Cherry Bekaert's CEO Michelle Thompson Talks Private Equity in Accounting with LP’s Russell Shapiro

LP Partner Russell Shapiro recently sat down with Michelle Thompson, CEO of Cherry Bekaert, one of the nation’s largest accounting firms, for an in-depth look at the evolving landscape of the industry. Among other topics, the two examined the impact of Cherry Bekaert’s private equity investment, the advantages of the private equity model, what growth looks like for an accounting firm like Cherry Bekaert, and responses to common challenges of the private equity model.

00:00 Intro
00:17 Get to know Michelle Thompson, CEO at Cherry Bekaert
04:26 The Evolution of an Accounting Firm: Cherry Bekaert’s History
10:05 An Accounting Firm’s Private Equity Journey
13:16 How PE Can Attract Talent
15:21 Finding the Right PE Partner
18:38 Advantages of the PE Model
21:20 Responding to Common Challenges of the PE Model
25:40 “Selling” the PE Model to Accounting Firm Partners
28:16 PE’s Impact on Recruiting, Client Retention, and Firm Acquisitions
30:52 The Current Market for Accounting Firms
34:56 Cherry Bekaert’s Goals and Acquisition Plans
46:31 The “Sweet Spot” of Accounting Firm Acquisitions
49:14 Old M&A Model vs. New M&A Model