Sumer, the UK accounting consolidator based lower than three years in the past by former KPMG UK chief working officer Warren Mead, is exploring a possible sale with a goal valuation of round £1bn, underscoring the rising investor urge for food within the skilled companies sector.
The agency has engaged boutique adviser Continuum to supervise a strategic evaluate, which may culminate in a full sale of the enterprise, in keeping with sources conversant in the matter.
Sumer, backed by non-public fairness group Penta Capital, has accomplished 34 acquisitions since 2023, shopping for stakes in small accountancy practices throughout the UK.
The group employs roughly 2,400 folks throughout 65 places of work, providing auditing, tax advisory, company finance, and different skilled companies, making it the thirteenth largest accounting agency within the nation.
The bold valuation comes as non-public fairness curiosity in skilled companies continues to develop. Corporations are more and more comfy investing in companies with comparatively few tangible property, supplied mechanisms exist to retain key companions post-transaction.
Earlier offers within the sector, akin to Cinven’s acquisition of a majority stake in Grant Thornton UK and Apax Companions’ buy of Evelyn Companions’ skilled companies enterprise, have demonstrated the potential for multi-billion-pound valuations.
Sumer’s mannequin differs from conventional consolidators by permitting member companies to retain some operational independence whereas centralising back-office features together with finance, compliance, and human assets.
Trade observers recommend this strategy may mood investor enthusiasm, probably lowering the achievable valuation in contrast with extra totally built-in consolidators. Analysts estimate standard accountancy acquisitions sometimes command 14 to fifteen occasions earnings earlier than curiosity, tax, depreciation, and amortisation, although Sumer’s hybrid mannequin might alter this expectation nearer to £700m.
Regardless of its impartial branding strategy, sources near Sumer insist the group operates as a totally built-in community, with standardised processes and oversight throughout its member companies. The agency declined to touch upon the potential sale or valuation.
The surge of consolidator exercise displays a broader development in UK accountancy, the place non-public fairness funding has enabled speedy growth and market consolidation.
Comparable ventures, akin to Azets, based by former Deloitte world chair John Connolly in 2016, have pursued comparable methods, although Sumer’s strategy is seen as a hybrid between full integration and autonomy, interesting to smaller companies looking for progress with out ceding full management.
