MHA eyes London AIM listing with ambitious growth plans

MHA, one of the UK’s fastest-growing accountancy firms, has announced plans to list on AIM, the London Stock Exchange’s growth market, with a fundraising target of up to £125 million.

The move positions the firm for further expansion through strategic acquisitions and investment in technology, particularly artificial intelligence.

MHA, the UK member firm of Baker Tilly International, currently ranks as the country’s 13th-largest accountancy firm by revenue. The firm has set its sights on breaking into the top 10, targeting annual revenues of more than £500 million in the medium term.

A significant part of this growth strategy hinges on acquisitions—most notably its 2024 purchase of Moore and Smalley, a firm with £30.4 million in revenue that brought 400 new employees into the MHA fold.

MHA’s leadership believes listing on AIM will provide the necessary platform to strengthen its position in a consolidating industry, where regulatory pressures and a shrinking public company audit market are creating opportunities for well-capitalized firms to gain market share.

“The IPO represents the next stage in our evolution, creating a platform for further expansion while preserving the values and approach that have underpinned our success to date,” said Managing Partner and Group Chairman Rakesh Shaunak.

“With demand for high-quality advisory services increasing, we believe we are well positioned to strengthen our market position.”

MHA has built a track record of consistent revenue growth, achieving a compound annual growth rate of 13.7% over the past decade. In fiscal 2024, the firm reported revenue of £154 million and EBITDA of £61.6 million, with 87% of its revenue recurring.

Regulatory changes have also played into MHA’s expansion. As financial reporting standards become more complex and major firms exit the public audit market, mid-tier firms like MHA are finding new opportunities.

Over the past five years, MHA has increased its fees from its top 10 clients by 224% as regulatory and compliance needs grow.

The firm’s £125 million fundraising effort will be split between a placing of ordinary shares and a retail offering via the BookBuild platform, with the retail component expected to raise up to £6 million.

Cavendish Capital Markets is acting as the company’s nominated adviser, bookrunner, and broker.

A portion of the capital will be used to invest in AI-driven efficiencies and additional staff hires, as well as to fund further acquisitions. The firm also plans to use proceeds to repay Loan Notes held by retiring partners.

With the IPO, MHA also aims to offer equity participation to future partners and leaders, aligning with its strategy of incentivizing top talent.

The firm believes this structure will help drive sustainable growth and innovation while reinforcing its ability to attract new business.

The timeline for MHA’s AIM admission remains fluid, but the firm is expected to move forward with the listing in the coming weeks.

If successful, the IPO could mark a significant milestone in the firm’s evolution and provide the capital needed to accelerate its ambitious expansion plans.