Baker Tilly, a prominent advisory, tax, and assurance firm based in the United States, has entered into discussions to acquire its local competitor Moss Adams in a deal reportedly exceeding $2 billion. According to a recent article published by the Financial Times, which cited unnamed sources familiar with the matter, this acquisition could significantly reshape the landscape of the accounting and consulting sectors.

Founded in Chicago, Baker Tilly recently sold a majority stake of its business to a private equity consortium led by the investment firm Hellman & Friedman in February 2024. This strategic move has allowed Baker Tilly to accelerate its acquisition strategy, aiming to enhance its market share in a rapidly consolidating industry that has seen a flurry of mergers and acquisitions in recent years.

With the potential addition of Seattle-based Moss Adams, Baker Tilly's annual revenues could rise to over $3 billion. This would position Baker Tilly as the second-largest accounting firm in the United States, surpassing all but RSM when it comes to size among non-Big Four firms.

The merger is being framed as the creation of a powerhouse for the middle market, indicating a focus on serving mid-sized businesses that are often underserved by larger firms. However, it is important to note that the deal has yet to be finalized, as a source indicated that discussions are still ongoing.

The anticipated sale is expected to yield substantial returns for the more than 400 partners at Moss Adams, who may benefit significantly from the acquisition. Over the last four years, there has been a notable trend among the top 30 firms, with more than one-third opting to move away from the traditional partnership model in favor of seeking outside capital for growth.

Private equity investors are increasingly attracted to firms like Baker Tilly due to their stable revenue streams generated from audit and tax services. There is considerable potential for transforming these large firms into platform companies, enabling them to acquire smaller competitors while achieving operational efficiencies through consolidation.

As of now, Moss Adams has declined to comment publicly on the ongoing discussions; however, Baker Tilly has expressed its commitment to transparency regarding its strategic intentions, stating: We have been transparent about our strategy to grow our organisation through strategic mergers and that the firm is continually exploring opportunities with respected firms that align with our growth expectations.

The surge in mergers and acquisitions has prompted many mid-tier partnerships to deliberate whether to pursue high-value acquisitions or consider selling to larger rivals. The potential merger with Baker Tilly not only promises to enhance Moss Adams' scale within the United States but also provides access to Baker Tillys extensive global network of sister firms, which operate in 143 different territories.

This is especially crucial as small and medium-sized businesses increasingly expand their operations internationally; US accounting firms are responding by fortifying their global networks to facilitate seamless cross-border services.

Earlier this year, in March 2025, Baker Tilly solidified its growth strategy by acquiring Invoke Tax Partners, a firm specializing in state and local tax advisory based in Dallas, Texas. This acquisition further illustrates Baker Tilly's commitment to expanding its service offerings and market reach.

The article Baker Tilly reportedly weighing acquisition of Moss Adams was originally created and published by International Accounting Bulletin, a brand owned by GlobalData.