The role of private equity in UK audit and accountancy firms: driving innovation and growth
In recent years, the UK audit and accountancy sector has undergone an exciting transformation. Private equity investment, once uncommon in professional services, is now reshaping the landscape of audit firms and accountancy practices across England and Wales. Traditionally dominated by partner-led business models, the accountancy profession is now seeing a wave of external capital, prompting a re-evaluation of corporate governance, auditor independence, and long-term strategic priorities.
This article explores how private equity is influencing UK audit firms, the implications for smaller firms and stakeholders, and what the phasing out of equity partners means for those seeking a good payout.
Why private equity is targeting audit and accountancy firms
Firms like Smith & Williamson (formerly Evelyn Partners) and Grant Thornton are setting the benchmark for successful private equity transitions. Smith & Williamson has demonstrated how a firm can retain its professional ethos while embracing corporate governance and strategic investment. Their partnership with Apax has enabled them to scale operations, enhance client services, and invest in future-ready technologies, all while maintaining a strong commitment to quality and integrity.
Grant Thornton, a long-standing leader in the UK accountancy landscape, continues to evolve with agility and foresight. Their approach to private equity engagement reflects a deep understanding of market dynamics and a proactive stance on innovation. GT’s ability to balance growth with governance has made them a trusted partner for clients and a model for firms navigating similar transitions.
These firms exemplify how private equity can be harnessed not just for financial gain, but to build enduring value and strengthen the profession.
Leading the way: Smith & Williamson and Grant Thornton
Firms like Smith & Williamson (formerly Evelyn Partners) and Grant Thornton are setting the benchmark for successful private equity transitions. Smith & Williamson has demonstrated how a firm can retain its professional ethos while embracing corporate governance and strategic investment. Their partnership with Apax has enabled them to scale operations, enhance client services, and invest in future-ready technologies, all while maintaining a strong commitment to quality and integrity.
Grant Thornton, a long-standing leader in the UK accountancy landscape, continues to evolve with agility and foresight. Their approach to private equity engagement reflects a deep understanding of market dynamics and a proactive stance on innovation. GT’s ability to balance growth with governance has made them a trusted partner for clients and a model for firms navigating similar transitions.
These firms exemplify how private equity can be harnessed not just for financial gain, but to build enduring value and strengthen the profession.
Opportunity for the accountancy sector
Private equity investment brings clear benefits. It enables firms to invest in automation, artificial intelligence, and data analytics, enhancing efficiency and expanding advisory services. These technological advancements are redefining accounting practices, and the skills required within the profession.
Consolidation is another major trend. PE firms often pursue a buy-and-build strategy, acquiring smaller firms to create larger, more competitive providers. This not only improves operational efficiency but also diversifies service offerings across financial services, real estate, and healthcare.
Equity partners: planning for a strategic exit
For equity partners considering their next move, private equity offers a unique opportunity to realise the value of their stake. Structured buyouts, often linked to performance and growth metrics, can deliver attractive returns, especially in firms with strong fundamentals and clear strategic direction.
Timing and negotiation are crucial. Partners should seek independent advice and align with firms that prioritise transparency, long-term planning, and stakeholder engagement. Learning from successful transitions, such as those at Smith & Williamson and Grant Thornton, can provide valuable insights into best practices and payout structures.
Stakeholder impact
Clients stand to benefit from enhanced service delivery, broader expertise, and more innovative solutions. Employees gain access to competitive compensation, career development, and exposure to new technologies and business models.
While cultural shifts may bring uncertainty, they also create space for growth, learning, and leadership. Firms that invest in their people and maintain strong values will be well-positioned to thrive in this new landscape.
Looking ahead
The future of private equity in UK audit and accountancy firms is bright. While some firms embrace the change, others remain cautious, wary of losing their identity or compromising professional standards. What is clear is that the audit profession is evolving, driven by external investment, technological innovation, and changing client expectations.
For equity partners considering their next move, the key is to align with firms that value transparency, strategic planning, and long-term sustainability. With the right approach, private equity can offer not just a good payout, but a meaningful legacy in a profession undergoing profound change.
How Brewer Morris can help you find your next audit opportunity in a PE-backed firm
We work with a variety of PE-backed audit firms and have jobs available at all levels. If you are looking to embark on an exciting new opportunity, check out our latest audit jobs.
Alternatively, if you are looking to hire an auditor for your firm, submit a brief and a member of our team will be in touch.
