Baker Tilly and Moss Adams Merge in $7B Deal: A Pivotal Moment for Private Equity in Accounting

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 Genesis: Private Equity's Entry into Baker Tilly

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:​

• Baker Tilly US, LLP: Focused on audit services.​

• Baker Tilly Advisory Group, LP: Encompassing tax, advisory, and consulting services.​

  
  

This bifurcation allowed for PE investment in non-attest services while maintaining compliance with regulatory requirements for audit practices.​

The Merger: Expanding Horizons

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.​

Implications for the Accounting Industry

This merger signifies a broader trend of PE reshaping the accounting landscape:​

• Consolidation: PE investments are driving mergers among mid-sized firms to achieve national scale and competitiveness.​

• Capital Infusion: Access to PE funds enables firms to invest in technology, talent, and service diversification.​

• Structural Evolution: Traditional partnership models are adapting to accommodate external investments, balancing regulatory compliance with growth ambitions.​

  
  

As PE continues to influence the sector, firms must navigate the balance between maintaining professional integrity and embracing growth opportunities.​

Bizora's Role in Navigating Change

At Bizora, we assist accounting firms and professionals in adapting to industry shifts by offering:

• Strategic Planning: Guidance on mergers, acquisitions, and restructuring.​

• Compliance Support: Ensuring adherence to evolving regulatory standards.​

• Technology Integration: Implementing solutions to enhance efficiency and service delivery.​

  
  

Stay ahead in a transforming industry with Bizora's expertise.​

Explore how Bizora can support your firm's growth and compliance strategies at bizora.ai.