Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
A quarter of mid-tier accountancy firms are considering private equity investment, and close to half are planning new ESG service lines, according to a new survey from the Institute for Chartered Accountants in England and Wales (ICAEW).
The research found that twice as many firms had an interest in pursuing PE investment than in 2024, and just under half of firms were planning to start offering environmental, social, and governance (ESG) related services.
Last year only 10% saw ESG as a growth opportunity. It also confirmed that access to skills remains a challenge, with close to half of surveyed firms saying it is a barrier to growth.
Close to two-thirds of respondents (64%) identified PE investment as the top macro trend shaping the profession, with 25% of firms expressing an interest in pursuing such investment.
In total one-quarter said they had already secured PE funds, with 3% receiving such investment in the last 12 months. Of the independently owned firms surveyed PE investment was not appealing to 74%, up from 64% in 2024.
Run for the second year, ICAEW’s research surveyed 36 UK mid-tier accountancy firms on trends shaping the sector and their organisation’s plans for the future.
ICAEW CEO Allan Vallance said: “These new insights reflect both a continuation of the trends and pressures reported in last year’s research, while also revealing new areas of focus driven by emerging challenges and opportunities.
“Notably, there is a growing emphasis on ESG as an emerging service line. Compared to the previous year’s report, more firms are actively investing in this area, recognising its potential for future growth.”
He added: “The research also identifies a significant challenge in sourcing and developing the specialised skills required to meet evolving client demands. Despite these hurdles, firms continue to demonstrate resilience and adaptability, maintaining a trajectory of ambition and sustained growth.
“Our firms have told us that private equity interest in the mid-tier accountancy sector remains high, and while we expect this trend to continue and become a major force shaping the future of the profession, it is important to recognise that private equity is not a one-size-fits-all solution to growth. For every firm that identifies opportunities to broaden its reach or invest in tech, another will recognise it as a threat to culture and talent retention.”
