The U.S. Public Accounting Industry: Fragmentation, Consolidation & M&A Trends (2017-2026)
The U.S. Public Accounting Industry: Fragmentation, Consolidation & M&A Trends (2017–2026)
The U.S. public accounting industry continues to display a striking dual structure: extreme fragmentation at the base and rising concentration of revenue at the top.
Key Industry Findings from the Latest Data
95.3% of all CPA firms still have fewer than 20 employees
These smaller firms now generate only 18.3% of total industry receipts (down from 23.3% in 2017)
The largest 0.2% of firms (those with 500 or more employees) control 66.2% of industry receipts — up from 58.4% in 2017
The total number of firms has declined from approximately 53,167 to 50,885
While the base of the industry remains highly fragmented, market power and economic value are becoming increasingly concentrated among a small number of scaled, well-capitalized practices.
What This White Paper Analyzes
This report examines the structural evolution of the U.S. public accounting industry using U.S. Census Bureau data from 2017 and 2022/2025. It explores:
Why fragmentation persists among the vast majority of firms
How private equity and strategic buyers are accelerating consolidation
The growing gap between “average” and “premium” firms
What sophisticated buyers prioritize in today’s market
Practical implications for CPA firm owners considering growth, succession, or exit
Strategic Implications for Firm Owners
Firms that remain operationally fragmented, highly owner-dependent, or limited in recurring revenue face greater challenges attracting competitive buyer interest and achieving strong valuations. In contrast, practices that strengthen scale potential, recurring revenue, second-tier leadership, and financial cleanliness are better positioned to benefit from ongoing consolidation trends.
This white paper provides a clear, data-driven view of the current landscape and the strategic choices available to firm owners in 2026 and beyond.
