EXCLUSIVE: Hike in income and profits driven by private equity funded M&A triggers fundamental shift in Top 75 Firms as revenue exceeds £24bn for the first time despite Big Four growth flatlining. Philip Smith and Sara White analyse the latest trends, plus exclusive Top 75 league tables
While private equity investment is fuelling rapid expansion among mid-tier accountancy firms, the UK’s largest practices are entering a more subdued phase of growth. The contrast between the two ends of the market has become increasingly clear over the past year. Large firms continue to dominate the profession, but the momentum has shifted towards mid-tier practices, many of which are backed by private equity and pursuing aggressive acquisition strategies.
In this year’s exclusive Business & Accountancy Daily Top 75 Firms survey of the leading UK accountancy practices, the sector has continued its more than a decade bull run of fee income growth. In the latest survey, the Top 75 reported £24.13bn in fees, up 5% on the previous year (£22.99bn). Of the two thirds of firms reporting profit figures, most saw an increase, with the 47 firms seeing an average increase of 10%.
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