What Private Equity Can’t Fix: The Human Side of CPA Firm Transformation
Beneath the headlines and M&A activity, a more personal transformation is unfolding.
A client once told me,
“Greg, I feel like I’m captaining a ship in a storm. The firm’s changing fast, my team is overwhelmed, and the partners want results yesterday.”
That image stuck with me, and it perfectly captures what so many professionals in Private Equity (PE) backed CPA firms are navigating today.
Across the accounting industry, PE investment is driving rapid transformation: advisory services are expanding, traditional partnership models are shifting, and firms are reengineering themselves for scale and profitability.
But while the business model is evolving, many firms are overlooking the most important part, the people leading it.
In the rush to modernize the ship, the well-being of the crew, and the clarity of those at the helm, can easily get lost.
The New CPA Firm Model: Growth, Capital, and Culture Compression
For decades, CPA firms followed a familiar path: do great work, put in the time, build client relationships, rise through the ranks, and eventually become partner. It was a stable model, sometimes rigid, but dependable. Ownership and leadership were deeply intertwined.
Now, private equity firms are investing in CPA firms at unprecedented levels. They see strong margins, recurring revenue, and opportunities to scale, especially as firms lean into advisory services and automate more of their compliance work.
To make these models viable, many firms are restructuring under “Topco” and “Holdco” arrangements, which separate CPA ownership from advisory functions. On paper, it makes sense: better infrastructure, access to capital, modern systems, and professionalized operations.
But behind the scenes, something else is happening:
Career paths that once took decades are now being compressed.
Definitions of leadership that held for years are being rewritten or discarded.
And the culture, something firms often spent years building, is being stress-tested by new expectations and speed.
For many professionals, especially those in mid- to senior-level roles, the ground is shifting quickly. And that shift can feel unsettling.
The Pressure That Metrics Can't Measure
Yes, these changes open doors. But they also bring pressure… The kind that doesn’t show up on an income statement.
Team leaders are being asked to do more with less. Revenue, efficiency, and cross-selling targets are rising, but often without the clarity, support, or leadership development that would make those goals sustainable.
Staff, already stretched thin by long hours and high turnover, are asking themselves whether this is the future they want. Some are energized by the change. Others are quietly disengaging.
At the same time, partners are being pulled into a different role, from owner-operator to executive, from technical expert to culture carrier, from mentor to manager. In firms where succession planning was already fragile, this acceleration can feel like trying to lead with no map.
When firms focus only on operational transformation but neglect the internal leadership transformation, the outcome isn’t innovation, it’s burnout.
What Private Equity Can’t Fix in CPA Firm Culture and Leadership
PE brings capital, structure, and strategy. But it can’t build trust. It can’t create alignment. It can’t replace the conversations, relationships, and human insight that allow people to feel safe, seen, and engaged at work.
And it can’t answer the deeper questions so many professionals are now wrestling with:
Who am I becoming in this new environment?
What does success look like now, and is it still something I want?
How do I lead others when I’m still finding my own footing?
This is where the next layer of transformation needs to happen. Not in process flows or growth plans, but in mindset, communication, and emotional intelligence.
And this isn’t just a “nice to have”, it’s strategic.
Studies show that executive coaching in accounting and professional services delivers a return on investment between 529% and 788%, especially during times of change. For private equity-backed CPA firms navigating mergers or roll-ups, coaching is more than a perk, it’s a lever. It helps align leadership, smooth cultural integration, and retain the people you can’t afford to lose. It reduces integration risk and helps leaders turn strategy into action faster. The result? Stronger cultures, steadier teams, and more profitable outcomes, for both firms and investors.
When I work with leaders during these moments of change, we often begin with three questions:
What am I resisting? What part of the change feels uncomfortable, and what belief might be behind that?
Where am I unclear? If I’m feeling overwhelmed, what roles, expectations, or priorities need more clarity?
What do I choose to model? Because leadership in uncertainty isn’t about having all the answers… it’s about how you show up.
Leading Like a Lighthouse: Conscious Leadership in PE-Backed Accounting Firms
In a storm, speed won’t help if no one knows where they’re going. What people look for is a lighthouse; a steady, grounded presence that offers direction, even when the waters are rough.
That’s the opportunity for leaders in today’s evolving CPA firms.
Not to control the change. Not to resist it.
But to lead through it, with clarity, awareness, and presence.
To coach instead of command.
To engage instead of manage.
To be the kind of leader others want to follow.
That kind of leadership doesn’t come from a spreadsheet or a boardroom. It’s built in the quiet moments, the conversations you lean into, the self-awareness you practice, and the decisions you make when things aren’t easy.
Executive Coaching for CPA Firms Navigating Private Equity Transitions
If your firm is evolving and you're trying to lead your team through uncertainty, executive coaching for CPA leaders can be a powerful tool. Whether you're preparing for a merger, restructuring leadership, or trying to prevent burnout in accounting teams, coaching offers a space for clarity, alignment, and conscious growth.
Learn more about how we support CPA firm leaders and PE-backed accounting teams through meaningful transformation.
The Invitation
If you’re a leader, or a rising professional, caught between expectations and uncertainty, you’re not alone. And if you’re trying to guide a team through transformation, now’s the time to focus on the human side of growth.
Because firms don’t transform. People do.
And the ones who do it well become the lighthouses their firms need most.
Would you like help clarifying your next step as a leader or guiding your team more effectively through change?
Let’s talk. You don’t have to navigate this alone.
Sources
MetrixGlobal, Executive Coaching ROI Study
CO2 Coaching, 500%+ ROI of Coaching
Kevin McDonnell Coaching, Executive Coaching ROI