You’ve probably heard the news—or at least the whispers in the breakroom—about accounting firms getting cozy with big money. It’s happening everywhere. But when it comes to Baker Tilly private equity moves, the story isn't just about a firm getting a cash injection. It’s about a fundamental shift in how the "middle market" actually functions.
Most people see a headline like "Baker Tilly Secures Strategic Investment" and think it’s just another corporate buyout. Honestly? It’s more like a fuel upgrade for a jet that was already mid-flight.
The Elephant in the Room: The H&F and Valeas Deal
Let’s get the facts straight. In early 2024, Baker Tilly US made waves by pulling off what was then the largest private equity transaction in the history of the U.S. CPA profession. They didn't just sell out; they restructured.
Hellman & Friedman (H&F) and Valeas Capital Partners stepped in with a massive investment. This wasn't a whim. H&F is a "blue-chip" investor—the kind that doesn't play around with firms unless they see a path to dominating the market.
To keep the regulators and the "independence" crowd happy, the firm split into two pieces:
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- Baker Tilly Advisory Group, LP: This is where the tax and consulting magic happens. It’s the part that private equity actually invested in.
- Baker Tilly US, LLP: This is the licensed CPA firm that handles the audits and "attest" services.
It’s a clever setup. It lets the firm take in hundreds of millions (if not billions) in capital while staying true to the strict rules of the accounting world.
Why Does This Matter to You?
If you're running a company or managing a fund, you might wonder why you should care who owns your accountant. Kinda matters more than you think.
Money buys talent. And in 2026, talent is the only thing that separates a mediocre "Quality of Earnings" report from a deal-saving insight. With the backing of H&F, Baker Tilly has been on an absolute tear, gobbling up smaller firms like Berkowitz Pollack Brant and Sockeye. They aren't just collecting badges; they are buying specialized expertise in things like Sage Intacct and regional tax nuances that the "Big Four" often overlook because they’re too busy chasing Fortune 100 whales.
The 2026 Mega-Merger with Moss Adams
If the H&F deal was the spark, the merger with Moss Adams is the explosion. As of January 1, 2026, these two giants have officially united under the Baker Tilly name.
Eric Miles, formerly of Moss Adams, has taken the helm as CEO. This isn't just a name change on a building. It creates a coast-to-coast powerhouse specifically designed to serve the middle market. You know, the companies that are too big for the local guy but tired of being a "small account" at PwC or Deloitte.
The strategy is basically a "buy and build" play on a massive scale. By combining forces, they now have the "go-to-market" strength that rival firms are frankly scrambling to match.
How Baker Tilly Private Equity Services Actually Work
If you are on the "private equity" side of the fence—maybe you're a GP at a mid-market fund—you aren't looking for a tax return. You're looking for an edge.
1. The Transaction Life Cycle
Baker Tilly doesn't just show up for the closing dinner. They've built a "cradle-to-grave" model for deals.
- Pre-Transaction: They do the heavy lifting on financial due diligence (QoE) and "Quality of Strategy" (QoS). This isn't just checking boxes; it’s asking if the target company’s customer base is actually going to stick around after the founder leaves.
- The First 100 Days: This is where most deals fail. Baker Tilly’s "Integration Management Office" (IMO) steps in to handle the messy stuff—HR benefits integration, cybersecurity reviews, and getting the ERP systems to actually talk to each other.
- Exit Readiness: They start preparing portfolio companies for sale years before the actual exit. If the books aren't clean, you lose money. It’s that simple.
2. The "Office of the CFO" Support
Private equity firms love to lean out their portfolio companies. Often, the CFO of a $50 million company is overwhelmed. Baker Tilly provides "interim CFO" services and "digital transformation" consulting to fill those gaps.
They use tools like SaaS Intelligence (powered by Sage Intacct) to give funds real-time visibility into their portfolio's performance. No more waiting three weeks for a spreadsheet that might be wrong anyway.
3. Industry Specificity (The "Niche" Factor)
You can’t treat a healthcare deal like a manufacturing deal. Baker Tilly’s PE group has specialized teams for:
- Life Sciences: Navigating the 2026 regulatory forecast.
- Energy: Dealing with Inflation Reduction Act (IRA) tax credits.
- Real Estate: Handling complex REIT testing and JV compliance.
The Global Ripple Effect
It’s not just a U.S. story. The "Baker Tilly private equity" trend has gone global.
- The Netherlands: Inflexion (a European PE firm) took a minority stake in Baker Tilly Netherlands to fund their own "buy and build" strategy.
- Germany: As of late 2025/early 2026, the German arm has been exploring similar external investment options.
The message is clear: the old partnership model, where partners slowly save up capital over 30 years, is dying. Private equity provides the "rocket fuel" needed to invest in AI, cybersecurity, and global expansion now, not in a decade.
What Most People Get Wrong
There’s a common fear that PE investment ruins the culture of professional firms. People think it becomes a "grind-fest" focused only on the next quarter.
Honestly, it’s often the opposite. Without the capital from H&F, Baker Tilly couldn't have pulled off the Moss Adams merger. They couldn't have invested in the high-end AI tools that automate the boring stuff, allowing their staff to actually do "advisory" work instead of data entry.
Jeff Ferro, the outgoing CEO, has been vocal about this. He argues that the "equity component" is way more attractive to young talent than the old-school "deferred compensation" plans. If you want the best CPAs, you have to offer them a piece of the pie that actually grows.
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Actionable Next Steps for Business Leaders
If you are a private equity fund manager or a portfolio company executive, here is how you should actually use this information:
- Audit Your "Deal Readiness": Don't wait for a LOI (Letter of Intent) to start your sell-side diligence. Use a firm like Baker Tilly to run a "pre-audit" six months out to find the skeletons in the closet before the buyer does.
- Leverage Tax Credits: With the 2026 tax landscape shifting, especially around energy and R&D, make sure your advisors are looking at "cash-positive" tax strategies, not just compliance.
- Evaluate Your Tech Stack: If your portfolio companies are still running on manual spreadsheets, you are leaving EBITDA on the table. Ask about their digital transformation playbooks.
- Think Beyond the Audit: If you're still using your accounting firm only for an annual audit, you're missing 80% of the value. Look into their "Value Creation" services to see where you can squeeze an extra 1-2x on your exit multiple.
The reality is that Baker Tilly private equity isn't just a business headline. It’s a sign that the middle market is growing up. The "big boys" are no longer the only ones with access to massive capital and sophisticated advisory tools. And that’s probably a good thing for everyone—except maybe the competitors who stayed small.