Baker Tilly-Moss Adams Merger: A $7 Billion Play for Dominance in the Accounting Sector

The U.S. accounting industry is on the brink of a major shakeup. On April 21, 2025, Baker Tilly and Moss Adams announced their intent to finalize a $7 billion merger by early June 2025, creating the sixth-largest accounting firm in the U.S. with combined annual revenue exceeding $3 billion. This deal, the largest in the profession’s recent history, signals a bold move to consolidate regional power and global reach in a sector increasingly dominated by the Big Four (Deloitte, EY, KPMG, PwC).

The Strategic Rationale: Why This Deal Matters

The merger unites two firms with complementary strengths: Baker Tilly’s global network (53 countries, 50,000 professionals) and Hellman & Friedman-backed growth with Moss Adams’ West Coast dominance (15 California offices, 8 in Washington) and niche industry expertise (real estate, healthcare, private equity). Together, they aim to rival mid-tier rivals like BDO and CBIZ while offering clients a one-stop shop for audit, tax, and advisory services.

The $7 billion valuation reflects not just revenue but also the firms’ ambition to triple Baker Tilly’s U.S. revenue by 2030, leveraging private equity capital and geographic synergies.

The Role of Private Equity: Fueling the Fire

Baker Tilly’s merger ambitions are underpinned by its 2024 partnership with private equity giants Hellman & Friedman and Valeas Capital Partners, which provided the liquidity to acquire smaller firms like Seiler and Hancock Askew. These investors will increase their stakes in the merged entity, ensuring continued growth through acquisitions and technology investments.

The infusion of PE capital has already enabled Baker Tilly to expand its middle-market and tech-sector client base, a strategic advantage as Moss Adams brings expertise in real estate and healthcare. The combined firm’s global footprint—via Baker Tilly International’s 700 offices in 143 countries—will further attract multinational clients seeking localized service without sacrificing global scale.

Leadership and Cultural Integration: A Delicate Balancing Act

While the merger’s financial logic is clear, its success hinges on cultural alignment. Moss Adams employees have historically been wary of Baker Tilly’s reputation for “hiring retreads from other firms,” as noted in internal forums. To address this, the leadership structure will blend executives from both sides:
- Eric Miles (Moss Adams CEO) will become CEO-elect in 2026, signaling a shift toward West Coast influence.
- Jere Shawver (Baker Tilly’s audit CEO) will focus on global strategy, while Jeff Yarbrough and Dale Stensland co-lead U.S. operations.

The firms have also prioritized transparency, with town halls and leadership updates aimed at retaining talent amid the transition.

Market Impact: A New Tier of Competition

The merged entity’s $3 billion revenue surpasses BDO ($2.5B) and CBIZ ($2.8B), positioning it as the largest non-Big Four firm on the West Coast. This geographic dominance, paired with Baker Tilly’s global network, could lure clients away from the Big Four in industries like tech and private equity.

However, challenges remain. While the merger avoids antitrust scrutiny, regulatory hurdles could arise in states where Moss Adams operates under strict licensing rules. Additionally, the firms must integrate diverse IT systems and audit practices, a process that could strain operations in the short term.

Conclusion: A Bold Bet on the Future of Accounting

The Baker Tilly-Moss Adams merger is a watershed moment for the U.S. accounting industry. With $7 billion in valuation, $3 billion in revenue, and a 53-country reach, the combined firm is well-positioned to capitalize on two trends:
1. Consolidation: The top 10 U.S. accounting firms now account for 70% of the market, up from 50% in 2020.
2. Private Equity Influence: Firms backed by PE (like this merger) now control $2 trillion in global advisory services, per KPMG’s 2025 report.

While cultural and operational risks linger, the merger’s strategic advantages—geographic scale, specialized expertise, and PE-driven growth—make it a compelling investment. For clients, it promises a mid-tier alternative to the Big Four; for investors, it’s a bet on a sector reshaped by consolidation and capital.

As the June 2025 deadline approaches, this deal will set the stage for how the accounting industry evolves in the decade ahead.