Many accountancy firm owners do not see a credible path to keep their business going without external support so consolidators are making moves across the country leaving big questions about the future of the profession, says Peter Brassington, head of country at ETL Global UK
The UK accountancy profession is undergoing a period of profound structural change. Consolidation is no longer confined to the largest networks or headline-grabbing deals. It is now shaping strategy across the mid-market, where succession pressures and investment demands are colliding.
According to ICAEW’s 2025 research on mid-tier firms, acquisition-led growth is embedded in strategy for the majority of firms in that segment, while roughly a quarter are backed by private capital or actively considering it. A survey by law firm Kingsley Napley found that around 86% of senior leaders at top UK accountancy firms had been approached by private equity or external investors in the previous year. The scale and consistency of that activity point not to a passing trend, but to a structural shift in how firms think about their future.
Behind this surge in deal activity lies a more fundamental issue that many partners recognise all too well. Mergers and acquisitions (M&A) are happening not because founders and owner managers simply want a payday. They are happening because the classic succession model that defined partnerships for decades is under pressure, and many owners cannot see a credible path to continuity without external support.
The UK market remains highly fragmented with tens of thousands of small and mid-sized practices, each anchored in local client relationships and community reputation. That fragmentation presents both opportunity and challenge. Investors see a landscape ripe for roll-ups and platform building. Founding partners see the need to secure their legacy and safeguard continuity for clients and staff alike.
Succession planning in practice
For many owners, succession planning is no longer theoretical. The workforce is ageing and younger partners can lack either the capital or the appetite to buy into traditional leverage models. This demographic reality is as crucial to understanding consolidation as any headline about private equity.
The starting point in any conversation about consolidation is succession. A sustainable path forward begins with a shared view of how leadership, client relationships and firm culture will be preserved beyond the next decade.
When a firm decides to join ETL that transition is designed to be gradual. Everyday life for partners and clients remains familiar. The existing leadership remains at the centre of decision-making and the local brand stays in place if that is what partners want. We don’t operate with a fixed horizon for exiting ownership or impose arbitrary targets on revenue or profitability.
Independent in practice means that partners continue to run their firm, make strategic choices for their marketplace and build the relationships that clients value most. It also means having access to a broader set of resources over time without sacrificing control of day-to-day decisions.
Independence is not a slogan
Independence, however, cannot simply be a slogan. Partners need clarity on what actually changes once a deal completes. In the ETL model, day-to-day client service, pricing decisions and recruitment remain local.
What does change is the level of transparency and governance. Monthly management information is shared. Major strategic decisions such as new equity partners or significant capital commitments are discussed and agreed collectively among the firm’s owners. That balance matters as it provides oversight and support without removing entrepreneurial responsibility from the partners who built the firm in the first place.
The alternative, too often seen, is a model built around a short investment horizon where the consolidator’s priority is to roll up revenue into a larger entity that can be sold again. That model can work where founders simply want liquidity and are ready to step away from operational leadership, but it is not the answer for every firm or for every partner.
The pressure to scale technology and build advisory capacity is real. Firms increasingly need investment in data and automation to meet client expectations and to stay competitive against bigger networks with deeper pockets. That’s as true for mid-tier and regional firms as it is for national practices. But the route to scale need not come at the expense of the values that have defined these firms for decades.
Owners who are contemplating consolidation should challenge themselves with questions that go well beyond valuation multiples. For example:
- How will profits be distributed once the transaction completes?
- Will consideration be paid in cash or equity?
- Are there ongoing management fees or central charges?
- What decisions remain local and which require group approval?
These are not technicalities. They determine whether a firm remains commercially autonomous or becomes operationally constrained. The answers reveal far more about the long-term suitability of a deal than the headline valuation ever will.
Cultural fit also matters just as much as financial engineering. A consolidator that doesn’t appreciate how professional services are delivered will struggle to maintain client trust and retain talent. Conversely, an approach that respects independence in practice can unlock opportunities for growth while honouring the firm’s legacy.
Looking ahead, consolidation in the UK is unlikely to slow. What may change is its shape. As platforms mature, we are already seeing signs of consolidation among consolidators, with larger groups combining to create fewer but more complex organisations.
International capital, particularly from the US, is expected to remain active in the UK market. At the same time, regulatory scrutiny and integration complexity will increase as firms scale. For independent and mid-sized practices, the strategic question will not be whether consolidation continues, but which model offers stability, succession clarity and sustainable growth over the long term.
As consolidation accelerates alongside broader market activity in M&As, what will determine success for firms is less about whether they join a network and more about how they do so. Consolidation that simply shifts ownership without addressing the core commercial and cultural dynamics of a practice risks disruption. Consolidation that stabilises succession, preserves client continuity and aligns incentives across leadership can strengthen a firm’s platform for decades.
Done right, consolidation doesn’t mark the end of independence. It marks the beginning of a new phase in which firms can protect their heritage while building capability and resilience in a rapidly evolving market.
Author:
Peter Brassington FCCA ACA, head of country for ETL Global UK
