AAB has a new majority owner, with Goldman Sachs acquiring the professional services firm from August Equity. The deal will enable AAB to drive its next chapter of growth in the UK and Ireland.
AAB first took on backing from private equity in 2021, when August Equity took up a stake in the Scottish-origin consulting and accounting firm. Since then, the firm has experienced exceptional expansion under August Equity’s partnership by tripling in size, completing 16 strategic acquisitions – including deals for Magus Wealth, Ormsby & Rhodes, and French Duncan – broadening its footprint across the UK and Ireland while growing the team headcount to over 1,000 people.
“Our partnership with August Equity has been transformational. Their investment and strategic support enabled us to accelerate our growth journey, invest in talent and technology, and expand the range of services we offer to clients,” said Emma Lancaster, chief executive at AAB.
Four years into its partnership, August Equity has now sold its stake to Goldman Sachs, led by its Alternatives division. Terms and conditions of the deal have not been disclosed.
Lancaster: “As we welcome our new private equity partner, we remain focused on delivering long-term value to our clients and our team while accelerating our growth strategy with exceptional backing.”
Swapping private equity hands
Speaking on the deal, Kishan Chotai, partner at August Equity, said, “It has been a pleasure to work with the outstanding team at AAB and support the leadership team and wider business over the last few years. Together, we have delivered a strong and sustainable growth strategy that has positioned AAB as a major force in the UK’s professional services market.”
August Equity will leave AAB in a strong position, having become a £100 million revenue firm in January 2025. Looking ahead, capital from Goldman Sachs will now go towards building on that momentum, with increased “investment in technology, AI and automation,” according to a release from the firm.
Jose Barreto, partner at Goldman Sachs, who will now support AAB’s continued development, stated, “We are delighted to invest in AAB at this hugely exciting stage in its evolution. As a Top 25 accounting firm in the UK, we see AAB going from strength to strength and fast becoming a leading provider of professional services to the UK and Irish mid-market.”
Dealmakers
AAB and August Equity were advised by William Blair and Alantra (Corporate Finance), OC&C Strategy Consultants (Commercial), PwC (Financial & Tax) and Addleshaw Goddard (Legal). Goldman Sachs was advised on the transaction by Houlihan Lokey (M&A), Linklaters (Legal), EY-Parthenon (Commercial), and EY (Financial & Tax).
Amid a difficult moment for private equity firms, higher interest rates and macroeconomic volatility are dampening deal activity across the economy. Despite muted results, the professional services sector is bucking this trend – and is still attracting private equity interest.
Other recent deals in the space include Cinven purchasing a majority stake in Grant Thornton in November, and Smith & Williamson receiving a £700 million investment from Apax Partners in the same month.