UK accountancy firm DHJ has acquired Dublin-based MSD Accountants in Dublin and plans to use it as a platform for buying other firms, as consolidation in the sector gathers pace.
DHJ, which is backed by London private equity firm Tenzing, said that MSD will continue to be led by managing partner Richard Daly and head of assurance Brendan Murtagh. Swords-based MSD has 30 staff in total.
“The partnership also gives us the perfect platform to target more M&A activity in Ireland,” said DJH chief operating officer James Beardmore.
DHJ has already carried out 15 acquisitions in the United Kingdom since it was set up four years ago.
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The small- to mid-tier Irish accounting sector has seen a surge in deal making in the past three 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.
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 rebranding the firm and securing other purchases.
Elsewhere, 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. Other UK firms Moore Kingston Smith and AAB are also among overseas players that have been actively acquiring Irish businesses in recent times.
