Traditionally, the UK accounting industry has been built on conservative foundations—partnership models prioritizing stability, independence, and client trust. Yet, in recent years, a transformative force has reshaped the sector: private equity.
Once viewed with scepticism due to fears of cultural clashes and short-term profit pressures, private equity has become a strategic enabler for firms navigating technological disruption, competitive talent markets, and increasing client demands. By providing capital, operational expertise, and growth acceleration, private equity is helping firms like Azets evolve to meet these challenges head-on.
On a crisp morning in Glasgow in December 2024, Azets’ Group CEO, Chris Horne, sat down with Accountancy Age to discuss how private equity has fueled the firm’s remarkable growth—completing over 90 acquisitions and growing to 3,800 employees across six countries. Backed by leading private equity investors Hg and PAI, Azets has demonstrated how this approach can build not just scale but sustainable value for clients, employees, and communities.
Azets was among the first to embrace PE investment – in fact, the firm wouldn’t exist without it. At a time when many firms remained cautious, the top 10 accounting firm was built out of an investment used to fuel ambitious growth, embrace technological innovation, and expand its service offerings.
But growth for Azets hasn’t focused just on the numbers. The firm has carved out a unique position by combining the expertise and resources of a large firm with the personal service and local knowledge SMEs value. This is where private equity plays a pivotal role, enabling Azets to invest deeply in technology, regulatory expertise, and talent development.
“Private equity has helped us grow, but it’s the people who bring that growth to life,” Horne explains. For Azets, this means building a culture that supports not just its clients’ ambitions but also its employees’ career development and its communities’ needs.
Starting with scale
Since its inception, private equity backing has allowed Azets to complete over 90 acquisitions, integrating firms across the UK and Europe.
These acquisitions, Horne explains, have been instrumental in creating a scalable business model tailored to SMEs—an arguably underserved segment within the UK market often caught between the personal touch of small firms and the breadth of services offered by larger ones. By consolidating firms under one cohesive brand, Azets has managed to close that gap, positioning itself as the leading provider for SMEs in each of its markets.
But private equity’s value isn’t just in fuelling acquisitions. Horne highlights how the investment supports the firm’s ability to innovate—particularly in expanding services and developing people.
Investments in regulatory capabilities and technology have enabled the firm to meet increasingly complex client demands, such as navigating ESG requirements or tackling cash flow challenges.
“It’s not just about scale,” Horne explains. “It’s about being able to deliver smarter, more tailored solutions that help our clients thrive.”
Through its private equity model, Azets has found a way to scale without losing sight of what matters most to its clients: trust, personal service, and meaningful relationships.
Turning capital into client value
While private equity often conjures images of cost-cutting and profit focus, Azets’ approach tells a different story. For Horne, the key to leveraging private equity lies in creating value—not just for investors but for clients. “Our purpose is to improve the lives of our clients, our colleagues, and our communities in a sustainable way,” he explains.
“SMEs face challenges that are often as complex as those of larger businesses,” Horne explains, “but they don’t always have access to the same level of support.”
Private equity has allowed Azets to address this gap by expanding its offering to include advisory services like tax planning, restructuring, and ESG reporting. These capabilities, once out of reach for many smaller businesses, are now delivered as part of a full-service model tailored to their needs.
Technology has been another key area of investment. Tools such as automated feedback systems and data analytics enable Azets to better understand client priorities, refine services, and track satisfaction. “These systems aren’t just for show—they give us insights we can act on,” says Horne. The result is a more responsive and efficient client experience, with solutions tailored to real-time needs.
Consistency is equally important. By integrating smaller firms under a unified model, Azets ensures its clients benefit from the combined expertise of a large network while maintaining the personal relationships they value. Clients have a single point of contact but access to the wider resources and capabilities of the firm as a whole.
Merging teams, not just firms
For Horne, the success of Azets’ private equity-backed is intrinsically linked to the ability to enforce a shared culture. “Simplistically, don’t do bad deals,” Horne says, referring to the importance of selecting firms that align with Azets’ values and operational model. Culture, Horne believes, is what enables growth to be sustainable, particularly when integrating firms acquired through rapid expansion.
The firm carefully considers cultural fit a cornerstone when looking for potential acquisition targets—prioritising businesses that share a commitment to their people and clients. “If a firm doesn’t focus on its people, it’s going to be a difficult integration,” Horne says. This emphasis on alignment has been critical in avoiding the friction that has accompanied consolidation within the market.
To support this, Azets has built an experienced M&A integration team of over 20 people dedicated to ensuring smooth transitions for newly acquired firms. This team focuses on pacing the integration process carefully, recognising that employees from acquired businesses haven’t always chosen Azets in the same way—they’ve joined by circumstance.
Short-term challenges, such as dips in employee engagement Horne acknowledges, are normal but are addressed where necessary. Metrics like employee net promoter scores (NPS) provide valuable insights, helping Azets measure the success of its integration efforts. Over time, these scores stabilise, aligning with Azets’ existing benchmarks and reinforcing its reputation as a people-first business.
Retaining entrepreneurial spirit is another priority for the firm. Azets encourages open dialogue, innovation, and the sharing of ideas across the organisation, ensuring employees feel empowered to contribute throughout an integration process.
PE’s mark on modern accountancy
Private equity is quickly becoming a differentiating factor for the UK accountancy sector, as demonstrated by Accountancy Age’s 2024 50+50 Rankings, and findings from it’s Accountancy Sector Outlook Report for 2024-25.
Horne observes that consolidation is one of the most significant trends in the sector, with the UK market moving toward fewer, larger firms. “We’re seeing more firms look to private equity as a way to consolidate and scale,” he explains. For Azets, this trend aligns perfectly with its strategy.
By bringing together smaller firms under a cohesive model, Azets has created a structure that combines the scale and expertise of a large organisation with the personal relationships SMEs value.
The appeal of private equity lies, Horne notes, in its ability to provide not only capital but also a structured framework for sustainable growth. “Private equity allows us to focus on building a single, unified Azets,” Horne explains, contrasting this with models where firms operate independently post-acquisition.
What the future holds for Azets
When asked about the future, Horne noted that Azets plans to remain at the forefront of the growing consolidation trend in the accountancy industry. As CEO of the firm, he anticipates further consolidation in the UK market, with Azets playing a central role in shaping this landscape.
“We expect to see more firms joining us as part of the Azets Group,” he explains.
Expanding advisory services, particularly in areas like ESG and sustainability, is also high on the agenda. As SMEs face increasing regulatory scrutiny and pressure to operate more sustainably, Azets is positioning itself as a trusted partner to help businesses navigate these challenges.