Accountancy firms continue to face significant challenges when attempting to go public, as exemplified by the experiences of several well-known firms. Despite their expertise in financial structuring, these firms often encounter difficulties balancing investor expectations, market volatility, and the unique dynamics of their professional services.

RSM, ranked as the fifth-largest accounting firm in the United States by revenue and seventh globally, is currently considering a flotation. However, its history offers cautionary lessons. The U.S. arm of RSM spent around ten years as a publicly traded entity under H&R Block before returning to private ownership. Similarly, RSM Tenon, the UK affiliate and a predecessor to the current firm, was publicly listed on the London Stock Exchange until it succumbed to insolvency and regulatory penalties. These precedents highlight the risks associated with maintaining a public listing in the sector.

Beyond past failures, the pressures of quarterly earnings reports, unpredictable market movements, and volatile shareholder sentiment weigh heavily on publicly listed accounting firms. CBIZ, an American firm with three decades of operations, provides a recent example. Its stock has declined sharply over the past two years amid disappointing earnings results. Although Grant Thornton, backed by private equity firm New Mountain Capital, made a takeover bid this year, the offer did not exceed CBIZ's share price from six months earlier, underscoring investors’ cautious stance.

The fundamental challenge for accountancy firms is their reliance on human capital. Partners and professionals represent the main assets, and the risk of talent attrition is high, particularly when equity shares are diluted among external investors. This potential tension can discourage long-term partner commitment in public firms.

Accountants do enjoy some advantages over legal firms, as their revenues tend to be more predictable due to the necessity of regular audit work, even in downturns or amid reduced deal activity. However, this stability is less assured among smaller clients, such as startups, which face higher rates of failure or acquisition. Moreover, advances in technology—including artificial intelligence and automated accounting tools—pose a threat by enabling clients to handle more tasks internally.

In contrast, private equity ownership has emerged as a more viable pathway for many accounting firms aspiring to rapid growth. Boutique firms founded by former Big Four managers frequently rely on private equity investment to expand. Grant Thornton in the United Kingdom, now majority-owned by private equity group Cinven since 2024, exemplifies this model and has reportedly gained an edge in recruiting talent by offering graduate salaries surpassing those at larger competitors.

Ironically, the consolidation driven by private equity is intensifying competitive pressures across the sector, compelling firms to increase investments in technology and talent to keep pace with their larger counterparts. As the industry shifts away from traditional billable hours and adapts to automation, established partnership structures may become less sustainable. Yet for most accounting firms, alternatives to public listing—including private equity backing—appear to offer a more balanced approach to growth and stability.