2026 PE Buyer Preferences: What Private Equity Funds Are Targeting in Accounting Practices Right Now
Ashley-Kincaid | June 25, 2026
Private equity continues to reshape the CPA firm M&A landscape in 2026. With multiple funds in active deployment, understanding exactly what PE buyers are seeking — and how timing intersects with fund cycles — has never been more important for maximizing your EBITDA multiples.
1. What Private Equity Funds Are Prioritizing in 2026
PE platforms are becoming increasingly selective. The strongest offers go to firms that check these key boxes:
High Percentage of Recurring Revenue Buyers heavily favor practices with 70%+ recurring or reoccurring revenue (core assurance, advisory retainers, CAS, outsourced CFO services). This directly supports stronger multiple arbitrage opportunities.
Robust Adjusted EBITDA Margins Most funds target 25%+ post-normalization margins, with premium valuations (often 4.0x–5.5x+) reserved for firms consistently above 28–30%.
Client Retention and Concentration Retention rates above 90% are table stakes. Single-client concentration above 10–12% typically triggers valuation discounts.
Talent Depth & Reduced Owner Dependency Strong second- and third-tier leadership is critical for post-acquisition scalability.
Technology & Operational Maturity Cloud-based systems, automation, and data analytics capabilities are major positive differentiators.
2. Current Deal Structures Preferred by PE Buyers
| Deal Component | Typical 2026 Range | Notes for Sellers |
|---|---|---|
| Cash at Close | 30–60% | Higher for strong platform fits |
| Equity Rollover | 20–40% | Commonly required for alignment |
| Seller Note / Earnout | 0–20% | Used to bridge gaps |
| Overall EBITDA Multiple | 4.0x – 5.5x+ | Premiums during active deployment |
Funds in the middle of their deployment cycle are generally more aggressive on cash components and flexible on structure.
3. How Fund Deployment Cycles Influence Your Timing & Outcome
As explored in our main analysis on PE fund deployment cycles and multiple arbitrage, selling while a fund is actively deploying capital often yields better terms, higher multiples, and more competitive processes.
Firms that align their sale timeline with strong deployment windows frequently see 0.5x–1.0x+ higher EBITDA multiples compared to those selling at the end of a fund’s investment period.
Actionable Steps for CPA Firm Owners in 2026
Evaluate your firm against current PE criteria using normalized financials.
Strengthen recurring revenue streams and document technology investments.
Time your outreach to coincide with active PE deployment periods.
Work with an experienced advisor who maintains real-time relationships with active buyers.
Ready to see how your practice stacks up against current PE buyer preferences? Contact Ashley-Kincaid for a confidential valuation and buyer-fit assessment.