Consolidation activity remains high

Consolidation continues to be a defining feature of the mid-tier accountancy landscape. Acquisition activity is widespread, with nearly three-quarters of firms reporting that they have acquired another firm, and appetite for further acquisitions over the next three years remaining strong. Larger firms and those with private equity (PE) investment are significantly more likely to be acquisitive.

PE investment has become an increasingly prominent feature of the sector. Nearly half of responding firms are now PE-backed, and for these firms external capital is widely associated with acquisitions, investment in technology and talent, and operational change.

However, PE investment is not an attractive route for all. Only a small minority of independent firms are considering PE investment, potentially suggesting that appetite for PE investment may be reaching a plateau across the firms responding. Independent firms not pursuing PE investment cite cultural and ethical alignment and a desire to preserve their firm’s distinct identity and values as the main reasons.

AI and operating models

The impact of technology, particularly AI, is woven throughout the 2026 findings. Almost all firms agree that technology plays a key role in delivering their strategic objectives. Most regard themselves as early majority adopters of AI and believe they are adopting at the right pace.

AI use is already widespread across firms, spanning core service lines as well as for internal knowledge management and client support functions. However, AI use is typically moderate rather than extensive.

Firms overwhelmingly expect both AI and automation use to increase significantly over the next three years and firms have indicated that they will increase the recruitment of specialist expertise, particularly in data and technology-related roles. However, relatively few firms feel confident in assessing the impact AI will have on their workforce, with only 17% expressing confidence in this area.

Growth remains strong

Growth across the mid-tier continues, with almost all firms reporting fee growth in their most recent financial year, and the vast majority expecting growth to continue over the next three years.

The top factors contributing to this growth are increased spend from existing clients, a factor which has been trending upwards since 2024, together with growth in fees from new clients, a factor which conversely has fallen in prominence since 2024.

Service line offerings remain relatively stable. Tax, accounting, audit and advisory continue to dominate, with sustainability-related services developing more gradually. Several firms identify further opportunities for growth in their existing core audit and tax service lines in the future. 

When asked about macro trends driving change in the profession, the impact of regulation was cited less frequently in 2026 than in previous years. However, firms continue to identify it as a constraint on growth. Audit regulation is most often highlighted as challenge, together with anti-money laundering requirements and employment regulation. 

The future of the profession

The nature of roles, skills and career pathways is changing, but confidence in the long-term relevance and value of the profession remains strong.

The findings show that firms have a high level of confidence in the future of the profession, with most agreeing that accountants will remain in demand but for a redefined profession where the focus of roles will shift towards judgement, systems thinking and ethical oversight.

Firms view AI as an opportunity to enhance their service offering; however it will also lead them to reshape their workforce models with an anticipated reduction in more junior roles and a broadening of capabilities at a senior level.

Very few believe that the profession will be less attractive as a result of being replaced by AI.