Baker Tilly and Moss Adams Join Forces as Private Equity Influences Accounting Landscape

Baker Tilly and Moss Adams, both prominent mid-market consulting firms in the USA, have successfully merged into a single entity, creating the sixth largest accounting firm in the nation by revenue, surpassing BDO, Grant Thornton US, and CLA. This merger, facilitated by private equity interventions, represents a transformative shift in the US accounting industry. Baker Tilly, due to a strategic infusion of capital by Hellman & Friedman (H&F) and Valeas, aims to redefine its business model to include broader technological and data evolutions, setting a precedent for other accounting firms shifting from traditional partner-owned models. By teaming up, Baker Tilly and Moss Adams seek to bolster their capabilities across geography — with Moss Adams being a West Coast leader and Baker Tilly having an East and central stronghold — and unify their specialized services in various industries. Jeff Ferro, Baker Tilly's CEO, emphasizes the strategic nature of the merger and the increased likelihood of achieving their growth objectives. Ferro envisions the merged firm attaining a $6 billion revenue within a five-year span. The firm will retain the Baker Tilly name with Eric Miles of Moss Adams poised to assume the CEO role upon Ferro’s retirement. Both CEOs highlighted the importance of achieving more comprehensive service offerings for an evolving mid-market clientele amidst increasing pressures for scaling fixed costs like training, development, and AI. They believe the expanded scale will be vital for them to thrive competitively in the future.