US accounting industry split on taking private equity cash
Several of America’s largest accounting firms have explored the possibility of taking private equity cash in recent months, as money from buyout funds adds fuel to a mergers and acquisitions boom across the industry.
BDO and Grant Thornton are among those to have considered a deal with private equity, and while neither immediately decided to pursue an investment, bankers and executives expect a number of smaller firms will do so, and use the cash to swoop on rivals.
Private equity has been drawn to the fragmented US accounting industry for its relatively stable cash flows and consolidation prospects, but selling some or all of the business to the so-called barbarians at the gate has split a sector dominated by traditional partnerships.
This story originally appeared on: Financial Times - Author:Stephen Foley
