Professional services firms seek PE money to expand as scale becomes a necessity

Mumbai: The worldwide pattern of personal fairness getting into skilled providers is gaining traction in India as nicely. Grant Thornton Bharat, the nation’s fifth-largest skilled providers supplier, is in talks with 5 funds to lift cash following comparable offers by smaller companies Uniqus Consultech and KNAV, and consultants say extra such transactions are within the offing.Globally, over the past two years, associates of second-tier international networks similar to Grant Thornton, BDO, Baker Tilly and RSM have raised non-public fairness or bought holdings of their regional arms to gasoline international enlargement, compensate companions competitively, and spend money on know-how. A few of these networks have robust India operations.

On April 21, Baker Tilly and Moss Adams introduced a $7 billion merger to kind the sixth-largest consulting CPA agency within the US, backed by Hellman & Friedman and Valeas Capital Companions. Baker Tilly’s UK community member, MHA, accomplished a £98 million IPO on April 15, 2025.

Grant Thornton Advisors USA and Eire, backed by New Mountain Capital, expanded their multinational platform on April 23 by merging associates from the UAE, Luxembourg and the Cayman Islands, with further tie-ups within the works. GT UK had beforehand secured non-public fairness funding from Cinven.

In India, Grant Thornton Bharat is seeking to promote a stake in its holding firm, Grant Thornton Advisory Pvt Ltd, to lift funds. “That is about corporatisation and capitalisation, as we intention to construct the primary India-led international skilled providers agency,” mentioned chief govt Vishesh C Chandiok.

PE funding permits companies like Grant Thornton to problem the established order by providing inventory choices to their workers, disrupting the 100-year-old partnership construction, he mentioned. “With the worth of inventory, companions can count on a 3x+ uptick in annual earnings. More and more, true companions need to shift from being employee-like, comparatively fixed-share earners to value-oriented owner-shareholders at GT Bharat.”Since a possible funding in Grant Thornton Bharat would be the first massive deal within the Large Six in India, some consultants imagine it would mark a step change in PE investments in skilled providers within the nation. To date within the sector, Uniqus Consulting raised $20 million in April and KNAV obtained a minority funding from Zerodha’s Nikhil Kamath in September 2024.Networks exterior the Large 4 usually are not tightly managed constructions, permitting well-capitalised nation companies to spend money on member companies throughout different geographies as nicely.

Want for scale
Going through consolidation pressures, succession hurdles and the push to develop non-audit companies, Indian skilled providers companies could have to pursue mergers or non-public capital to fund tech upgrades and scale.

“I’ve engaged a banker within the US to scout for smaller CPA companies,” mentioned Jeenendra Bhandari, companion at MGB, an Indian skilled providers agency. “The India-US hall presents important potential, with Indian back-end capabilities supporting a US entrance finish. Going ahead, entry to capital will probably be a key aggressive benefit,” he mentioned.

“Proper now, we’re a well-capitalised and debt-free agency, however when the time is correct, we might be open to exploring development capital from non-public fairness,” mentioned Ajay Sethi, founder and managing companion of Baker Tilly ASA India LLP. “Accessing funds ought to be with a transparent development and deployment plan.”

Globally, non-public equity-led consolidation is reworking the skilled providers sector, however in India, M&A stays uncommon and contentious, continuously hampered by companion conflicts, energy fights and a strongly entrenched personality-driven tradition. After the preliminary wave of Indian companies’ integrations into the Large 4 networks in Nineteen Nineties and early 2000, few have labored.

In June 2002, Andersen India merged with EY, however in November 2003 a management conflict noticed chief govt Bobby Parikh lose an inner election for CEO place to Rajiv Memani, son of then-chairman Kashi Memani, prompting a number of companion exits. Years later, BMR & Co—based by Parikh, Mukesh Butani and Rajiv Dimri—break up in 2017, with Deloitte and KPMG buying completely different elements, underscoring the sector’s integration challenges.

In February 2007, PwC introduced plans to merge the tax and advisory practices of Ambit RSM with its personal. However by 2009, a number of senior companions, together with famous tax skilled Dinesh Kanabar, walked out, finally becoming a member of KPMG. Kanabar went on to launch Dhruva Advisors in 2014.

Shifting fashions
Worldwide, the deal momentum has been constructing over 2–3 years, pushed by non-public fairness chasing steady recurring revenue, a fragmented market ripe for consolidation, a scalable business mannequin and a sticky, loyal shopper base.

An investor group led by Blackstone acquired a majority stake in Citrin Cooperman from New Mountain Capital, whereas Centerbridge Companions and Bessemer Enterprise Companions backed Carr Riggs & Ingram, TowerBrook invested in EisnerAmper, and Parthenon Capital in Cherry Bekaert. In the meantime, ex-EY and PwC companions, with $300 million from Warburg Pincus, are launching a Large 4 challenger, Unity Advisors.

In an indication of shifting fashions, BDO USA raised $1.3 billion from Apollo in 2023 to fund worker belief and refinance debt, whereas Aprio, backed by Charlesbank, acquired RSM US’ PS+ observe in March 2025.

Specialists say scale is not optionally available—it is a should for survival. Midsize companies should both develop geographically, spend money on know-how, undertake leaner possession fashions and globalise for value efficiencies, or threat being aspect lined.