Practice
Why consolidation reshapes careers
Private equity-backed consolidators are redrawing the map of the UK’s accountancy profession – and reshaping the career paths within it. For AAT members at every level, the trend brings both opportunities and uncertainties, Neil Johnson reports
Images: Getty / iStock
Consolidation isn’t new, but its pace and scale is striking. Keith Underwood, managing director of advisory firm Foulger Underwood, estimates that around 25 consolidators are now active in the UK and most are backed by private equity (with no fewer than 35 investment houses estimated to be active).
The attraction for investors is clear. Practices generate recurring revenue, client relationships are sticky and efficiency levers are obvious. But the effect is relentless. “Some managing partners are getting multiple approaches a week,” says Underwood.
This “wall of money” has transformed firms such as Azets. CFO David Aikman says private equity backing gave the firm “the firepower to expand its footprint” across the UK, while investing heavily in technology and training. “We’ve absorbed traditional partnerships, but we’re now on the cusp of being a fully corporate accountancy business – without losing the collaborative feel,” he says.
The cultural shift
But money isn’t the whole story. Consolidation changes the culture of work. James Hickey, founder of consultancy Herding Cats and Business Vision Consulting, says: “People who joined a single-office firm may not want to be part of a much bigger group.” Some staff leave, but he adds: “Often they are good leavers – people who were coasting get found out. If anything, this is the shake-up the profession needed.”
Rob Newman, managing partner at independent Carter Collins & Myer, has seen the other side. After three big independents in Manchester sold to private equity, six tax managers applied for a role at his firm. “They reported the same story: culture change, cost pressure, feeling like a cog,” he recalls.
Yet for others, corporatisation offers clarity. Azets has introduced structured career pathways, secondments across regions and even opportunities in its European businesses. “Mobility works both ways,” says Aikman. “If an acquisition has gaps, we open secondment opportunities. Service-line moves are common, too.”
For ambitious professionals, these firms offer fast-tracked career paths, exposure to larger clients and access to cutting-edge tools. But the pace and nature of change isn’t for everyone.
What it means for careers
Recruiters confirm the scale of change. “Consolidation is progressive – creating scale, solving succession challenges and enabling investment in technology, including AI,” says Lorraine Twist, accountancy and finance UK&I director at Hays. “For ambitious professionals, these firms offer fast-tracked career paths, exposure to larger clients and access to cutting-edge tools. But the pace and nature of change isn’t for everyone.”
For trainees, the picture is particularly mixed. Gareth Cowan, founder of Trace Expert Accountancy Recruitment, highlights how graduate intakes at the Big Four are being cut by up to 20% year on year, with the rest of the market incapable of picking up the slack. “There are fewer sponsored training contracts because more work is being automated or outsourced, which means far fewer opportunities for trainees,” he explains.
And while the so-called disruptors are investing in technology and regional models, they don’t recruit at the same volume. “They don’t intake anywhere near the same numbers [as the Big Four],” Cowans adds. “They also outsource a lot, so while there are opportunities, they don’t fill the gap.”
Tech and outsourcing
This outsourcing – often to south or east Asia – is part of the private equity playbook. For investors, the appeal is simple: maintain or grow the client base while reducing headcount. “From a private equity perspective, the attraction is clear,” Cowan says. “For accountants looking for roles, yes, there’s less opportunity. But for people with tech and data skills, there’s more. Systems can handle reporting; what employers want is people who can interpret numbers, analyse trends and tell the story.”
That shift is echoed inside consolidators themselves. Aikman says Azets is experimenting with more than 80 proofs of concept for AI across the business. “The point isn’t ‘AI takes jobs’; it changes the work,” he says. “Used well, it speeds up analysis and lets our people move to higher-touch advisory – turning data into timely, actionable client insight.”
Hickey sees a broader horizon: “Progressive firms celebrate big trainee intakes, but I’d ask, why so many traditional roles? Where are the data scientists, MBAs and different profiles you’ll need in five to 10 years? If you’re a numbers factory, fine, design for that. If you want high-margin advisory, build a different business with different people.”
Winners and leavers
These pressures are altering career dynamics at all levels. Underwood highlights how selling partners’ profit shares are effectively converted into salaries. “For ambitious seniors who aspired to equity-style earnings, the ceiling lowers,” he says. “We’re seeing more CVs from people leaving consolidators after 12 to 18 months.”
Newman believes this will lead to polarisation: large corporate groups on one side and niche independents and sole practitioners on the other. “We’ll see lots of small specialists collaborating informally,” he predicts. He also notes a cultural change among younger accountants. “The under-40s don’t see other accountants as enemies; they collaborate via private groups, share work and help each other, which is very different from the old adversarial culture,” he says.
Cowan adds another layer: the contradiction between shrinking trainee intakes and ongoing demand for qualified accountants. “Because firms are hiring fewer trainees, there are fewer qualified accountants coming through,” he says. “Combine that with the fact that fewer graduates want to go into accountancy and you have a supply problem. So, for those who do train, demand should stay strong.”
Skills for the future
For AAT members, the direction of travel is clear: pure number crunching is no longer enough. Hickey argues that digitalisation is “table stakes” and the differentiator is mindset, highlighting a need for an “openness to change and continuous learning”. He says: “Those who can face clients, interpret data and solve problems move forwards.”
Cowan recommends building skills in finance technology, data and programming. “The profession is becoming increasingly data driven. Communication and tech skills are in demand now,” he says.
Aikman agrees that the “right mindset” today is different. “We look for curiosity, a critical-friend mindset and comfort with technology,” he says. “If a firm looks ‘old school’, you lose graduates.”
Independence still matters
Despite the consolidators’ momentum, independence remains part of the landscape. Newman insists: “Most accountants I speak to still want to remain independent. That voice is quieter at the moment because of the ‘big money’ around consolidation, but it’s very real.”
And independents can still offer compelling careers. “Trainees often get broader experience in smaller or regional practices,” says Cowan. “You’re exposed to more industries and clients, whereas in the large firms you might spend three years auditing a single client.”
A career crossroads
So, is consolidation good or bad news? The truth, say the experts, is it depends on mindset. If you want entrepreneurial control, a smaller firm culture, broader early experience, closer client contact and, sometimes, a faster path to autonomy, independence may suit you better. If you prefer structure, mobility, resources and cutting-edge tools, a consolidator could be the right home. Either way, Underwood says “know your disposition”. He adds: “Mid-size independents, in particular, have a compelling offer for ambitious graduates and seniors.”
Twist sums it up, saying: “Private equity is a disruptor, but whether it’s positive or negative depends on how thoughtfully the change is implemented. For individuals, adaptability is key. Staying close to your values will help you navigate this transformation successfully.”
What is certain is that consolidation and private equity are here to stay. For AAT members, the best defence is to stay adaptable, broaden your skillset and see disruption as a source of opportunity rather than threat.
>> The consolidators
* Metrics (staff, offices, revenue) are drawn from public commentary, trade press and deal announcements. Some are estimated or rounded.
