Alantra advises Sovereign on its acquisition of accounting services business LB Group

May 2023

Buy-side advisory

London – Alantra, the global investment banking firm, has advised Sovereign Capital Partners, the UK private equity Buy & Build specialist, on its acquisition of a majority stake in LB Group, a leading chartered accountancy services firm.

Headquartered in Colchester and with offices in London, Ipswich and Chelmsford, LB Group provides accountancy, taxation, outsourced CFO and business advisory and compliance services to start-ups, SMEs, corporates and private individuals.

With a strategic focus on the East and South East of England the company has enjoyed market-leading organic growth for many years, supplemented by acquisitions. Since 2020, LB Group has increased staff numbers from 100 to around 140 to meet client demand, and undertaken significant investment in its technology and office infrastructure.

Sovereign is backing a high-quality and experienced management team, led by Directors Paul Mustoe, Chris Annis, Stuart Sheldrick and Mark Middleton. Alongside the transaction, Martin Wassell has been appointed as a Non-Executive Chair. Martin has more than 20 years of experience in the business consulting sector and is currently Managing Partner at BIP UK, formerly Chaucer, the digital transformation advisory firm. Sovereign will be further strengthening the management team with the recruitment of an experienced CFO in due course.

This transaction underscores Alantra’s position as a leading advisor to investors and businesses within the accounting services sector, having recently advised AAB on its acquisition of French Duncan, Tenzing on its acquisitions of DJH Mitten Clarke and Gravita, Waterland Private Equity on its acquisition of Cooper Parry, and AAB on its investment from August Equity.

Sovereign was advised by Richard Holden, Alantra’s UK Head of Business Services, Julian Ayisi, Chris J Bates and Julia Hussain.

Richard Holden, Partner and UK Head of Business Services, commented, “We are delighted to have advised Sovereign on its acquisition of LB Group. LB Group is a forward-thinking firm with an ambitious management team that have found the ideal partner in Sovereign.”

Alex Hay, Partner, Sovereign, said, “We are delighted to be working with LB Group. It is a well-managed business with a strong reputation for providing high-quality accountancy and business advice services. We believe that LB is very well-positioned to consolidate the fragmented accountancy sector, initially in the East and South East of England. With our investment and support we look forward to expanding its geographic presence, client base and technology offering. Alantra’s expertise and sector insights were instrumental in helping us formulate our investment strategy alongside the management team and we are grateful for their support and contribution to the deal execution.”

Paul Mustoe, Director, LB Group, said, “We are excited to be partnering with Sovereign. This investment will enable us to accelerate our growth plans, expand our services and deliver even greater value to our clients. Sovereign’s track record of working with high-growth, tech-enabled businesses and its expertise in the financial services sector make it the ideal partner for us.”

Chris Annis, Director, LB Group, said, “We are delighted to have secured this investment from Sovereign. We share their vision for the future of the accountancy and business advice sector, and we believe this partnership will help us cement our position as the market leader in the East and South East of England.”