UK accountancy firm MHA has agreed to acquire Baker Tilly's operations in Greece and Cyprus for up to €24 million, marking a significant step in its post-listing expansion strategy. The deal comprises €6.5 million in cash and €17.5 million in shares, with 10% of the purchase price allocated to employees of the acquired unit.

Baker Tilly South East Europe, the entity being acquired, employs nearly 400 staff and reported revenues of €19.4 million with a pre-tax profit of €2.5 million in 2024. This acquisition aligns with MHA's commitment to growth through cross-border mergers and reflects the broader trend of consolidation in the accountancy sector, driven by increasing private equity interest.

MHA, a top-20 UK accountancy firm and the UK and Ireland member of the Baker Tilly International network, listed on London's AIM in April 2025. This move marked a departure from the traditional partner-owned model in the accountancy sector. In the fiscal year ending March 31, 2024, MHA reported revenues of £180 million, a 27% increase from the previous year, with audit and tax services being the main drivers of growth.

The accountancy sector has been experiencing a trend of consolidation, driven by increasing private equity interest. For instance, Baker Tilly's US arm sold a majority stake to a private equity consortium in 2024 and announced a merger with Moss Adams in April 2025, creating America's sixth-largest accounting firm by revenue.

MHA's acquisition of Baker Tilly South East Europe is expected to have several implications:
- Employment: The deal includes allocating 10% of the purchase price to employees of the acquired unit, potentially boosting morale and retention.

• Market Position: The acquisition strengthens MHA's presence in the South East European market, enhancing its ability to serve clients across the region.

• Industry Consolidation: This move reflects the ongoing consolidation trend in the accountancy sector, which may lead to increased competition and innovation.

Geoff Barnes, MHA's chair, emphasized that strategic mergers and acquisitions are "a key component" of the firm's growth plan. Following news of the acquisition, MHA's shares rose 1.2%, valuing the firm at £280 million.

This acquisition underscores MHA's commitment to expanding its international footprint and enhancing its service offerings through strategic mergers, positioning the firm for continued growth in the evolving accountancy landscape.