Biggest Private Equity Deal in UK Accounting Firm History Completed

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Private equity firm Cinven has officially completed its acquisition of Grant Thornton UK, marking the largest-ever private equity investment in a British accountancy firm. The deal reportedly values the firm at up to £1.5 billion, and is sending waves through the professional services sector.

💷 What’s in It for the Partners and Staff?

• Partners received an average payout of £682,000 in 2024 – a 6% increase from the previous year.

• Employees below partner level will now also receive equity allocations – a major shift in firm incentives.

• A £39 million bonus pool was distributed across the firm.

📊 Financial Context

• Revenue rose 11% to £724 million, though profit margins were impacted by transaction-related costs.

• The Financial Reporting Council reviewed the deal to ensure audit independence – a key concern in PE-backed audit firms.

🔁 Shift in Capital Allocation

The acquisition has introduced a major realignment of internal incentives:

• More money to partners,

• Equity for staff who aren’t partners,

• A model that mirrors what’s already happening in US professional services firms.

This move is seen as a way to improve firm cohesion, boost retention, and align everyone behind long-term growth goals.

🌍 What Accountants Should Watch

This is part of a broader trend: private equity is entering the accounting space in Europe, and UK firms are leading the way. With Cinven now in charge, the focus will be on how Grant Thornton UK balances short-term margin pressure with long-term strategic growth.

Will this model catch on across more firms in South Africa or Namibia? Time will tell.

📰 Source: Financial Times