Lorna Osborne, Corporate Partner and Co-Head of the Professional Practices Group at Addleshaw Goddard Ireland, examines the latest trend of mergers within the accountancy sector.
Barely a week passes without news of another shake-up in Ireland’s accountancy market, as mergers, acquisitions, consolidation and new entrants dominate the headlines.
In recent years, a wave of consolidation, increasingly backed by private equity, has rapidly reshaped the Irish accountancy market.
Xeinadin, a UK and Irish accountancy group backed by private equity firm Exponent, describes itself as the “UK and Ireland’s Largest Professional Services Consolidator”.
Through the extensive consolidation of small to medium-sized accountancy firms, Xeinadin now boasts over 130 offices across the UK and Ireland.
Just last month, RSM UK and RSM US announced their transatlantic merger, effective from 1 January 2026.
This follows swiftly on the heels of RSM UK’s acquisition of RSM Ireland in November 2023.
Meanwhile, BDO UK is in advanced merger discussions with its Irish sister firm, BDO Ireland.
The two firms are finalising discussions and awaiting a partner vote and regulatory approval but, if successful, this consolidation will combine the BDO’s Dublin and Limerick offices with the UK firm’s 18 offices, creating a powerhouse of over 8,500 employees and 540 partners.
What is driving this wave of consolidation?
The consolidation in the accountancy sector is being driven by a combination of factors, including the need for greater investment in technology, increased regulatory complexity and clients’ increased expectations for a broader range of services and international reach.
As compliance requirements become more demanding and costly, smaller firms are finding it difficult to keep pace.
For many, consolidation offers an attractive way to achieve economies of scale and share resources.
Larger, consolidated firms are also better positioned to invest in technology, attract top talent and deliver integrated services across multiple jurisdictions – capabilities that are increasingly important to clients.
Additionally, private equity (PE) investors have shown growing interest in Irish accountancy firms, attracted by their stable and recurring revenues streams, strong cash flows and growth potential.
PE investment brings the capital needed to support further growth and consolidation in the sector.
Key considerations for firms
For small to medium firms considering consolidation, several potential advantages exist, including:
Access to capital: Consolidation gives firms greater access to funds to upgrade IT systems, invest in new technologies, hire skilled professionals and expand into new practice areas.
Stronger market position: Consolidated firms also have the potential to broaden their services, increase and globalise their market reach attracting higher-profile clients.
Succession Planning: Investment may also solve succession challenges faced by many small to medium-sized accountancy firms. A buyout can offer retiring partners a profitable exit, while ensuring the continued operation of the business.
While consolidation offers several opportunities, it is important to acknowledge that external investment also brings challenges, including:
Pressure for short-term gains – PE investors typically seek substantial returns, which may result in aggressive growth strategies or cost-cutting measures. It is crucial to fully understand the investor’s short and long-term goals for the firm before proceeding with any investment.
Cultural fit and integration – Accountancy is a people business and maintaining a strong culture is key to keeping both employees and clients satisfied. Consider how your staff will be supported in both the short and long-term. For instance, will employees’ roles change? Is there a risk of redundancies? Will the investor implement employee retention and incentive programmes?
Regulatory challenges – The complexity of PE ownership structures can create difficulties in meeting regulatory requirements, particularly domestic ownership rules for audit firms. Irish regulators are closely monitoring this consolidation trend and investment in the accountancy sector and have continued to emphasise the importance of maintaining the independence and quality of audits.
Lorna Osborne, Corporate Partner and Co-Head of the Professional Practices Group at Addleshaw Goddard Ireland
Do the benefits outweigh the drawbacks?
Consolidation, whether driven by PE or more traditional means, is reshaping the landscape of the Irish accountancy market and is set to remain a defining trend for 2026.
While consolidation brings significant opportunities for growth and access to capital, it also introduces challenges, including the risk of cultural misalignment and increased regulatory scrutiny.
Ultimately, those who approach consolidation with a clear focus on culture, people, and regulatory engagement will be best positioned to thrive in this fast-evolving sector.