(qlmbusinessnews.com via news.sky.com– Thur, 17th Aug 2022) London, Uk – –
One of the most prominent figures in Britain's professional services industry is lining up private equity backing for a £1.5bn offer for the accountancy firm he co-founded.
Sky News understands that John Connolly, the former chief executive of Deloitte's UK firm, is working with TowerBrook Capital Partners and Warburg Pincus on a bid for Azets.
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City sources said he regarded Azets as “unfinished business” and was expected to front a serious offer for the company.
Hg, the private equity firm, has hired investment bankers at JP Morgan to oversee an auction of Azets, although a process is unlikely to get underway until next year.
Bankers regard a price range of between £1.2bn and £1.5bn as realistic.
Azets claims to be the largest provider of business-critical services such as accounting work, payroll and tax to small and medium-sized businesses in northern Europe.
In total, it boasts more than 100,000 SME customers.
The company trades under a number of brands, including Blick Rothenberg, which formed part of a 2016 merger that saw Hg become a shareholder in the business.
Since then, it has made a string of acquisitions to bolster its presence in several countries.
The group's rebranding under the Azets name took place in 2020.
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Preparations for a sale are taking place against a backdrop of accelerating structural change in the accountancy world, with EY proposing a global separation of its audit and consulting businesses.
Mr Connolly could not be reached for comment on Tuesday.
By Mark Kleinman
