AAB, a UK-based accountancy firm backed by private equity, has agreed to merge with Ormsby & Rhodes, one of the longest-established firms in the Republic, as it looks to strengthen its position on the island of Ireland.
Ormsby & Rhodes was established in 1911 and plans to retain its name as all 10 partners commit to remain with the business. It has 42 employees in total and currently generates more than €7 million a year in revenue from audit, accounting, tax, payroll, company secretarial and business advisory support services to a wide range of clients in Ireland.
AAB, which is backed by London private equity firm August Equity, merged with Northern Ireland-based FPM in 2022 and is understood to have its eye on further deals to build its presence on the island.
“This strategic move follows on from our first successful investment in Ireland in 2022 and will bolster our international reach through growth opportunities across Europe,” said Emma Lancaster, chief executive of AAB.
The small- to mid-tier Irish accounting sector has seen a surge in deal making in the past two years as overseas firms, often backed by private equity money, seek to tap into the EU’s fastest growing economy and the European base for a host of global tech and pharmaceutical groups.
The attraction of private equity to the sector lies in the fact that much of accounting revenue is recurring, which makes it easier for private equity firms to fund borrowings in takeover transactions.
For small domestic practices, the burdens of mounting regulation and compliance, technology costs and succession planning are also driving consolidation conversations in the sector.
Is Ireland’s planning system broken?
ETL Global, the German-based accounting group, entered the Irish market in early 2023 by acquiring 51 per cent of the Noone Casey practice in Dublin and has followed up with other deals.
London-based Azets also purchased Baker Tilly Ireland the same year before the firm went on to merge with rival PKF O’Connor, Leddy & Holmes in 2024.
Dains, a UK accountancy group backed by investment firm Horizons, acquired McInerney Saunders Chartered Accountants in Dublin early last year and has given the Irish firm a mandate to find follow-on deals.
Last week, Moore Ireland, the Cork-headquartered accountancy firm backed by private equity, said it had merged with Galway-based DHKN. That deal marks the first big strategic move by Moore Ireland following purchase by UK-based Moore Kingston Smith last summer in a deal funded by Dutch private equity firm Waterland.
David Marsh, managing partner at Ormsby & Rhodes, said the AAB deal “will open up new opportunities for our clients to prosper and for our team to thrive professionally”.
Since securing investment from August Equity in 2021, AAB has trebled in size and now employs more than 1,000 people.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
