Navigating the Cycles of Private Equity in Accounting

Private equity in accounting could boost firm value, but at what personal cost?

Accounting Influencers
with Rob Brown

In a deep dive into private equity’s involvement in accounting, Gary Shamis, CEO of Winding River Consulting, describes how investment firms see value in the sector's steady cash flows and resilient recession history. “It’s not that accounting is recession-proof,” Shamis states, “but its inherent stability during economic downturns is highly appealing to investors.” He adds that accounting firms with strong advisory practices, which offer scalable revenue opportunities, are of particular interest to private equity.

The conversation takes a sobering turn as Shamis highlights the ongoing talent shortage within the profession. With fewer accountants entering the field and a growing demand for regulatory and advisory services, Shamis emphasizes that private equity deals won’t solve the critical issue of human capital shortage. “There’s just not enough talent in the pipeline,” he cautions.