Private equity rivals are struggling — ‘we’re really well positioned’

Wednesday marks one year since the UK and Ireland’s arm of Baker Tilly International, MHA, rang the bell at the London Stock Exchange.

The advisory group didn’t pick an ideal time to list. Though it seems like a lifetime ago, the markets were also riddled with uncertainty.

Weeks before MHA went public, Trump had his ‘Liberation Day’ on 2 April, the day he launched his tariff war against the world, sending shock waves through the global economy.

But MHA soldiered on with its plan to launch its IPO.

When the firm announced its plans to float on the alternative investment market (AIM), it targeted a £350m valuation and aimed to raise £125m; however, it ultimately raised £98m, and its valuation stood at £271m.

Since the tariff war, Trump has launched an actual war in the Middle East.

So, does MHA have any regrets going public in such fraught times?

Markets have been ‘a bit of a surprise’

Speaking to City AM, Rakesh Shaunak, chief executive of MHA, said, “We knew we were entering a goldfish bowl.”

“The market itself has been a bit of a surprise… on how fickle the market is… with things like geopolitical factors, of which the big ones recently blew up, and therefore, the fund managers’ own positions have been a bit surprising.”

“Our share price has been oscillating as well. That, I’ll be quite frank, has been surprising because we didn’t expect that much of an oscillation,” he added.

Shaunak pointed out that MHA’s core investors, the cornerstone ones, “have been very supportive, and they’ve been there because of the volatility of the market”.

MHA’s target is to generate £500m in medium-term revenue. The group reported record revenues of £224.2m for the year ending 31 March 2025, a 45 per cent increase from £154m in 2024.

A key part of the group’s growth strategy has been actively pursuing mergers and acquisitions following its IPO, including the acquisition of Baker Tilly South-East Europe in August for €24m (£20.8m) and the Dubai-based audit firm Moore Stephens for £7.4m.

MHA ‘proved to be a slow burner’ with investors

As of Monday, 13 April, the group’s share price ranged between 128.50p and 130.00p.

Dan Coatsworth, head of markets at AJ Bell, told City AM, “At its peak in February 2026, MHA had enjoyed a 75 per cent share price rise on its April 2025 IPO, which was a remarkable achievement.” He explained the group’s gains were driven by solid trading updates, decent financial results, one acquisition under its belt and another underway

“Initially failing to attract much interest, the accounting and professional services firm proved to be a slow burner and those who did put their faith in the business were richly rewarded.”

He added, “Unfortunately, the stock has given up much of its gains since February despite the absence of any news beyond sowing up an acquisition.”

“That might simply be down to profit taking among investors who enjoyed the post-IPO bump, or it might be disappointment at the lacklustre UK economic outlook which could translate into less demand for MHA’s services,” Coatsworth explained.

Shaunak said he has “no regrets at all” about listing the group, stating he is “very happy about the decision” and explaining that “morale and momentum internally is really good”.

MHA partners are locked in for four years with a five‑year clawback, as Shaunak states their focus is on value four to five years out.

Competitors in ‘stormy waters’

MHA also opted to list with its competitors and even its sister brands, choosing the private equity route for additional investment.

Shaunak pointed out that private equity is now in “stormy waters” as the “number of PE consolidators… weren’t able to flip”; additionally, the “private credit squeeze” is “beginning to impact private equity”.

He explained that when MHA chases targets, “nine times out of ten we’re pitching against private equity”, leading Shaunak to label private equity as MHA’s competitors.

“What [this] means [is] that our competition is facing a really tough time and therefore, I think we’re really well positioned, despite the [geopolitical] backdrop, especially in markets like Ireland,” he explained.

“The attractiveness of our proposition… means we just stick to our resolve that we have a very good proposition,” he added.