In a significant development within the accounting industry, Baker Tilly and Moss Adams have announced a $7 billion merger, set to finalize in early June 2025. This consolidation will create the sixth-largest certified public accountant (CPA) advisory firm in the United States.

The combined entity will operate under the Baker Tilly name, with audit functions unified under Baker Tilly US, LLP, and advisory services managed by Baker Tilly Advisory Group, LP. Jeff Ferro, the current CEO of Baker Tilly, will lead the merged firm until his retirement in January 2026, after which Moss Adams’ CEO Eric Miles will assume the role.

Private equity firms Hellman & Friedman and Valeas Capital Partners are investing in the newly combined entity. Notably, in 2024, these firms acquired a majority stake in Baker Tilly, valuing the enterprise at over $2 billion.

The merger aims to strengthen the firms' presence in the middle market for accounting, tax, and consulting services. The combined firm is targeting $6 billion in annual revenue by 2030, a significant increase from the over $3 billion they collectively generated in 2024.

This consolidation reflects a broader trend in the accounting sector, where mid-sized firms are merging to scale nationally and remain competitive. The involvement of private equity underscores the growing influence of external capital in reshaping the industry.

Prior to the merger, Baker Tilly was the tenth-largest accounting firm in the U.S. In 2024, the firm sold a majority stake to Hellman & Friedman and Valeas Capital Partners, aiming to accelerate acquisitions in the consolidating accounting and consulting sector.

Moss Adams, ranked 14th among U.S. accounting firms by revenue, generated approximately $1.3 billion in 2023. The firm has been expanding its services, including the acquisition of Yurgosky Consulting in December 2024 to enter the Salesforce consultancy market.

Legal counsel for the merger was provided by Simpson Thacher & Bartlett LLP and Vedder Price PC, while Deutsche Bank Securities acted as the financial advisor.

This merger is part of a series of consolidations in the accounting industry, driven by the need for mid-sized firms to scale operations and enhance service offerings. The involvement of private equity firms in such mergers is becoming increasingly common, providing the necessary capital for expansion and technological advancements.

As the accounting industry continues to evolve, the Baker Tilly and Moss Adams merger exemplifies the strategic moves firms are making to adapt to changing market dynamics and client needs.