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\t\tThe private equity-backed firm has stalled it’s \u00a31bn sale \t<\/p>\n\t\t\tMonday 25 May 2026 1:20 pm\n\t\t\t<\/p>\n
\t\tThe private equity-backed firm has stalled it’s \u00a31bn sale \t<\/p>\n
One of the UK\u2019s largest accounting firms founded by a former KPMG head has put a \u00a31bn auction on hold despite receiving a wealth of interest from investors.\u00a0<\/p>\n
Sumer, a \u2018consolidator\u2019 firm that buys majority stakes in smaller independent accounting companies, had hired advisors at boutique advisory Continuum last September to oversee a review on a potential \u00a31bn sale of its own business.\u00a0<\/p>\n
The fast-growing firm<\/a> has acquired over 34 accounting groups in just a few years since former KPMG chief operating officer Warren Mead<\/a> founded the company in 2022, following a 26-year tenure at the Big Four giant.\u00a0<\/p>\n However, the private equity-backed accounting giant has reportedly stalled the expected sale and Sumer\u2019s owner, Penta Capital Partners, is considering alternative options, according to The Times.\u00a0<\/p>\n Sumer is weighing whether to move the company into a new fund known as a \u2018continuation vehicle\u2019 which would allow investors to either cash out or reinvest their ownership stake into the new fund and provide it with resources to keep growing.\u00a0<\/p>\n Continuation vehicles let private equity firms keep assets for a prolonged period of time to boost value, but are considered controversial and hotly contested by many. <\/p>\n According to professional services giant BDO, continuation funds are \u201ca growing trend\u201d but \u201ccan present conflicts of interest, primarily due to asset transfers between funds managed by the same team.\u201d\u00a0<\/p>\n Alternatively, the firm is understood to be considering a dividend recapitalisation as another option, which would see a loan taken out to award investors without having to sell the business.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tKPMG faces staff uproar as job cuts expose communication breakdown<\/a><\/p>\n Many large private equity groups have reportedly eyed Sumer\u2019s sale, with some raising questions over the sky-high valuation, but despite this there is still a strong amount of market interest.\u00a0<\/p>\n In just over three years, the company has become the country\u2019s 12th largest accounting practice and provides services to small and medium-sized businesses rather than large corporate clients.\u00a0<\/p>\n Sumer rakes in around \u00a3300 million in annual revenues and employs roughly 3,000 people across the whole company.\u00a0<\/p>\n The sector is a shiny object for private equity <\/p>\n Private equity firms have become increasingly interested in the professional services sector<\/a>, especially the accountancy industry, over the past few years.\u00a0<\/p>\n This is driven by the promise of a predictable revenue stream and opportunities to merge smaller firms into larger companies.\u00a0<\/p>\n Private equity entity Cinven bought Grant Thornton UK<\/a> for \u00a31.5bn in December 2024, and as a result, the firm said it would hire 160 new partners over the next two years.\u00a0<\/p>\n