What's Happening?
MHA, a UK-wide network of independent accountants and business advisers, has completed the acquisition of Baker Tilly South-East Europe (BTSEE) for €24 million. This acquisition includes more than 400 professionals across seven offices in Cyprus, Greece, and the wider South-East Europe region. BTSEE is a leading professional services firm offering audit, tax, advisory, legal, and corporate services, with reported revenues of €19.4 million. The acquisition aligns with MHA's strategy to expand its international footprint, as stated during its IPO. MHA, part of the Baker Tilly International network, aims to enhance its presence in Continental Europe through this deal.
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Why It's Important?
The acquisition of BTSEE by MHA is significant as it marks MHA's first major expansion as a listed business, following its flotation on the London Stock Exchange's Alternative Investment Market. This move is expected to boost MHA's business amidst a sluggish UK consulting market, providing a strategic presence in key European locations. The deal is anticipated to be earnings enhancing within the first full financial year, offering MHA a competitive edge in the professional services sector. The expansion could benefit MHA by increasing its market share and diversifying its service offerings, potentially leading to increased revenue and growth opportunities.
What's Next?
Following the acquisition, MHA plans to focus on expanding its existing work with financial services companies and public interest entities in the region. Marios A Klitou, the newly appointed chair of BTSEE, indicated that further developments in service scope and physical footprint in Cyprus and Greece are expected. MHA's strategy may involve integrating other members of the Baker Tilly International Network into its group, should opportunities arise. This expansion could lead to further consolidation within the network, enhancing MHA's capabilities and market reach.
Beyond the Headlines
The acquisition reflects a broader trend of consolidation within the professional services industry, as firms seek to strengthen their international presence and service offerings. This move by MHA could set a precedent for other firms within the Baker Tilly International Network to pursue similar expansions, potentially reshaping the landscape of professional services in Europe. The deal also highlights the importance of strategic partnerships and mergers in achieving growth and competitive advantage in a challenging market environment.
