Q&A: Xeinadin's CEO Derry Crowley on the firm's 27th acquisition in two years

On September 30, Xeinadin announced it’s 27th acquisition within two years.

The professional service firm acquired three Haines Watts offices in the towns of Grimsby, Sunthorpe and Hessle, enhancing its footprint within the region. The purchases follows a series of acquisitions earlier in the year, including the addition of Clay Shaw Thomas and Jones Harris in the summer.

According to the firm, which ranked 18th in Accountancy Age’s 50+50 for 2023, 84% of small business owners in Yorkshire and Humber consult with their accountant at least once a month, with the average being over three times per month.

Xeinadin is focusing on this region as a thriving hub for small business growth, where business owners increasingly rely on their local accountancy firms to guide them through their business and financial challenges.  

Accountancy Age sat down with Xeinadin’s CEO, Derry Crowley, to understand how the firm approaches M&A and what it looks for in a potential partner.

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How would you summarise Xeinadin’s M&A strategy?

Xeinadin’s M&A strategy is a key driver in its journey to become a leading national accountancy firm across the UK and Ireland. Our approach is not just about growth for growth’s sake; it’s about finding partners that align with our culture, values, and long-term vision. We prioritise firms that share our ethos of exceptional client service and proactive advice, embracing the Xeinadin mindset.

What are your non-negotiables for a successful acquisition/merger?

When it comes to acquisitions or mergers, our top priority- the non-negotiable- is people. At Xeinadin, we firmly believe that success starts with having the right people who are not only skilled and driven, but are also aligned with our culture and values. We have big ambitions and we need a team in place to be a part of this.

Across 2024, the firm has gone on a bit of a ‘buying spree’ – how does Xeinadin identify potential targets for acquisition?

In 2024, Xeinadin strategically pursued acquisitions to strengthen its national presence, with a clear focus on geographic expansion. We seek to establish a presence in regions where we see strong growth opportunities and where our services can make the most impact for local businesses.

Geography alone isn’t enough, we target firms that have a superb reputation in their local markets; we’re looking for partners that are recognised for their quality of service and who have a strong, capable team.

To what extent is the changing skill set of accountants driving Xeinadin’s M&A strategy?

The changing skill set of accountants is a significant driver behind Xeinadin’s M&A strategy. The role of an accountant is no longer limited to traditional tasks, clients expect their accountants to act as trusted business advisors, offering strategic insights that help shape the future of their businesses. We’re seeking partners who embrace this expanded role and demonstrate a strong focus on business development. Expertise in accounting software and keeping up with IT trends is essential; firms that are best-in-class when it comes to digital tools are highly attractive to us because they align with Xeinadin’s forward-thinking approach to client service.

What have been some of the greatest learnings from this years’ M&A activity?

This year’s M&A activity has brought several key learnings to the forefront, one of the most important being the value of truly listening to the sellers. Every firm we’ve acquired has its own unique way of operating, and by taking the time to understand these nuances, Xeinadin has uncovered invaluable insights that have the potential to enhance how we operate.

We also encourage new joiners to get involved from day one. This allows us to immediately utilise the fresh perspectives and ideas that they bring to the table. Each acquisition is a two-way street, and by valuing the expertise and input of the businesses we acquire, we’re able to integrate more effectively and improve as a firm.

There is often a huge focus on ensuring existing employees are reassured during an M&A process – what is your approach to communicating changes to clients?

Clients are the lifeblood of our business, and ensuring they feel reassured and valued during an M&A process is a top priority for us at Xeinadin. Our approach to communicating changes is rooted in maintaining the personal, trusted relationships we’ve built over the years. Clear, proactive communications starts with reaching out to our clients directly- whether through a phone call, personalised emails, or well-timed PR announcements.

We emphasise how the acquisition will enhance the services we offer, bringing in additional expertise, expanded skill sets and access to advanced IT solutions that will ultimately improve their experience.

How important is it to get client buy-in?

Client buy-in is absolutely critical to the success of any M&A process. Without it, even the most well-executed mergers can fall short of their potential. Clients are at the core of what we do, and their trust and confidence in the firm are paramount. When clients feel informed, valued and reassured during a transition, it creates a foundation for long-term success.

Moreover, client buy-in helps preserve the personal relationships that are often at the heart of our business. Clients who trust in the firm’s direction are not just more likely to stay, but become advocates for the business.

Across the year, firms within the top 50 are focusing more and more on brand, and what this means for their practice. Xeinadin itself recently rebranded from Xeinadin Group. When you’re acquiring new businesses at such a rapid rate, how do you ensure Xeinadin’s brand is translated?

The rebrand from Xeinadin Group to Xeinadin reflects our commitment to being one Xeinadin, we are not a group of firms, we are one firm with one vision and one mission, capable of providing exceptional back-office support to our offices and colleagues.

Removing Group provides firms joining us with confidence that they will be joining a firm that is committed to innovation, client-centricity, and forward-thinking solutions, supported by an unwavering focus on maintaining a local approach. It demonstrates this approach to any firm looking to join us and highlights our expectation that any new acquisition aligns with our brand ethos, and we take a multi-faceted approach to achieve this.

A significant part of this process involves leveraging PR across the UK & Ireland and our digital footprint. We focus heavily on communicating our brand’s vision and mission, ensuring that both clients and the market understand how each acquisition strengthens our Xeinadin offering and local footprint, whilst sharing and strengthening our ethos.

It’s about storytelling—showcasing how each new acquisition enhances our ability to offer clients top-tier services and expert advice as forward thinkers and trusted advisors.

A larger number of firms are considering partnering with private equity to help them on their M&D journeys. What are you thoughts on the growing influence of PE firms on the UK accounting sector?

The growing influence of private equity in the UK accounting sector is a highly positive development, especially as it plays a crucial role in ensuring the continuity of local accountancy firms that serve small and medium-sized businesses.

Private equity provides the capital that allows these firms to invest in technology, expand their services, and ultimately enhance their offerings to local businesses. For many firms, securing PE investment is not just about growth—it’s about survival.

What is the firm’s M&A strategy for the next 12 months? Do you have milestones/targets in mind? (Do not expect you to name names, more the types of business/skillsets being sought after?)

Over the next 12 months, Xeinadin’s M&A strategy is focused on filling geographical gaps to establish a nationwide presence across the UK and Ireland. Our aim is to create a comprehensive network that allows us to better serve clients in every corner of the market.

We are actively seeking opportunities in key areas where we currently lack representation, particularly in regions with vibrant small and medium-sized business communities. By targeting firms that are well-respected locally, we can ensure that we’re integrating businesses that align with our ethos of exceptional client service and cultural fit.