Xeinadin sale collapses as investor appetite cools

Xeinadin has reportedly paused plans for a potential sale after its private equity backer Exponent failed to attract offers at the level it was seeking.

The Financial Times reported that Exponent – which invested in the accountancy group roughly four years ago – explored an exit but did not receive bids that met its target valuation, said to be above £1bn. The newspaper added that the process was run with support from advisers at Evercore.

The move comes after a sustained period of private equity interest in mid-market accountancy and advisory firms, where investors have been backing consolidation strategies designed to build scale and improve margins. However, the FT suggested some buyers are now taking a more cautious view on pricing in the sector.

Xeinadin traces its origins to 2019, when a as many as 100 independent practices were brought together into a single group. It has continued to expand since then and now has a sizeable footprint across the UK and Ireland, with more than 130 locations and around 2,500 staff.

The FT said the company drew interest, but ultimately decided not to proceed with a transaction at this stage.

A spokesperson for Xeinadin said: “While the process generated strong engagement and multiple expressions of interest, the board concluded it was simply too early to transact given the clear opportunity to deliver further value over the next few years.

“Feedback recognised Xeinadin as a high-quality, well-positioned consolidator that has grown revenue by 35% p.a. over the last three years, and that it has integrated practice management, cybersecurity and compliance across its business to support its continued growth.”

They added: “It is not our policy to comment on rumours but we can confirm there are no plans to change Xeinadin’s ownership structure or investment approach. The business continues to have the full backing of its principal shareholder Exponent.”

Exponent has been approached for comment.