Smaller firms face rising costs, compliance demands and need to invest in technology, making it hard to stay competitive in an ever evolving market. Furthermore, many firm owners are nearing retirement and lack clear succession options, prompting them to consider selling their businesses.

Investor interest in Luxembourg’s chartered accountancy sector is expanding. It's no longer just local consolidators; international private equity players, foreign chartered accountancy firms, and trust and corporate services providers (TCS) are also eyeing opportunities.

The Luxembourg chartered accountancy landscape

The market is fragmented, with around 465 groups registered with the OEC, employing about 13,800 people. The Big 4 firms account for roughly 70% of this workforce. As one might expect, many firms are concentrated in and around Luxembourg City, serving unregulated vehicles, holding companies, corporate clients, small and medium-sized enterprises (SMEs), and private clients.

Beyond traditional services like accounting, tax and payroll, some firms offer corporate services, aligning them closer to the thriving ecosystem including regulated professionals of the financial sector (PFS).

M&A trends and drivers

More widely, global M&A activity in the chartered accountancy sector has surged, driven by private equity firms attracted to these stable businesses with long-term client relationships and recurring revenues. Historically, chartered accountancy firms were hesitant to open their capital to external investors, but this is changing as they seek transformation which requires significant investments.

In the US, a fragmented market with over 80,000 accounting firms, nearly one-third of the top 30 chartered accountancy firms are now backed by private equity, including EisnerAmper (TowerBrook Capital Partners), PKF O’Connor Davies (Investcorp and Public Sector Pension (PSP) Investments), Carr Riggs (Centerbridge), Citrin Cooperman (backed by Blackstone), Grant Thornton (New Mountain Capital) and Baker Tilly (Hellman & Friedman and Valeas Capital).

This trend has extended to Europe, with notable deals in several countries, including, for example:

- UK: Grant Thornton UK (Cinven), Unity Advisory (Warburg Pincus), Dains Accountants (IK Partners), Azets Group (Hg Capital and PAI Partners), S&W (Apax), Moore Kingston Smith (Waterland);

- France: KPMG’ s accounting and social management business to very small businesses and SMEs (TowerBrook Capital Partners); and

- Belgium and The Netherlands: PIA Group (Baltisse), Moore (Waterland), Baker Tilly Netherlands (Inflexion), DK Accountants & Adviseurs (Anacap).

In Luxembourg, private equity has fuelled significant M&A activity in CSSF-regulated sectors like management companies and professionals of the financial sector. In the local chartered accountancy sector, private equity involvement is a relatively new trend. These firms are now joining local consolidators, international strategic buyers, and TCS firms, all on the lookout for acquisition opportunities in this attractive and fragmented market.

Recent examples of this private equity backed trend in Luxembourg include:

- April 2025: Grant Thornton Luxembourg announced that it will , a platform established with the backing of an investor group led by New Mountain Capital.

- March 2025: Fiduciaire Jean-Marc Faber announced the  .

- March 2025: Hoche Partners Corporate Services, backed by Amethis Europe Expansion since 2024, announced their .

Several factors are driving the increase in deal activity within the chartered accountancy sector. M&A transactions offer firms access to external capital and expertise, enabling them to pursue their transformation agendas with investments in technology, automation, and AI-driven accounting solutions. Additionally, strategic M&A deals enhance service offerings, meeting clients’ growing demand for a comprehensive suite of advisory solutions.

Moreover, M&A provides existing partners with a pathway to liquidity, allowing them to retain potential upside through earnout mechanisms, partial equity reinvestment and participation in long-term investment plans (LTIP). As many firms face succession challenges, a well-prepared and timely M&A transaction presents an attractive solution for ensuring continuity and a smooth leadership transition.

Outlook and strategic implications

Luxembourg’s chartered accountancy sector has flourished thanks to strong market fundamentals, creating an attractive yet highly fragmented landscape. However, in today's environment, scale is becoming increasingly crucial. Firms must invest in their people, technology and new service lines to meet rising compliance obligations, stay competitive and seize new opportunities.

M&A activity is expected to ramp up, driven by a growing number of strategic and financial investors eager to deploy capital in this promising sector. At the same time, many business owners are at a strategic crossroads, contemplating the future of the firms they built years ago.

For those considering leadership transitions through M&A, planning ahead is essential to achieve the optimal outcome. The right choice of actions will depend on owners’ objectives and vision for their business and staff. Ultimately, chartered accountancy is a people-centric industry where the true value walks out the door every night. Finding the right partner who shares the same values and vision for the business is paramount.

Author: Marco Houscheid is advisory partner at PWC Luxembourg.

The author of this article acted as financial advisor to the sellers.