Why 2026 will be a pivotal year for accountancy M&A – Are you ready?

Gerard Pieterse, manager and Christian Davis, associate partner at commercial data solutions provider JMAN Group, explain why 2026 will be a defining year for merger and acquisition (M&A) activity in accountancy – and how data will separate the winners from the rest

For decades the accountancy sector attracted only modest investment, held back by regulatory restrictions, rigid partnership structures and the challenge of scaling traditional service models.

But this is shifting quickly. As ownership rules open up and technology enables new operating models, recent years have seen investor interest in the profession not only remain resilient but intensify.

According to one recent study, private equity (PE) activity in the sector has accelerated sharply, with more than 118 tracked US accountancy deals between 2020 and late 2025, and an estimated 200 transactions across Europe in 2024 alone.

A separate report suggests PE firms now own ten of the largest accounting practices in the US. The UK is moving in a similar direction with research revealing that 25% of UK mid-tier firms have already taken PE investment and 46% of top-60 UK firms are open to it. 

Several factors account for PE’s growing interest in accountancy. Primarily, accountancy firms typically have stable, repeating revenue streams unlike other sectors that might be more susceptible to economic downturns.

Secondly, the sector is on the cusp of significant transformation, with advances in artificial intelligence continuing to redefine how firms operate and widen the gap between those that have modernised and those trying to catch up.

This creates a major opportunity for PE investors to help shape and benefit from the next wave of industry innovation.

An arms race for assets

To this end, 2026 is expected to be another defining year for PE-backed consolidation across every major region as investors increasingly target accountancy platforms with strong quality-of-earnings profiles and the potential to scale efficiently.

The result is effectively an ‘arms race’ as both PE investors and strategic consolidators compete to secure the best opportunities. Put simply, everyone wants a piece of the pie, viewing accountancy as a future-proof market with lower risk as part of a balanced portfolio. 

From our vantage point at JMAN Group, the acceleration is clear. But this shift is also changing the playing field. Having worked with over 15 accounting-focused firms in Europe and North America since 2019, we continue to see that even where consolidation looks attractive on paper it is only those firms with strong data foundations that can capitalise on the opportunity.

The benefits of this new data focus are twofold and complementary. Foremost, at an operational level data helps firms to identify opportunities to expand revenue from their existing client base, manage fee earner performance, and benchmark internally and externally to identify and address underperforming segments to increase time available for value-additive, fee-earning work. This leads to higher profit margins and a more proactive, strategic approach to business. Secondly, at the deal stage the same data supports a compelling equity story, allowing management teams to demonstrate performance drivers and navigate diligence with ease.

Together, these capabilities can help drive higher valuations: operational excellence differentiates the firm, while robust analytics strengthen investor confidence in future returns. In short, data is no longer just a supporting tool: it is the currency of deal-making.

Data: the new deal-sourcing currency

Take, for instance, the pre-deal and due diligence process. Whereas accountancy M&A historically relied on partner relationships and headline financials, today’s consolidating market has become much more data-driven in identifying investable stock.

For investors and management teams, understanding group performance at a granular level is now a prerequisite. Instead of reputation-based judgements, they are now leveraging structured datasets – ranging from audit quality indicators and sector-specific track records to partner-level expertise, technology adoption and cross-border regulatory compliance performance.

Yet, the number of firms able to support this type of intel is still surprisingly rare. Many accountancy practices, particularly those that have grown through acquisition, struggle with inconsistent systems, localised reporting structures and datasets that have not been designed for integration.

When firms cannot clear comprehensive, clean and standardised data packs, it not only becomes enormously difficult to make informed decisions but can come as a serious red flag for investors.

In several of the transactions we have supported recently, data maturity supported with a solid equity narrative has been a decisive factor in securing stronger valuations and faster deals. Conversely, poor data discipline often results in delays, heightened risk perception and, in some cases, value erosion.

Creating value from data

Beyond operational gains, robust data foundations allow consolidators to demonstrate tangible outcomes to investors, supporting a faster and more confident pace of acceleration.

Once a transaction closes, the clock starts on integration and value creation, and the most successful consolidators leverage data to implement repeatable integration playbooks. These playbooks not only help identify the best potential targets but help firms to onboard new acquisitions with speed and consistency.

During integration, they allow consolidators to pinpoint underperforming segments, enhance pricing discipline, and uncover cross-sell opportunities that would be difficult or impossible to detect without a unified view of the client base.

Increasingly, AI is also being deployed to improve forecasting, capacity planning and workflow optimisation but these tools are only effective when built on clean, reliable data.

Data as a dealbreaker

Consolidation will undoubtedly reshape the accountancy sector over the next 18 months, but its impact will not be uniform. From our experience operating in this lucrative consolidating market, the firms that emerge strongest will be those that recognise the central role of data in creating, capturing and defending value.

As competition intensifies and investor expectations continue to rise, data maturity will no longer be a differentiator; it will be a prerequisite. Those who invest early will be best placed to thrive in the next era of accountancy M&A. Those who do not will leave value on the table.