Platform or Bolt-On? Understanding PE Growth Models and What They Mean for You

Private Equity is Coming for Your Firm

The accounting industry is in play. With private equity sitting on billions, investors are pouring into the industry; deals are happening at breakneck speed, and the model that shaped your firm for decades is being rewritten in real time.

If you are a managing partner, CEO, founder, or shareholder of a middle-market CPA firm, you are on the radar. PE firms are attracted to the industry because they see an industry that, in many cases, is a ‘must have’ not a ‘nice to have’, consistent recurring revenue, and high client stickiness. They also see succession, recruiting, and competition as challenges they can help solve.

Going the PE route is attractive, particularly for firms constrained by cash flow or those with multiple partners retiring and younger partners facing years of payouts on retirement plans.

If you are looking at PE investment, the big question is: Are you a platform or a bolt-on?

That single distinction can determine everything that happens next. Your role. Your control. Your firm’s legacy. Who drives strategy and who reports to whom.

This article breaks it down. What platform and bolt-on models really mean. How private equity thinks. And the questions you need to ask before you shake hands on a deal that could redefine your future.

The interest in the accounting industry by private equity doesn’t seem to be ending any time soon. It’s time to decide which side of the table you want to sit on.

The PE Invasion of Accounting

Private equity is moving aggressively into accounting. These firms are committing capital and resources with a clear intent to reshape the industry.

Why the interest? The business model is attractive: recurring revenue, strong client retention, deep relationships, and a generational ownership shift that is opening the door to consolidation.

Rather than pursuing short-term returns, PE firms are assembling long-term, growth-focused strategies. They are building scalable, tech-enabled platforms, pushing the industry toward more advisory services (a topic of conversation in the industry for years), and they see your firm as a potential cornerstone, if the fit is right.

Recent activity makes the trend clear. Cherry Bekaert, EisnerAmper, Citrin Cooperman, and Ascend, among others have all partnered with PE and are undergoing rapid transformation.

The shift underway goes beyond growth targets. Competitive pressure is accelerating. Margins are compressing. Investment in technology is becoming essential, and workforce expectations are rising.

If your firm isn’t actively exploring these changes, others in your market certainly are.

What Is a Platform Firm?

A platform firm is the foundation of a private equity strategy: the initial investment that supports future acquisitions.

To be considered for this role, your firm needs more than solid financials. Investors look for leadership depth, operational infrastructure, brand value, market or service niches, and a proven growth trajectory. The ability to absorb other firms and scale efficiently is critical.

Think of a platform as the solid foundation upon which to build – with the necessary capital to support the growing pains.

Platform firms receive significant capital investment, along with strategic support and often new operating partners. The expectation is clear: expand, integrate, lead, and deliver on performance targets. Falling short could result in leadership changes or, at a minimum, increased pressure to deliver results.

In this model, firms often retain more influence and may keep their brand, but with that also comes the spotlight to be ‘the’ role model for future acquisitions.

Being a platform investment demands a forward-looking mindset, operational readiness, a strong, unified leadership team, and a commitment to continuous growth. For some leaders, that is an exciting challenge. For others, seemingly microscopic fissures in leadership, culture, technology, or team could become exacerbated under a spotlight.

It’s important to note that in recent transactions, PE firms have made what could seem like multiple platform investments (investing in firms of equal size). However, in every case, one firm still takes the lead and sets the precedence.

What Is a Bolt-On?

Bolt-on or add-ons are firms acquired and integrated into an existing platform, becoming part of a larger strategic vision rather than leading it.

These firms are typically smaller, niche-focused, or regionally concentrated. They join a larger organization and align with its operational structure and growth goals.

Private equity firms use bolt-ons to scale quickly. By combining multiple smaller firms, they can create efficiencies, expand market presence, and centralize core functions.

For leadership teams of bolt-on firms, post-deal life usually brings structural changes. Autonomy decreases, systems may be replaced, and strategic direction is dictated by platform leadership.

Still, bolt-ons can offer meaningful advantages. Liquidity, reduced personal risk, and a less demanding operational role can make this an appealing option for partners nearing retirement or younger partners seeking a simpler path forward.

It’s important to recognize, however, that decision-making authority shifts. Leadership teams will be part of a larger whole and must be prepared to operate within that framework. That could mean a major change in cultural norms, flexibility, and the speed at which decisions are made.

Platform vs. Bolt-On: The Real Differences

Ask yourself: Do you want to build a plan or implement someone else’s vision?

Is Your Firm Platform Material?

Not every firm is built to serve as a platform. Forcing that position without the right structure or resources can lead to poor outcomes.

Platform firms typically have:

• $20M+ in revenue*
• Strong leadership bench
• Scalable processes
• A clear geographic or industry niche
• Growth history and future runway
• Operational maturity
• Appetite for transformation

*The $20M revenue figure will vary depending on the PE firm, but it’s a useful reference point.

If your firm doesn’t meet these criteria, there’s still value in a bolt-on transaction. For many firms, it’s a clean, strategic outcome.

If your firm has the potential to be a platform, now is the time to prepare. That means building internal leadership capacity, investing in systems, aligning your team, clearly defining niches, and refining your growth strategy.

Investors are not looking to fix foundational issues. They want a firm that is ready to move forward without delay.

Culture, Clients, and Control: What’s at Stake

Private equity will change the way your firm operates.

Along with capital comes a new set of performance metrics, shorter timelines, and a different pace. Leadership teams will need to adjust to shared control and decision-making under investor oversight. Employees will face new systems and evolving expectations. Clients may seek reassurance about continuity and service quality.

Cultural alignment is often the determining factor in whether a deal succeeds. Differences in expectations, communication, and operating rhythm can cause friction if not addressed early.

Before pursuing any transaction, consider the following:

• Are the firm’s partners aligned around shared goals?
• Is the leadership team prepared to meet investor-level expectations?
• Will the firm’s culture adapt successfully to change?

Also consider your personal legacy. Are you aiming to grow and lead through the next phase, or are you preparing for a structured exit?

Clarity around your personal goals is essential. Entering a PE partnership with unrealistic expectations about continuity or autonomy often leads to disappointment, not to mention increased stress.

Five Questions Every Firm Leader Should Be Asking

1. Are we a platform, a bolt-on, or better off independent?
2. What is our ideal outcome: growth, exit, succession?
3. Can our leadership team operate under private equity expectations?
4. How will a deal impact our culture, clients, talent, and decisionmaking?
5. Do we have the right advisors to guide us through this process?

Deals move fast. You need clarity before the term sheet hits the table.

Final Word: Choose Your Path Before It’s Chosen for You

Private equity’s role in the accounting industry continues to grow. Firms that fail to define their position risk losing strategic control over their future.

Whether you aim to take the helm as a platform, contribute as a bolt-on, or remain independent, the decision belongs to you, but the time to make it is now.

This is more than a deal. It’s a defining moment for your firm’s future.

If you haven’t started this conversation internally, now is the time. If you’re unsure how to begin, bring in people who can guide you with objectivity, strategic clarity, and industry expertise. Internal conversations without outside perspectives often lead to myopic or group thinking and, ultimately, disappointment.

Need help navigating private equity conversations?

Hollinden works with firms and leadership to position for what’s next, whether that’s organic, acquired, or PE investment growth. Contact us today.