Trio of firms enlisted on Goldman-backed accounting group's £200m merger

Shoosmiths, Addleshaw Goddard and Linklaters have taken roles on the merger between private equity-backed accounting group AAB and Kreston Reeves, in a deal that creates a £200 million-plus UK professional services firm.

The transaction brings together Aberdeen-founded AAB and South East-focused Kreston Reeves, which generates more than £50 million in annual revenue and employs over 550 people across seven offices. The combined business will employ more than 1,800 people across 23 locations in the UK and Ireland.

Private equity roll-up

AAB has been one of the most active consolidators in the UK accounting market in recent years. The firm first took on private equity backing in 2021, when August Equity acquired a stake, and went on to complete more than 16 acquisitions as part of an aggressive roll-up strategy.

Last year, August exited after selling AAB to Goldman Sachs’ investment arm, bringing in a new backer to support the next phase of growth. The combination with Kreston Reeves is the group’s third deal since Goldman’s arrival.

Consolidation wave

The deal lands amid an accelerating wave of private equity-backed consolidation in the UK accounting sector.

Over the past 18 months, Cinven acquired Grant Thornton UK in a high-profile deal which enlisted Freshfields and DLA Piper, while Apax bought the professional services arm of Evelyn Partners in a deal led by Macfarlanes and A&O Shearman. US buyout house Lee Equity also took a stake in Cooper Parry at the end of 2024.

Advising

Shoosmiths advised Kreston Reeves on the transaction, with a corporate team led by partners James Foster and Simon Procter.

Addleshaw Goddard acted for AAB with a team led by Edinburgh-based corporate partner Laura Falls, supported by Sarah Dick (corporate), and Ashley Thomson and Jonathan Cakebread (regulatory). AG also advised AAB on last year’s transaction that saw Goldman take a majority stake from August Equity,

Linklaters also acted for AAB, led by London private equity partners Ben Rodham and John Tsui. The firm advised Goldman Sachs Alternatives when it bought AAB last year.