Accountancy firm MHA has raised £98m in a successful AIM IPO, providing a much-needed boost to London’s junior market.
The company raised £98m at 100p, valuing the company at around £271m on listing. MHA shares were steady at 101p at the time of writing.
MHA, the 13th largest accountancy firm in the UK, has established itself as the joint fastest-growing among the top 20 firms in 2023.
The group has set an ambitious medium-term goal to break into the top 10 UK accounting and professional services businesses, with targeted annual revenues exceeding £500 million.
The firm has demonstrated a strong track record of acquisitions, most notably completing its largest deal to date in April 2024 with Moore and Smalley, which contributed £30.4 million in revenue and approximately 400 new employees.
MHA is targeting a fragmented UK accountancy market and eyes further strategic acquisitions as a listed company.
Over the past decade, MHA has recorded a compound annual revenue growth rate of 13.7%, while maintaining 87% recurring revenue in FY24, helped by an increasingly complex regulatory environment.
“Against a backdrop of rising demand for high-quality advisory services and increasing regulatory complexity, we believe we are well placed to build on the strong momentum we have established in recent years,” said Geoff Barnes, Chair of MHA
“Admission gives us the ideal platform to strengthen our market position and broaden our capabilities, enabling us to scale at pace and drive further innovation while continuing to deliver the high standards our clients expect. Importantly, it also allows us to offer equity participation to future partners and leaders, ensuring they share directly in the firm’s ongoing success.”
As the UK and Ireland representative of the Baker Tilly International Network, MHA benefits from connections to independent firms across 143 territories generating approximately $5.62bn in annual revenue, whilst maintaining its own brand identity in the UK market.