Accounting firm mergers: strategies, benefits, and key challenges

For a long time, growth in public accounting meant adding new team members, clients, or services. Now, it can also mean adding another firm entirely.

Private equity is pouring into the profession, partners are retiring in record numbers, and the pressure to modernize keeps building. Against that backdrop, mergers have become a practical way to grow and stay competitive. 

But it’s one thing to agree on terms; it’s another to bring two teams, systems, and client bases together. And if not handled properly, things can quickly get messy.

In our guide, we’ll cover what’s causing the surge in accounting firm mergers within the broader M&A landscape, what a successful merger achieves, and the challenges to be aware of — plus practical steps to ensure a smooth transition.

Key drivers behind accounting firm mergers

There’s no single reason firms decide to merge, but most of it comes down to stability and competitiveness.

One is the pressure to modernize. Clients now expect seamless digital experiences, and younger staff won’t stick around for outdated software. Tech is advancing at a pace that can be hard for firms to keep up with — especially smaller ones — so merging with a tech-forward firm can help firms make that leap without starting from zero.

Securing talent is another one. With the US accountant shortage and a wave of firm owners nearing retirement — the so-called “silver tsunami” — many firm owners are looking at succession options that can keep their teams and clients in good hands. Joining forces with another firm can solve that problem.

Private equity is also increasing M&A activity. A lot of investors see accounting firms as an attractive long-term bet, with at least 52 PE-related deals completed in 2025 so far — more than double the 24 recorded in 2024. With the extra capital, firms can modernize their systems, expand, and pull in more talent and clients faster.

And then, of course, there’s growth and staying competitive. CPA firm mergers make it easier to branch into new industries, open doors to new regions, and strengthen branding against competitors — factors that can also help increase resilience during economic downturns.

Benefits of accounting firm mergers

When a merger works, the upside can be substantial. Not only are you combining clients and systems, you’re expanding what your firm can do, who it can serve, and how it’s perceived in the market. 

More resources and expertise

This is one of the more immediate benefits of mergers and acquisitions. Two teams can mean more capacity and a deeper bench of skills, making it easier to take on more work or launch new service lines. 

For example, if one firm has strong client advisory services and the other specializes in tax, the merged team has a broader offering to pitch to clients.

Streamlined processes and reduced overhead

Combining systems can cut costs and eliminate redundancies. When done right, a shared infrastructure can result in a tighter tech stack, cleaner workflows, and better visibility and efficiency.

Strengthened brand reputation

For both firms, merging can strengthen brand reputation and presence. A larger firm with more talent and reach stands a better chance of attracting higher-value clients and job candidates — both of which also feed future growth.

Improved client service

A merger can improve both firms’ service. With more coverage, combined expertise, and a unified client experience, clients can receive faster turnarounds and better hands-on support, ultimately feeling more confident in the accounting firm.

Challenges and risks of mergers

Merging two firms can be valuable for everyone involved, but it usually doesn’t come without bumps in the road. In reality, accounting firm mergers can get complicated and emotional, particularly when issues are not addressed early on. 

The firms that navigate M&A challenges well do so by planning far in advance, not just for the deal, but for the staff, systems, and clients who have to live with it after.

Culture and team misalignment

Every firm has its own rhythm: how partners lead, how teams communicate, how work gets done. If two sets of habits and expectations collide, tension can build fast, leading to low morale or even turnover.

Client churn

Clients notice change before you think they will. And if they’re kept in the dark about what’s happening, or if service feels disrupted, trust can quickly go south and cause a spike in client churn.

Clashing systems and processes

If one firm runs on cloud-based tools, such as automated workflows and modern client portals, while the other still relies on local servers and paper, merging processes can get messy. 

Teams might struggle to collaborate, and clients might experience gaps or delays — both of which can quickly harm business.

Compliance and legal risks

With accounting firms operating under tight regulations, any M&A plan requires a careful eye on compliance — as even small oversights can turn into big headaches later. 

If the firms operate in different states or industries, more licensing or reporting requirements can also come into play. Overall, it pays to sort these out early to avoid regulatory trouble down the line.

Steps to plan and execute a successful merger

A successful accounting firm merger doesn’t happen by luck; it happens through careful prep and transparent communication. Every deal is different, of course, but the firms that make it look easy usually follow the same path.

Done well, merging your firm can be one of the most rewarding decisions you ever make. Just remember that success isn’t closing the deal; it’s measured after by how well both firms operate as one.

1. Start with a clear-eyed assessment

Before any serious talks begin, both firms need a clear picture of where they stand — financially, operationally, and culturally.

Too many mergers start with the promise of “synergy” without understanding what that’ll look like in practice. Knowing what you each bring to the table — and where any gaps are — helps set honest and realistic expectations from day one.

2. Set goals and shared expectations

Growth for growth’s sake rarely works, so get specific about what you want to achieve and what success looks like to you, whether that’s succession planning, geographic expansion, or new service lines.

To save a lot of frustration later on, it’s also important to agree on any non-negotiables — such as leadership roles, culture, or technology standards — long before paperwork starts.

3. Do your due diligence — and focus on clients

Due diligence isn’t just about the numbers; it’s also about reviewing your organizational structure, service models, processes, tech stack, and staff capabilities.

CPA firm mergers and acquisitions are also more likely to succeed when both firms take the time to evaluate their client relationships. This can even prevent nasty surprises afterward, such as different ideas of what client value actually means.

4. Structure the deal carefully

This part can get technical fast, so it’s worth seeking help from advisors who specialize in firm transitions. They can help you evaluate ownership structure, compensation agreements, tax implications, and any liabilities, all before the deal is finalized.

A rock-solid legal and financial deal sets the tone for trust between partners. It also protects both sides long-term.

5. Build a thoughtful communication plan

Once a mergers and acquisitions accounting firm deal is in motion, communication becomes everything. Internally, teams want to know what’s changing, when, and why. Externally, clients want reassurance they’ll receive better service, not disruption. 

It’s worth designating spokespeople, coming together on messaging, and keeping communication consistent. Avoid silence or mixed messages as much as possible, as these will create room for doubt.

Leaders must be intentional about setting the tone early and creating space for honest dialogue, making sure both sides feel heard before changes roll out.

6. Create an integration roadmap

A successful integration requires a phased plan — and this is where the real work begins and where most mergers stumble. 

The key is to make sure it’s well thought out, covering timelines, ownership, systems alignment, and client needs. Throughout the process, provide training, take feedback into account, and celebrate the wins (even the small ones) to keep morale high. 

Integration takes time, but planning for it upfront prevents confusion, protects everyone’s interests, and keeps service stable.

Real-world examples and lessons learned

For a closer look at what can really make or break an accounting firm merger, here are two examples — one successful, and another that fell apart — with key takeaways on what leaders need to get right from the outset.

Baker Tilly and Moss Adams

In mid-2025, Baker Tilly and Moss Adams merged to become the sixth-largest CPA firm in the US.

The firms communicated clear leadership plans from the start — Baker Tilly’s CEO would lead through 2025, followed by Moss Adams’ CEO in 2026. They split audit and advisory services into separate legal entities, and both entered the deal backed by private equity with aligned incentives and growth capital.

Key takeaways:

• Clarity around leadership builds trust and prevents power struggles later on
• A well-defined legal and operational structure helps reduce any regulatory confusion
• Open communication with staff and clients sets the tone for a confident and organized transition

EY and KPMG

In late-1997, EY and KPMG, two of the world’s largest accounting firms, announced plans to merge into a global powerhouse. 

Within months, however, the deal between EY and KPMG fell through due to regulatory concerns, client opposition, and disagreements about structure and control, showing how even well-intentioned mergers can fail when stakeholders aren’t on the same page.

Key takeaways:

• Alignment on paper can fall apart later without full agreement on structure, control, and vision
• Client buy-in is best earned early, not considered as an afterthought
• Internal resistance can sink even the most attractive M&A plans and opportunities

Make your merger seamless with TaxDome

Change isn’t slowing down in accounting. Automation, AI, and private equity are driving up M&A activity — and with remote work becoming the norm, it’s not unusual anymore to see firms merging across state lines or even countries.

Whether you’re planning to merge or just want to build a stronger foundation for your firm, the best time to improve your systems is now.

TaxDome is the number one accounting practice management software worldwide. Our secure, end-to-end platform helps 10,000+ firms like yours manage all their operations — workflows, documents, e-signatures, billing, communication, and more — in one place.

By automating your workflows, centralizing your tools, and unifying your client experience, we help your firm stay organized, efficient, and ready for whatever comes next — putting you in a healthier position for the future while leveling up how you serve clients today.