Stückmann Podcast Episode 22: Private Equity in the Professions of Auditors, Tax Advisers and Lawyers
In this episode of the HLB Stückmann Podcast, Alexander Kirchner, Managing Partner at HLB Stückmann, and Felix Menze, insurance agency Menze & Menze in Bielefeld, talk about the role of private equity investors in the professions. Both discuss which opportunities and risks arise from new investment models and how firms can position themselves in this field of tension between tradition and transformation.
Topics from the podcast:
Private Equity as a New Phenomenon in the Professions
For a long time, private equity was not a topic in the world of auditors, tax advisers and lawyers. Equity stakes were usually agreed only between professionals in order to safeguard structures or to enable growth. In recent months, however, reports have increased about investors specifically entering larger firms. For many, this is a completely new impulse – associated with the question of whether it is an opportunity or a threat.
Opportunities: Capital and Professionalisation
Private equity does not necessarily mean external control. Rather, it can enable firms to obtain urgently needed capital for investments in structures, digitalisation and administration. Especially in a market that suffers from succession problems and a shortage of skilled professionals, larger networks supported by investors can work more efficiently and stabilise smaller units. For older professionals without successors, the entry of investors can also allow an orderly transition into retirement.
Technological Developments as a Driver
Many big players in the market justify investor participation with the aim of becoming “state of the art” – in particular through the use of artificial intelligence and new software solutions. While international large firms develop their own technologies, mid-sized firms are dependent on external providers. Private equity can help to finance these investments, even if not every argument holds true in practice. At the same time, it becomes clear: in many firms there is a considerable need to catch up, especially in the field of digitalisation.
Regulatory Framework and Limitations
An important reference point is professional law: in principle, only qualified professionals are allowed to participate in tax consultancy and audit firms. The ECJ judgement from the end of 2024 also confirmed the prohibition of outside ownership in law firms. Nevertheless, international constructions – for example via holding companies in countries without such a prohibition – are creating ways of involving private equity indirectly. This shifts the legal boundaries, which brings both supporters and critics onto the scene.
Risks: Independence and Conflicts of Interest
At the same time, the question of independence arises. When private equity firms exert influence on practices through chains of shareholdings, there is a danger of conflicts of interest – in particular when an investor is also involved in client companies. The use of centrally prescribed software or services in which investors hold a stake also raises questions about quality, liability and possible influence. Thus, safeguarding independence and professional ethics comes into focus.
Outlook: Between Caution and New Beginnings
So far, there are few practical examples by which the consequences of private equity in the professions could be conclusively assessed. From 2026 at the latest, when the first transparency reports are published, it will become apparent how strong the influence really is. What is clear, however, is that the professions will closely follow developments – and possibly discuss stricter legal regulations. Whether private equity will ultimately be perceived as an opportunity for modernisation or as a danger to independence remains a central question for the coming years.
