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The influx of Private Equity (PE) investment into the accountancy sector has dominated industry discussions in North America, with high-profile deals like Blackstone’s acquisition of US accountancy firm Citrin Cooperman creating a buzz and is gaining traction in Europe.

The focus on PE’s role in firm valuations has led many to speculate it will fundamentally reshape the traditional partnership model of accounting firms. To explore how business models are truly evolving, PrimeGlobal conducted workshops with managing partners and firm leaders across key global regions. The goal was to identify the real drivers of change and assess where PE fits into the transformation agenda.

Our findings reveal both global consistencies and regional nuances. However, one truth stands out. The most critical forces reshaping accounting firms worldwide are Artificial Intelligence (AI), talent and leadership development, and agile decision-making, but interestingly not PE.

While external funding, including PE investment, can serve as an enabler, it’s not a strategy in itself. The real challenge for firms is ensuring they’re agile for transformation and PE is simply one potential tool to support it.

North America: Evolution Under Financial Pressure

With over 60 PrimeGlobal member firms in North America we found a measured but significant shift in governance and business model adaptation. Our research shows just 6% of firms surveyed have adopted an ‘alternative practice’ model.

Only 5% have secured external funding so far, despite ongoing interest, while PE investment is concentrated in larger firms, either through minority or majority stakes.

The most significant change in North American firms is governance structure. Interestingly, a significant 32% of firms now operate with a corporate governance model such as with a CEO, C-suite, and service line leaders, enhancing agility. Nonetheless, a majority (50%) are considering business model transformation, with firm leaders emphasizing the importance of adaptability.

The significant pressures on firms in North America include deferred compensation for retired partners, which strains cash flow, making PE attractive as a liquidity solution. However, firms with strong leadership succession planning have more strategic options beyond external capital.

Our research highlights that instead of PE investment being the main quandary for firm leaders, the ability to manage change is the defining factor for long-term success. The question isn't just whether to take on PE, but whether firms have a clear strategy for transformation.

“Firms need clear strategies to develop future leaders, leveraging AI for efficiency and transformation. While PE offers capital, the focus should remain on key drivers of change, not just external funding options,” one Managing Partner told PrimeGlobal.

EMEA: Shifting Governance and AI-Led Transformation

Firms in Europe, the Middle East and Asia (EMEA) are also evolving their decision-making structures, with a strong push towards more agile governance. A substantial 48% of firms surveyed have adopted a corporate decision-making model, reducing the influence of traditional equity partners in operations. Only 10% have accepted external capital, showing limited appetite for PE. Meanwhile, 30% rely on a small partner executive committee for core decision-making, while another 30% empower a CEO-equivalent to lead.

The major trend shaping EMEA firms is AI, which is viewed as the biggest disruptor with 70% of firm leaders saying it would significantly affect their business model, automating compliance roles and shifting focus to advisory services.

Succession planning is also a major concern with 60% prioritising leadership pipeline development. The ability to attract talented professionals is changing with 68% of firm leaders saying that work-life balance was essential to attracting the next generation.

Despite the trend for PE investment, well over a third of EMEA firms (37%) said firm ownership remained a key incentive for young professionals, while 32% of leaders said firms demonstrating positive societal impact would have a talent advantage.

“To learn from each other, we need engaged member firms who are curious and willing to share practices,” an EMEA Managing partner said.

Our research further highlights how the ability to empower professionals and create flexible career opportunities is a critical differentiator in talent recruitment. AI will redefine service offerings, but succession planning must keep pace.

Latin America: Fastest changing market, but no PE Appetite

Firms in Latin America present a wholly different picture to those in the rest of the world’s regions. LA firms are at an earlier stage of moving from partner-led models to corporate-style governance. The majority (54%) are still structured as partnerships with a managing partner at the helm. None have taken on external ownership.

Despite this, a substantial majority (76%) of firms said they had changed their models in recent years, reflecting a strong appetite for modernisation, while 85% of firm leaders said they expected further business model changes. This marks the highest percentage among all regions.

Beside governance changes, trends driving change in LA firms include AI, which stands out as the top factor shaping business model evolution. A massive 85% of leaders ranked it highest. New services and succession planning are also major priorities.

“AI will be truly transformational for our profession globally. The risk of being left behind is very high. We need to share practices to survive. We need to learn from real emerging practice,” a LA Managing Partner told PrimeGlobal.

Unlike EMEA, where work-life balance is attractive, 43% of LA leaders said high financial rewards were the best tool for attracting talent.

Driven by a desire to stay competitive, Latin America firms are transforming rapidly. While AI is a top priority, firms also recognise that financial incentives play a crucial role in attracting and retaining top talent.

Asia-Pacific: Succession and AI Leading the Charge

Asia Pacific firms are gradually moving away from partner-led models, and while a significant 41% of firms surveyed now have a managing partner leading the firm,18% have adopted a corporate governance model (CEO, C-suite), while 12% have secured external capital, the highest percentage outside North America.

The major trends shaping firms range from succession planning, which is a top concern, and AI to work-life balance and financial incentives. A substantial 71% said succession planning would have the biggest impact on their business model, while 65% found that short-term financial incentives remained key motivators for young professionals, which is similar to firms in Latin America.

A significant majority (65%) however rated AI as a tool that would transform the profession, acknowledging that AI was expected to reduce staffing needs, but firm leaders also saw it as a tool to make work more engaging and strategic. Work-life balance was the leading factor in attracting the top talent (71%), positioning it alongside trends in EMEA.

The profession is undergoing a fundamental shift in Asia Pacific, balancing AI-driven efficiencies with the need to build a strong leadership pipeline. Firms must however focus on empowering young professionals early to remain competitive.

“There is a war for talent. We’re competing with technology companies and investment banks to attract talented young people. We need to use AI to make roles more interesting and empower people early. We need to reinvent the image of our profession, so it is seen as driving technology change,” a Managing Partner said.

The Way Forward: Rethinking Business Model Transformation

When asked how PrimeGlobal can best support firms, leaders across all regions shared a common request including facilitating knowledge-sharing around business model evolution. Other ways we can help members is by creating trusted spaces for firm leaders to discuss challenges and strategies as well as providing insights into AI, leadership development, and agile decision-making.

The consistent global trends shaping firms AI, talent attraction, leadership development, and governance agility must remain at the forefront. PE is not the primary force of transformation, but rather an optional enabler for firms that already have a clear strategy in place.

We’re committed to fostering open and honest conversations about business model evolution. While discussions on PE have historically been seen as sensitive, we believe it’s time to reposition the debate. PE should be viewed as one tool among many, not the defining feature of a firm’s future. The real focus must be on equipping firms with the agility, leadership, and innovation needed to thrive in a rapidly changing market.

This data has enabled us to provide a unique perspective of the impact of global trends on firm business models in different countries highlighting what is common and what is unique. We’ll use it to provide practical guidance to firms, and also to predict likely changes to firm business models in years to come, and the impact this will have on the future of the profession.