Private equity capital has reshaped the accounting profession: More than half of the 30 largest US accounting firms now have a private equity investment or ownership stake, up from zero in 2020. That momentum is extending to the broader professional services sector with managed services organizations (MSO) and alternative business structures emerging as scalable investment vehicles that parallel the accounting firm APS model that Hunton helped to pioneer.

Hunton’s accounting firm and professional services M&A practice brings together a team with decades of experience in corporate M&A, private equity investments, joint ventures, regulatory matters, risk management and professional liability, and employee and benefits matters. We serve clients across the professional services landscape, including accounting firms, law firms and legal MSOs, consulting and advisory practices, wealth management firms, managed IT and cybersecurity service providers, and other knowledge-based businesses, representing investors, strategic buyers, targets, and management teams on private equity investments, platform build-ups and add-on transactions, strategic mergers, and dispositions.

Our team represented either the private equity sponsor or the accounting firm in three of the four private equity investments in the Accounting Today Top 100 accounting firm alternative practice structures in 2021 and 2022, the transactions that launched the PE-in-accounting movement. And in the years since, we have been involved in the majority of significant PE investments in Accounting Today Top 100 and Top 25 ranked accounting firms.

We have advised on 100+ accounting firm APS transactions valued at approximately $26 billion in the past five years.

We have also represented the sponsors behind several leading PE-backed accounting firm platform strategies in their investments in the nonattest businesses of dozens of regional accounting firms nationwide, some of which have grown from newly formed, unranked entities to Accounting Today Top 100 firms through the acquisition strategies we helped execute. Our regular interactions with the SEC, PCAOB, and state regulators; depth of experience navigating complex regulatory requirements; and strong knowledge of the application of the auditor independence rules in alternative practice structures inform our approach and client counsel in accounting firm transactions.

Not an Accounting Firm? Hunton’s Experience Extends to MSOs and Alternative Business Structures Across the Professional Services Industry

Beyond accounting, our team advises private equity sponsors, strategic acquirers, and professional services firms on transactions across the broader professional services ecosystem.

As private equity interest in legal services in particular has accelerated materially, our team has advised on some of the earliest transactions in the legal MSO sector. We have represented private equity investors, independent sponsors, AI-native platforms, and technology providers in legal MSO acquisitions. Our legal services practice also includes sell-side representation of law firm partners in transactions with MSO investors. Our experience in legal services transactions covers a variety of sectors, including personal injury, insurance defense, immigration, trusts and estates, creditors’ rights and general corporate law firms.

With 360-degree experience gained from representing sell-side and buy-side clients, our attorneys’ knowledge base covers every stage of a transaction, including deal structuring, drafting, negotiations, documentation, corporate governance, closing, and integration. We understand key terms unique to human-capital-intensive businesses, including equity and incentive structures designed to attract, retain, and align key professionals. And we assist clients with diligence, confidentiality agreements, offers and term sheets, bid submission, advice in specialty areas of law (e.g., securities, real estate, antitrust, litigation, tax, executive compensation, employee benefits, and ERISA), partner voting and execution, logistics, and more.

Whether you are considering a first-of-its-kind platform investment, downstream bolt-on acquisition, or pivotal complex combination, we offer comprehensive advice from initial structuring to post-closing integration with the goal of helping you complete your transaction consistent with your strategic goals.

• Represented Crowe LLP in connection with the formation of alternative practice structure and strategic investment in nonattest business by KKR.
• Represented Eide Bailly LLP in connection with the formation of alternative practice structure and strategic investment in nonattest business by Reverence Capital Partners.
• Represented Armanino LLP in connection with the formation of alternative practice structure and investment in nonattest business by Further Global.
• Represented CohnReznick LLP in connection with the formation of alternative practice structure and investment in nonattest business by Apax Partners LLP.
• Represented Cherry Bekaert in connection with the formation of alternative practice structure and strategic investment by Parthenon Capital.
• Represented New Mountain Capital in connection with its significant growth investment in the nonattest business of Grant Thornton.
• Represented Cohen & Company in connection with the formation of alternative practice structure and investment in nonattest business by Lovell Minnick Partners.
• Represented Citrin Cooperman Advisors in connection with agreement for a significant investment from funds managed by Blackstone.
• Represented Wipfli LLP in connection with the formation of alternative practice structure and investment in nonattest business by New Mountain Capital.
• Represented Fishman Block + Diamond, LLP in connection with its strategic combination with Cerity Partners.
• Represented Bain Capital in connection with its minority growth investment in Sikich LLC.
• Represented TowerBrook Capital Partners in connection with its investment in EisnerAmper.
• Represented CohnReznick in connection with its investments in the nonattest businesses of multiple regional accounting firms.
• Represented Armanino Advisory, LLC in connection with its investments in the nonattest businesses of multiple regional accounting firms.
• Represented Crete Professionals Alliance, a national partnership of accounting and advisory firms, in connection with more than twenty acquisitions, helping Crete become one of the fastest growing accounting firms in the country.
• Represented Trinity Hunt Partners in connection with the development of Springline Advisory Holdings, LLC and its investments in the nonattest businesses of multiple U.S. and international accounting firms.
• Represented F3 Partners LLC in connection with its investments in the nonattest businesses of multiple regional accounting firms and the expansion of Richey May.
• Represented Alpine Investors in connection with the development of the Ascend platform and its investments in the nonattest businesses of multiple regional accounting firms.
• Represented Mennenga Tax & Financial in connection with its sale to Merit Financial Group, LLC.
• Represented Creative Planning LLC, one of the largest Registered Investment Advisors in the country, in connection with its acquisition of the nonattest business of BerganKDV.
• Represented Trinity Hunt Partners in connection with its strategic investment in the advisory business of MarksNelson.
• Represented Smith + Howard in connection with the formation of alternative practice structure and strategic investment by Broad Sky Partners.
• Represented Lightyear Capital in connection with its acquisition of assets from and new venture with Schellman & Company, LLC.
• Represented Mazars USA in connection with its acquisition by Forvis and formation of Forvis Mazars network.
• Represented Summit Partners in connection with its strategic growth investment in UHY.
• Represented Copley Equity Partners in connection with its strategic investment in the nonattest business of ATA Advisory, LLC.
• Represented Flexpoint Ford in connection with its strategic growth investment in Elliott Davis LLC.
• Represented 360 Advanced in connection with minority growth investment by Bregal Sagemount.
• Represented Citrin Cooperman Advisors in connection with its acquisition of the nonattest business of Berdon LLP.
• Represented A-LIGN Compliance and Security in connection with investments by FTV Capital and Warburg Pincus.
• Represented a top 25 accounting firm operating in an alternative practice structure on downstream M&A strategy.