On October 22, 2025, global auditing firm BDO issued a directive advising its member firms to refrain from accepting external private equity investments. This guidance comes in response to a surge in interest from buyout firms seeking to invest in accounting and advisory firms. BDO’s decision underscores a strategic move to maintain independence and avoid the pressures associated with private equity ownership.
Pat Kramer, BDO’s global CEO, emphasized that the firm is “choosing independence from a position of strength.” He highlighted that BDO aims to accelerate internal consolidation among its member firms, rather than pursuing external equity partnerships. This approach is seen as a “defensive consolidation” strategy, aiming to compete with private equity-backed rivals by enhancing internal efficiencies and maintaining control over operations.
The move aligns with a broader trend in the industry, where accounting firms are re-evaluating their growth strategies. For instance, RSM’s UK and US branches have agreed to form a $5 billion transatlantic partnership, effective January 1, 2026. This partnership focuses on aligning client service, financial incentives, and growth investments, though it stops short of a full merger initially proposed in 2024.
BDO’s decision reflects a cautious approach amidst a rapidly evolving market landscape. By opting for internal consolidation over external investment, BDO aims to preserve its autonomy and continue delivering value to its clients without the complexities introduced by private equity ownership.
As the industry continues to navigate these dynamics, BDO’s strategy may serve as a model for other firms considering their positions in the face of increasing private equity interest.
