A significant increase in merger and acquisition activity within the accounting sector since the start of 2015 is likely to continue, with top-tier firms buying smaller players to boost their service offerings and lower tier firms looking to merge.
In a report published by AccountantsDaily, Rob Bazzani, recently appointed head of KPMG’s private enterprise practice, says changing client expectations will drive industry consolidation as smaller accounting practices struggle to compete with the full-service offerings of large professional services firms.
Bazzani says clients now expect an adviser to provide a full suite of services and this will drive consolidation across the accounting profession. He expects the acquisition activity to be industry-wide.
“I think it would be fair to say that the entire market is evolving to where accountants need to be a true adviser, a true professional services firm rather than being viewed as an accountant or a tax adviser,” he said.