Overview
Private equity investment has become a popular trend in the UK accountancy sector.
A significant minority shareholding in a Midlands-headquartered (UK) accountancy firm has been acquired by Palatine, as reported by Insider Media.
BK Plus, the accountancy firm, was founded in February 2021 by David Baldwin and Shaun Knight, former directors of the accountancy group Baldwins.
The firm has established a strong presence in the UK with over 10 offices and almost 300 staff, having completed 12 acquisitions to date.
BK Plus focuses on providing high-quality professional services to the SME sector, delivering locally, to local businesses, by local people with the support of the wider infrastructure. The firm’s growth strategy is based on the acquisition of like-minded firms across the country, with a significant pipeline of opportunity.
Palatine’s acquisition of BK Plus is a testament to the unprecedented opportunity within the accounting sector to acquire with like-minded firms across the country. Localness is the key to the core principles of BK Plus, which mirrors Palatine’s structure. The partnership is expected to provide the support required to existing and new clients, particularly in the SME market.
Mike Ward, with a wealth of experience in the professional services sector, has been appointed as chairman of BK Plus as part of the transaction. Ward’s expertise in buy and build strategies, having been CEO of Gateley PLC, is expected to contribute to the firm’s growth strategy.
The transaction was advised by RSM (tax), Cortus (FDD), RPL (CDD), Partners& (insurance), Cyberfort (cybersecurity), Gateley (legals), and Fluid IT (ITDD). The management team and staff of BK Plus played a significant role in achieving the firm’s growth to date.
Overall, private equity investment has become a parallel movement in the UK accountancy sector. The trend is expected to accelerate, particularly with a recession looming, inflation rising, and a generally uncertain outlook for businesses and their accountants, as reported by AAT Comment. Private equity firms are buying accountancy firms to take advantage of the significant pipeline of opportunity in the UK market, particularly in the SME sector.
