Minneapolis-based accounting firm Eide Bailly has agreed to sell a majority stake to private equity firm Reverence Capital Partners and co-investors in a deal valuing the business at approximately $1.8 billion (€1.66 billion), as reported by the Wall Street Journal. The transaction is one of the largest private equity investments in a US accounting firm to date and adds further momentum to a structural shift reshaping the mid-tier of the profession globally.

The Wall Street Journal reported that Eide Bailly and Reverence Capital expect the deal to close in the third quarter of 2026. The firm reported approximately $840 million (€774 million) in revenue for the year ended April 2026, up from $780 million (€718 million) a year earlier, and is ranked 18th among US accounting firms.

Andy Spillum, chief operating officer at Eide Bailly, said technology changes would make things more complex for a short period and added: "Having a capital sponsor like this, with the ability to navigate and get us to the right spot quicker so we can help our clients quicker, was probably the number one driver." He said he expects the firm's revenue to double within three to four years as it expands its capabilities and operations.

Eide Bailly specialises in serving middle-market businesses across audit, tax and consulting services. The firm operates approximately 50 offices, concentrated in the western United States, and employs more than 3,500 people including more than 400 partners. It hired BMO Capital Markets to explore a possible outside investment late last year.

To comply with independence rules, Eide Bailly will establish an alternative practice structure whereby its non-audit business will receive the Reverence investment while its audit business will remain a licensed CPA firm. Securities and Exchange Commission and state accountancy board rules generally prohibit outside ownership of the audit function within a professional services firm.

Eide Bailly is among a small number of the largest 20 US accounting firms outside the Big Four that had not undergone a structural overhaul in recent years. Dozens of the 100 largest US accounting firms have either sold an ownership stake to private equity investors or been acquired by a firm that has done so since 2021. Most recently, Crowe agreed to sell a stake to KKR in a deal valued at nearly $3 billion (€2.76 billion) earlier this month.

Access the full report on Eide Bailly's private equity deal.