Strategic Capacity: The New North Star for Accounting Firms and PE in the $10 Trillion Transition

We’re standing at a pivotal moment for accounting firms and private equity. $10 trillion in Baby Boomer-owned business wealth is set to change hands. Who is in the arena? Accounting firms and PEGs—and the winners will be you who will be those that master one thing:

Strategic Capacity.

In simple terms, Strategic Capacity is a company’s ability to grow free cash flow—predictably, sustainably, and in a way that maximizes transferable value. It’s not a buzzword. It’s the core asset class behind real value creation—and it's the opportunity traditional compliance firms and their capital partners have been waiting for.

Why Strategic Capacity Now?

Historically, CPA firms have hung their hats on audit, tax, and compliance. CAS and fractional CFO services have moved firms closer to the business, but they’re still playing defense—reporting history rather than engineering the future.

Strategic Capacity flips the model. It’s the bridge from technical advisor to business growth catalyst. It’s the secret weapon for firms looking to:

• Attract and retain higher-value clients
  
  
• Differentiate in a crowded, commoditized market
  
  
• Command advisory-level fees while driving real business outcomes like growing profits and locked-in transferable value (ask yourself: isn't this what most clients want?)

For private equity groups building platforms in the accounting space, this is your playbook. Firms with the capability—and mindset—to build Strategic Capacity for clients are uniquely positioned to grow top-line advisory revenue, improve client enterprise value, and drive repeatable success across portfolio holdings. Imagine a technology-enhanced turnkey advisory system you can fire up to deliver real impact. 

The 3 Dimensions of Strategic Capacity—And Where CPA Firms Fit In

In the CLARITY Strategic Capacity & Business Value Analysis™ framework, Strategic Capacity is made actionable across three dimensions:

1. Predictable Profits & Cash Flow
   Core accounting services anchor this dimension. But to create value, firms must go further—building recurring revenue models, increasing operational independence from key personnel, and aligning leadership around measurable outcomes. It’s where traditional CPA work ends and modern advisory begins.
   
   
2. Predictable Sustainable Growth
   Most firms don’t touch this—but they should. Co-piloting with CEOs as they build scalable sales and marketing systems, align strategic planning to execution, and innovate with confidence is how advisory becomes invaluable - irresistible. This is where CAS teams become revenue architects and fractional CFOs transform into strategic co-pilots.
   
   
3. Predictable Transferable Value
   The M&A gold mine. Helping clients become investor-ready through improved reporting, risk reduction, legal and financial hygiene, and compelling strategic narratives is no longer optional—it’s existential. Will you turn the wrenches on the business engine? Heck no. Will you have the diagnostics, the technology and Ai-driven planning, and the accountability tools to be an invaluable co-pilot? Heck yes. Every client benefits from high Strategic Capacity. And your firm guides them there you become indispensable.
   
   

Alternative Practice Structures: The Growth Engine for Strategic Advisory

Alternative Practice Structures (APS) are a catalyst, not a constraint. For forward-looking firms, APS unlocks the ability to offer value-driving advisory at scale—delivering Strategy-as-a-Service backed by deep financial acumen.

Here’s the bottom line: Firms leveraging APS to focus on Strategic Capacity will dominate advisory for the $10 trillion transition. They’ll guide businesses to become best-in-class performers, aka valuable assets. Long before the M&A prep that you may eventually lead you will guide business model evolution, and help clients increase enterprise value. Now isn't this sexier than just reporting on what's already happened?

A Private Equity Lens on Strategic Capacity

To PE firms targeting the accounting space: Strategic Capacity isn’t just a framework. It’s an underwriting tool, a growth driver, and a risk management system. Through platforms like CLARITY, you can benchmark and build portfolio value across the full range of Strategic Capacity objectively, consistently, and at scale.

Imagine deploying a value creation playbook that aligns partner firms, accelerates 100-day plans, and gives LPs clear proof of progress. That’s the power of Strategic Capacity embedded in your operating rhythm.

Final Thought: The Growth Advisor Revolution

The market doesn’t need more firms doing what’s always been done. It needs advisors and operators who make businesses worth more tomorrow than they are today. Should this be you?

Strategic Capacity is how you get there.

And for you who are ready to lead—whether you’re a managing partner or a PE operating partner—being the Growth-Driving Advisor isn’t a role. It’s your next strategic advantage. Let's roll. 

By George Sandmann, Founder & CEO of Growth-Drive and Author of
“The Growth-Driving Advisor: Proven Strategies for Leading Businesses from Stuck to Best-in-Class”, Forbes Books 2023.Get your copy.