The State of Accounting Firm M&A: Insights from Allan Koltin and Timothy McHugh
The first major private equity transaction in accounting took place about five years ago, and during this period the industry has undergone a massive transformation. In this next installment of his Accounting Firm Insider series, Russell Shapiro speaks with Allan Koltin, legendary accounting and professional service firm consultant, and Timothy McHugh, partner and managing director at William Blair, about how transactions happening today have changed, how rollover equity has and will continue to appreciate going forward, and the key trends (including AI) that will shape the industry — and the deals — in the years to come.
Click on the links below to view key moments from the conversation, or watch the full interview here.
- Is M&A activity in the accounting firm market continuing at the same level as in the past?
- What is happening with valuations?
- What are the characteristics of firms seeing valuations at the top, middle, and lower segments of the market?
- What is the best approach to determining what the scrape should be in a deal?
- How has rollover equity from the first round of accounting M&A deals faired? How are newer deals expected to appreciate?
- What is the current state of the debt market being used to fund new platforms?
- How are the sellers evaluating potential financial partners?
- What are the key economic trends in the industry?
- How have the assumptions PE firms use for underwriting deals changed?
- What is the current thinking about whether AI will increase or shrink margins in the industry?
- Is there an IPO market for the next round of flips?
- Will PE investment in the legal industry be as pervasive as it has been in the accounting industry?
Listen to this interview on Spotify.
In your professional services firm considering outside investment? Reach out to Russell Shapiro or another member of LP’s Corporate Group.