UK accountancy sees double deal action with Cinven and IK Partners

Two major private equity deals have been announced in the UK accountancy sector, with Cinven and IK Partners making significant investments in Grant Thornton UK LLP and Dains Accountants, respectively.

International private equity firm Cinven has agreed to acquire a majority stake in Grant Thornton UK LLP, one of the UK’s largest professional services firms, while IK Partners will take a controlling interest in Dains Accountants, a leading provider of accountancy and advisory services for small and medium-sized enterprises (SMEs).

Both deals signal a shift in the strategic priorities of the accountancy market, with a focus on consolidation, talent acquisition, and investment in key growth areas such as regulatory compliance and digital transformation.

Cinven’s Majority Stake in Grant Thornton UK

Cinven’s agreement to acquire a majority stake in Grant Thornton UK values the firm at approximately £1.5 billion, making it one of the most significant transactions in the UK professional services sector this year. Grant Thornton’s UK Partner base will retain a significant equity share, reflecting the firm’s strong collaborative ethos and commitment to its existing leadership structure. The deal is subject to partner ratification, regulatory approvals, and customary closing conditions.

Grant Thornton UK, founded in 1904, has grown into a major player in the professional services market. With over 5,500 employees and 240 partners across 20 offices, the firm provides a broad range of services, including audit, tax, and advisory support, to a diverse client base. This includes medium and large corporates, public sector organisations, and high-net-worth individuals. The firm’s role within the global Grant Thornton International Network further strengthens its position, offering clients access to expertise across 150 markets worldwide.

Cinven’s investment strategy focuses on enhancing the firm’s technological capabilities, developing talent, and expanding its service offerings to capture a greater share of the mid-market and public sector opportunities. The firm also aims to address rising client demand in key areas such as ESG, risk management, and cyber security, reflecting broader market trends.

“This investment in our business is a testament to the hard work of everyone at Grant Thornton UK and the exciting opportunity that lies ahead,” said Malcolm Gomersall, CEO of Grant Thornton UK. “Cinven’s thoughtful approach and commitment to audit quality align with our strategy to continue delivering value to our clients.”

Cinven’s extensive experience in the professional services sector includes investments in firms such as Alter Domus, Miller, and CPA Global. The private equity firm’s ability to identify growth opportunities in people-based service providers makes it well-positioned to support Grant Thornton’s next phase of development.

IK Partners’ Acquisition of Dains Accountants

In a separate development, IK Partners announced its agreement to acquire a majority stake in Dains Accountants, a UK-based firm specialising in accountancy and business advisory services for SMEs. The deal sees IK Partners succeed Horizon Capital as the majority shareholder, with Dains’ management team significantly reinvesting alongside IK. Financial terms of the transaction were not disclosed.

Dains, established in 1926, serves over 17,000 clients across the UK and Ireland. The firm has built a reputation for senior-led client relationships and high-quality service delivery, offering expertise in areas such as tax, audit, corporate finance, forensic accounting, and business recovery. Under Horizon Capital’s ownership since 2021, Dains has experienced significant growth, including ten strategic acquisitions and a workforce expansion to 765 employees.

With IK’s support, Dains plans to continue its organic growth and accelerate its acquisition strategy in a fragmented market. The partnership aims to consolidate the firm’s position as a leading provider to SMEs while enhancing its operational platform and recruitment efforts.

“Dains is a strong business with an impressive history of delivering exceptional client services and business growth year on year,” said Pete Wilson, Partner at IK Partners. “The breadth of services offered by their accountancy experts across the UK and Ireland has built an excellent reputation for Dains amongst fast-growing SMEs. With our track record in supporting similar businesses in the Business Services sector, we look forward to partnering with Richard [McNeilly, CEO of Dains] and his team in the next phase of the company’s journey.”

Richard McNeilly welcomed the investment, emphasising IK’s experience in the accounting and professional services sectors. “The team’s expertise in executing buy-and-build strategies will be crucial as we continue to consolidate the market and reinforce our position as the acquiror of choice,” he said.