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Sumer, an accounting group co-founded by former KPMG UK chief operating officer Warren Mead, is reportedly exploring a potential sale with an estimated valuation of about £1bn, according to the Financial Times.
People familiar with the matter told the outlet that the firm, backed by private equity investor Penta Capital, has appointed advisory boutique Continuum to conduct a strategic review that could result in a full sale, according to people familiar with the process.
Sumer was launched in 2022 and has since acquired 34 small accountancy practices across the UK.
The business is one of several consolidators using private equity funding to buy up smaller firms, and allows acquired practices to retain their branding while centralising functions such as finance, compliance and human resources.
The FT reported that this could result in a lower valuation for Sumer. Typical valuations for accountancy firms range between 14 and 15 times earnings before interest, tax, depreciation and amortisation.
Several people told the FT that Sumer’s less integrated model could lower its valuation to about £700m.
However, some sources close to Sumer said its model is integrated, with shared back-office functions despite firms keeping separate branding.
Sumer has been contacted for comment.
