The evolving landscape of M&A in the accounting sector

5min Read

The growing influence of private equity (PE) and the rise in mergers and acquisitions are reshaping the accounting sector, presenting both opportunities and challenges. These shifts are prompting firms of all sizes to rethink their strategies,streamline operations and adapt to new dynamics.

But with so much change, how can accounting firms navigate this evolving landscape while preserving their culture and keeping clients at the heart of what they do?

In our recent roundtable discussion with industry leaders Russell Frayne, Sarah Gardener and Paul Finnegan, we uncovered key strategies for navigating growth, managing change, and achieving seamless integration. Here’s what you need to know.

Meet the panel

Private equity: beyond capital

Private equity is often seen as a source of funding, but it can offer much more. Beyond providing capital, it brings valuable expertise and strategic guidance, helping firms to accelerate growth, refine processes, and deliver actionable insights that drive business performance.

With the involvement of PE representatives at board meetings, firms may be able to improve operations and scale up much more quickly than they would have without it.

To support this kind of rapid expansion, firms need a strong infrastructure, especially in HR, IT, and change management. Without these systems in place, growth can quickly become unmanageable or even impossible.

“It’s not just the money they’re bringing, they’re bringing expertise as well.” – Paul Finnegan

Culture and communication: keys to successful integration

When firms merge, one of the biggest hurdles is blending different company cultures. Each firm has its own history, values, and ways of working, and integrating those can be difficult. A unified company culture is essential for smooth integration and long-term success.

Understanding and defining culture early in the process is critical. And communication is key to aligning teams around a common vision. Being clear about changes -whether it’s new systems, processes, or leadership – can make all the difference in how employees respond.

The best approach? Start early and communicate often. Proactive communication helps reduce anxiety, builds trust, and sets the tone for a positive transition.

“The biggest impact in any acquisition is always the people. Yes, there are processes and systems, but it’s your people who have to use them.” – Russell Frayne

Keeping clients at the heart of M&A

When firms go through M&A, it’s easy to become focused on internal changes. But the client experience should always remain a priority. After all, it’s client satisfaction that drives long-term success – and often, it’s the recurring revenue from satisfied clients that makes the deal attractive to private equity in the first place.

The message from our panel was clear: clients need to feel reassured throughout the transition. Even though internal processes are changing, the quality of service and the relationship with the client must remain consistent.

Keeping clients informed and involved during M&A transitions can help firms build loyalty and prevent client attrition.

“Client retention is key—if all the clients leave, no matter how efficient or technologically savvy your firm is, you’ll have very empty conversations at the end of the year.” – Russell Frayne

Career growth: A hidden benefit

One often-overlooked benefit of M&A and private equity involvement is the potential for career growth within the firm. As firms expand, new roles and opportunities arise, opening up exciting career pathways for employees.

During our discussion, the panel emphasised that career development doesn’t just help with talent retention, it helps firms build new capabilities. As firms grow, junior staff can take on more responsibility, while senior leaders can focus on more strategic aspects of the business, such as client engagement and mentorship.

As firms evolve, ensuring that there are clear opportunities for career progression is vital. This not only helps employees feel invested in the firm’s success but also allows the firm to grow and enrich itself from within.

“We’re seeing a rise in new roles like project managers, business analysts, and data analysts. A lot of people pivot from within the business, which fosters career development.” – Russell Frayne

Key takeaways

From our discussion, a few key lessons were identified:

  • Infrastructure is crucial – Without a solid support system, even the best strategic plans can falter. Firms need to make sure their back-office functions are ready for growth.
  • Clear communication is essential – Whether it’s about system changes or new roles, transparency early on helps ease transitions and keep employees engaged.
  • People matter most – The true heart of any M&A journey is the people involved – employees and clients alike. How you manage these relationships will ultimately determine your success.

Embracing change with confidence

As M&A and private equity continue to reshape the accounting sector, firms need to strike the right balance between scaling operations, maintaining their unique culture, and keeping clients at the heart of their strategy.

The secret to success? Focus on your people, keep the lines of communication open, and ensure you have the right infrastructure in place.

By doing this, firms can not only survive the challenges of M&A- they can turn these challenges into lasting opportunities for growth.

Missed the webinar? You can watch it here on-demand.

Speak to our team and find out how we can help you innovate and thrive in 2025.

More Posts

New whitepaper from Silverfin AI - beyond the hype

Beyond the hype: the real benefits of AI for your accountancy firm

The team at Silverfin developed this whitepaper to bring together industry analysis of the key AI issues occupying accountants’ minds today. Using explanations of the ways ...
Read More

The future of AI in accounting: insights from Chris Downing at Sage

Unlock insights from Chris Downing on the future of AI in accounting, and the practical steps you can take to leverage its full potential
Read More

Why employee experience is the next big focus for accounting firms

Discover how UK accounting firms are boosting job satisfaction by reducing long hours and stress with transformative technology.
Read More
UK Accounting Trends 2025

5 big challenges facing UK accountants in the next 12 months

In this Elite Business exclusive, Silverfin's Phil Hobden explores the biggest challenges set to face the accounting sector in 2025.
Read More
silverfin

Using cloud accounts production software to enhance efficiency in your firm

Learn how to simplify accounting workflows with Cloud Accounts Production Software. Improve accuracy, automate tasks, streamline compliance.
Read More
accounting compliance - Silverfin UK

How accounting compliance software helps reduce risk

UK accounting companies are subject to increasing pressure to meet growing regulatory expectations from bodies like HMRC and Companies House. As regulations continue to evolve ...
Read More

Everything you need to know about cloud-based accounting software for UK firms

Learn how to boost efficiency with cloud-based accounting software for UK firms. Automate tasks, improve accuracy, and streamline compliance processes.
Read More

IRIS & Silverfin: Key Differences You Need to Know

Bid farewell to the drudgery of manual data and spreadsheet management and say hello to intelligent digital templates. Learn more today.
Read More
silverfin

Using cloud accounts production software to enhance efficiency in your firm

Learn how to simplify accounting workflows with Cloud Accounts Production Software. Improve accuracy, automate tasks, streamline compliance.
Read More

Silverfin’s connected Working Papers solution sees 94% annual growth as companies shift from Excel to AI

In Silverfin's latest guide, learn how to move away from Excel to software that improves efficiency and delivers productivity gains using AI.
Read More
Business Team Meeting Discussion Working Concept

Cloud collaboration tools for accountants

Effortless collaboration has become an essential tool for accounting companies. Seamless communication and shared access to data and documentation help teams effectively manage deadlines, prepare ...
Read More

Unlocking efficiency: the hidden benefits of standardised workflows

Discover how leading UK firms are unlocking efficiency in their accounting firms by standardising workflows.
Read More

Let’s Chat

Scroll to Top