SKS Business Services unveils £48m acquisition funding

SKS Business Services has announced that it has received £48m funding from investment company Kartesia to support further acquisitions and the development of SKS’s automation systems, including a full financing package of debt and equity.

Over the past five years, the firm’s fee income has increased from £3.5m to £18m in 2021 (415%), and the financing will be used to continue further integrating larger high street accountancy practices over the next two to three years. SKS said this will typically, but not exclusively, include firms with £1-£10m turnover.

The firm has actively pursued a buy-and-build strategy, acquiring and integrating over 14 UK accountancy and two insolvency practices over the last eight years, under the stewardship of founder and CEO Sanjay Swarup, together with a four person management team.

Founded in 2007, SKS provides accountancy, tax and finance services to over 12,000 UK-based small and medium-sized businesses. The mid-sized accountancy and tax firm was advised by corporate finance advisor Clearwater International on the funding.

Sanjay Swarup, CEO and founder of SKS Business Services, said: “SKS welcomes Kartesia both as a shareholder and a debt partner. The new financing will enable us to continue our decade-long buy and build approach to rapidly and successfully grow further in the UK accountancy market.

“Many high street accountancy firms have realised that they need to follow the large firms and have routine work processed overseas competently. SKS delivers this, and already we have a good pipeline of further mergers in place with practices looking to end their recruitment crisis.”

Guillermo Ferre, director at Kartesia, added: “Accountancy and tax services is a resilient market, and we are very excited to support Sanjay and his team on the consolidation of the space while creating a leading platform capable of offering a broad portfolio of services to its customers.”