Why Consulting Firms Are Buying Accounting Practices

Episode 13 of Service Business Talks dives into a quiet but accelerating trend: the world's biggest consulting firms are acquiring small and mid-sized accounting practices. Lucas and Luna examine the specific case of Bain & Company buying a 50-person tax advisory firm in Dallas last month, and why Deloitte has acquired 14 regional accounting firms since 2022. They break down the strategy—these acquisitions aren't about adding audit capacity; they're about capturing the compliance-adjacent advisory work that generates predictable, recurring revenue. Lucas explains how the economics work: a typical accounting practice trades at 1.2 to 1.8 times revenue, while a consulting firm trades at 2.5 to 3.5 times. Buying accounting firms and converting their clients to higher-margin advisory services creates an instant arbitrage. Luna pushes back on integration risk, and they discuss why the Big Four face regulatory limits that smaller consulting firms don't. The episode closes with a question about whether this wave will pull in private equity firms looking for platform roll-ups. #BainAndCompany #Deloitte #AccountingFirms #ConsultingAcquisitions #TaxAdvisory #ProfessionalServices #MergersAndAcquisitions #RecurringRevenue #FinancialAdvisory #BigFour #PrivateEquity #RollUps #BusinessStrategy #ServiceBusinessTalks #FexingoBusiness #BusinessPodcast #Consulting #Accounting Keep every episode free: buymeacoffee.com/fexingo