Riding the Consolidation Wave — Why Mid‑Tier Firms Should Invite M&As in 2025
The accounting industry in Australia is consolidating faster than many realise. In Q2 2025 alone, there were 169 M&A transactions worth US$35.6 billion, even as deal volume dipped 29.6% year‑on‑year. :contentReference[oaicite:0]{index=0} For mid‑tier firms, this environment presents an opportunity—not a threat. Merging into or acquiring smaller firms can inject scale, resources and cross‑selling potential.
Why the Timing Works
- Dry powder for buyers: Private equity and strategic players hold capital and are looking for yield.
- Under‑resourced niches: Many small practices lack modern systems or advisory arms—ripe targets.
- Strategic geography expansion: Firms like Cutcher & Neale are expanding via merger with BBB Partners, entering new markets. :contentReference[oaicite:1]{index=1}
How Mid‑Tier Firms Can Position Themselves
- Clarify your niche and management style.
- Upgrade your systems so acquisitions plug in smoothly.
- Prepare a capital raise or equity structure that makes you attractive to buyers or partners.
- Show financials with recurring revenue, client retention, and margin growth.
What to Watch Out For
- Culture mismatch—don’t sacrifice your identity.
- Overpaying for small firms with weak books.
- Client attrition—ensure smooth client handovers.
In short: the M&A wave isn’t just for big players. If you’re a mid‑tier firm, lean into consolidation, but do it smartly so your voice and value stay intact.