Bridgepoint and Cinven have entered the lineup of private equity firms considering bids for Grant Thornton, the UK’s sixth-largest accountancy firm, which is commencing a sale process next month.
According to insiders, these private equity heavyweights are examining Grant Thornton UK, which aims to sell a majority stake to external investors.
Rothschild, the bank handling the sale, has been advocating for a 60 percent stake to be sold to private equity. Current employees are expected to retain the remaining stake to incentivize partners to remain at the firm.
Recently, it was revealed that CVC, the private equity firm owning Spanish football’s La Liga, is interested in acquiring a stake in Grant Thornton. KKR, another private equity competitor, has also considered a bid in recent weeks.
In the previous year, Grant Thornton reported revenues of £654 million, marking a 7 percent increase from the year before. Based on historical profit multiples and private equity sources, the 5,500-employee firm could be valued at approximately £1.5 billion.
Grant Thornton UK is looking to follow the footsteps of its US counterpart, which sold a 60 percent stake to New Mountain Capital earlier this year.
This move is part of a broader trend, with several accounting firms inviting private equity firms to acquire stakes. In February, Baker Tilly’s US arm agreed to sell a majority stake to Hellman & Friedman and Valeas in a $1 billion deal.
Traditionally, accountancy firms operate as semi-autonomous partnerships, with growth investments being funded internally, reducing partner payouts. Smaller firms have recently sought external funding to alleviate investment burdens.
Although both Cinven and Bridgepoint have experience acquiring professional services businesses, neither has acquired an accountancy firm to date. Bridgepoint previously owned environmental consultancy ERM, selling it in 2011, while Cinven acquired a majority stake in True Potential in 2021, valuing the Newcastle-based wealth management firm at up to £2 billion.
No comments have been made by Bridgepoint, Cinven, or Grant Thornton.