Mon, 02 Feb 2026 | BUSINESS NEWS
Private equity group Exponent has scrapped its sale of accounting firm Xeinadin after reportedly failing to get bids that matched its £1 billion-plus valuation of the business. Exponent initially invested in top 20 accounting firm Xeinadin four years ago.
Since securing backing from Exponent, Xeinadin, which was founded in 2019 through the merger of more than 100 independent accounting firms, has completed 27 acquisitions, amid widespread consolidation in the professional services sector.
While much of this professional services M&A activity has been driven by private equity investment, Exponent’s failure to secure acceptable bids for Xeinadin has been interpreted as a potential sign of waning investor interest in the sector.
Despite significant M&A activity and considerable investment in technology and building scale, some investors have reportedly struggled to achieve the returns they were hoping for. As a result, certain advisers say that investors have become increasingly discerning over valuations.
Xeinadin has over 130 UK and Ireland offices, with a 2,500-strong staff providing auditing, tax and corporate finance services to small and medium-sized businesses. In accounts for the year to May 31 2024, the group reported revenue of £155.5 million, compared to £131.6 million in the previous 509-day period, but fell to a pre-tax loss of more than £34 million.
According to advisers quoted in reports, the company has not integrated its acquisitions well, potentially putting off would-be suitors. Sources close to the company, however, claim that this was unrelated to the collapsed sale process and that the business was “fully consolidated”.
Exponent engaged advisers from Evercore to run an investment process for Xeinadin in summer 2025. Xeinadin reported “multiple expressions of interest” but said that the opportunity to generate further value led the board to conclude a sale would come too soon. Exponent, meanwhile, was reported to have decided against rushing into an exit.
When conducting an acquisitive growth strategy, integration is more important than scale or volume
Read about the factors that have driven widespread professional services consolidation
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