Top 20 UK & Ireland professional services group, Xeinadin, completes agreement to form strategic partnership with significant investment from Exponent

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Investment will fund the group’s ambitious growth strategy and new data-driven technologies

Xeinadin Group, one of the leading professional services groups in the UK and Ireland, has completed its agreement to form a strategic partnership with Exponent, a private equity firm with a proven track record in professional services. This partnership will involve Exponent making a significant minority investment in Xeinadin to support the business’s ambitious growth plans. 

Xeinadin is a group of business advisory and accountancy practices in over 100 locations across the UK and Ireland that provides over 40 service lines to over 50,000 clients, predominantly small and medium sized businesses and their owner-managers. It was formed through a merger of the offices in 2019 and is now structured into 14 regional hubs. 

Xeinadin has more than 1,500 employees across the UK and Ireland, and is one of the professional services market’s leading disruptors and consolidators, with annual revenues of over £100 million in its latest financial year. 

The investment by Exponent will support the Company’s ambitions to grow significantly, both organically and through acquisitions and allow it to make further investments in innovative data-driven technologies to help drive efficiencies and improve the quality, breadth and delivery of services to its clients.

Under the new ownership, Mark Taylor and Tom Lightowler of Exponent will join Xeinadin’s Board, along with John Dwyer, an Exponent Operating Partner, joining as a non-executive director. Alastair Marsh will remain as Chairman. 

Derry Crowley, CEO, Xeinadin Group, said: “The completion of this partnership agreement means we can start the exciting next stage of our growth. We have ambitious plans and have found the right investor to support us and drive forward our ambitions. We have a clear vision of where we want to go in the next phase of our development and we’re confident that Exponent is going to be invaluable in helping us achieve that.”

Mark Taylor, Partner at Exponent, commented: “Xeinadin is one of the leading consolidators in the UK and Ireland professional services landscape and has a huge opportunity in a highly fragmented market. We’ve been impressed by the work done to date by Derry and the team to build a profitable business with highly diversified sources of income, more than 95 per cent of which is recurring. We look forward to working with Xeinadin over the coming years.”

Around 4 million SMEs collectively spend £9 billion annually on professional services in the UK and Ireland, a number that is expected to grow steadily. Market growth is being stimulated by factors including the continued increase in quantity and complexity of government regulatory oversight, such as Making Tax Digital, audit requirements, and sustainability-related regulatory reporting requirements. This will continue to drive greater adoption of third-party outsourcing, tax and operational expertise.

There is also a growing trend for SMEs to outsource finance and other support functions, which is made easier by the increasing adoption of SaaS solutions including accounting software platforms such as Xero, a trend accelerated by the COVID-19 pandemic.