58 Most firms are inefficient, lack scalability, and have bottlenecks at the top. Private equity sees an opportunity to streamline and optimize them.
3:38 If you’re overworked and stuck, your business model isn’t optimized—meaning you’re leaving money on the table.
4:01 Use this influx of smart money in the industry as a cue to assess your firm and make the necessary improvements to your business model.
