Key facts
- Blick Rothenberg was the first major UK accountancy firm to receive private equity investment in July 2016.
- CEO Nimesh Shah claims the firm's deal with HgCapital sparked a trend of private equity investment in the sector.
- The firm's revenue has increased six to seven times since receiving private equity funding.
- Blick Rothenberg has made several acquisitions since 2017, focusing on cultural integration.
- Shah believes the traditional accountancy partnership model is outdated and corporate governance is essential for longevity.
- AI is seen as an existential threat that could commoditize accounting services.
Nimesh Shah, CEO of Blick Rothenberg, has claimed that his firm's decision to accept private equity investment a decade ago initiated a significant trend within the UK accountancy sector. Blick Rothenberg became the first major UK accountancy firm to secure private equity backing when HgCapital invested in July 2016.
Shah described the deal as a "Super Bowl moment" and acknowledged that many were surprised at the time. He now suggests that Blick Rothenberg can be blamed for the subsequent "gold rush" of private equity investments into mid-tier accountancy firms over the past ten years. This trend has seen firms like Evelyn Partners receive substantial investment from Apax, and Grant Thornton partner with Cinven.
Currently, an estimated 20% to 30% of UK accounting firms have private equity backing, with many more open to external capital. Shah argues that the traditional partnership model in accountancy is outdated and that firms should adopt corporate governance structures for long-term value and longevity, especially given the investment required for technologies like AI.
Since the private equity investment, Blick Rothenberg's revenues have reportedly increased six to sevenfold, with half of this growth attributed to inorganic expansion through acquisitions. The firm reported a turnover of £83.62 million for the financial year ending June 30, 2025. However, Shah admitted that the firm made "a tonne of mistakes" in its M&A strategy, particularly concerning cultural and people integration, emphasizing the need for careful selection of acquisition targets and investors.
Despite the increasing private equity involvement, some firms remain hesitant due to concerns about maintaining their culture. Shah stressed the importance of choosing investors carefully, highlighting HgCapital as a "good investor," and maintaining firm culture as a "red line," even to the extent of "sacking clients" who are not respectful to staff.
Looking ahead, Shah views AI as an existential threat to smaller accounting firms, predicting that tech startups will soon commoditize core accounting services through affordable subscription models.