In a landmark move, Baker Tilly and Moss Adams have announced a $7 billion merger, poised to create the sixth-largest CPA advisory firm in the United States. This strategic alliance, set to finalize in June 2025, underscores the transformative impact of private equity (PE) in the accounting sector, particularly in the middle market.
The merger's foundation was laid in early 2024 when Baker Tilly secured a significant investment from private equity firms Hellman & Friedman (H&F) and Valeas Capital Partners.
This infusion of capital marked the largest PE investment in a U.S. CPA firm to date, enabling Baker Tilly to accelerate growth through talent acquisition, technological advancements, and strategic mergers and acquisitions.
The investment also prompted a structural reorganization, dividing Baker Tilly into two entities:
This bifurcation allowed for PE investment in non-attest services while maintaining compliance with regulatory requirements for audit practices.
The union with Moss Adams, a firm with a strong presence on the West Coast and in the central U.S., complements Baker Tilly's dominance in the East and Midwest. The combined entity, operating under the Baker Tilly name, will boast over $3 billion in annual revenue and a workforce exceeding 11,000 professionals.
Leadership will see a seamless transition, with Baker Tilly CEO Jeff Ferro at the helm until his retirement in January 2026, after which Moss Adams CEO Eric Miles will assume the role.
This merger signifies a broader trend of PE reshaping the accounting landscape:
As PE continues to influence the sector, firms must navigate the balance between maintaining professional integrity and embracing growth opportunities.
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