Private equity investment is becoming increasingly prominent across professional services, including the accountancy sector. While external investment has long played a role in industries such as property, technology, and healthcare, its growing presence in accountancy represents a structural shift that deserves closer examination.
At Nordens, we regularly speak with business owners, directors, and high-net-worth individuals who rely on long-term advisory relationships. As private equity activity accelerates within the profession, it is important to understand how these ownership changes may influence decision making, service delivery, and professional judgement.
The traditional stewardship model in accountancy
Historically, accountancy firms were built around a partnership or stewardship-based model. Partners were not passive investors. They were directly accountable for the advice provided, the quality of client relationships, and the long-term reputation of the firm.
This structure aligned professional judgement with client outcomes. Decision making was shaped by continuity, experience, and accountability, rather than short-term financial performance.
While Nordens does not operate under a traditional partnership model, the underlying principles of stewardship remain central to how we advise our clients. Independence, professional judgement, and long-term thinking underpin every strategic decision we make.
How private equity investment changes incentives
Private equity investment introduces a different set of priorities.
Once a firm becomes investor-owned, success is primarily measured through financial metrics such as EBITDA, scalability, and exit multiples. These measures are essential within an investment framework, but they do not always align with the delivery of high-quality professional advice.
As Nordens Growth Director Mitch Hahn often observes, when an accountancy firm is treated as an asset class, cash flow becomes the primary product. Client experience, while still important, is no longer the central driver of decision making.
This shift has practical consequences. Growth strategies may prioritise rapid expansion, cost efficiency, and standardisation. Senior partners may exit earlier, while junior staff are incentivised through schemes that do not always provide genuine ownership or long-term alignment.
Over time, professional judgement can become constrained by margin expectations and investor return models.
What clients may experience following acquisition
Clients whose accountants have taken private equity investment may notice gradual changes, even if the firm’s branding and messaging remain familiar.
Common experiences include:
- Reduced continuity in client relationships, with more frequent changes in personnel
- Faster response times, but less depth, challenge, and contextual understanding
- Increased use of packaged or productised advisory services
- Inconsistencies arising from rapid acquisitions and integration of multiple systems and teams
Investment in technology can undoubtedly improve efficiency and accessibility. However, when financial targets are aggressive, pressure often falls on time, judgement, and people. In accountancy, these factors are critical to maintaining quality and trust.
Wider implications for the profession
Regulators are already monitoring these developments. Bodies such as the Financial Reporting Council and the Public Company Accounting Oversight Board have raised concerns about potential conflicts between professional judgement and investor expectations.
Beyond regulation, there is a longer-term risk to the profession itself. If traditional leadership pathways become less meaningful or less attainable, accountancy risks losing future leaders over the next five to ten years.
Experience, accountability, and professional judgement cannot be replaced by capital investment, automation, or artificial intelligence alone.
A measured view for clients and business owners
This is not an argument against growth or innovation. At Nordens, we have invested significantly in technology, systems, and modern advisory services to support our clients more effectively.
However, clients should be aware of how ownership structures influence behaviour.
If your accountant has taken private equity investment, it may be worth considering:
- How success and quality are measured within the firm
- Who ultimately owns and controls the client relationship
- Whether decisions are being made for long-term client outcomes or future exit objectives
Our view at Nordens
Independence is not a legacy concept. It is a governance choice.
At Nordens, we have chosen to remain independent despite repeated approaches from private equity investors. This allows us to provide advice that is driven by professional judgement, not external return targets.
Our clients value clarity, challenge, and long-term thinking. Independence enables us to deliver all three without compromise.
If you would like to discuss how ownership structures may affect your advisory relationship, or if you are reviewing your current professional support, our team would be happy to speak with you.
