What is Pinksalt Partners really about ?
Pinksalt Partners is an independent boutique private equity venture with a clear focus on acquiring and nurturing small to medium-sized accounting firms in the UK. At our core is a steadfast commitment to stakeholder value creation. This dedication to excellence is manifested through our deep domain expertise, entrepreneurial spirit, bespoke technology, and most crucially, investment in our people. At Pinksalt Partners, we do more than just acquire – we transform and elevate.
Our vision is underscored by a planned exit strategy. As we galvanize the potential of our consolidated brand, we aim to optimize its value, positioning us for a prominent exit through a strategic and discerning private sale. This strategy assures substantial returns for our stakeholders and emphasizes our dedication to elevating and reshaping the UK’s accounting industry.
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Look, don’t congratulate us when we buy a company, congratulate us when we sell it. Because any fool can overpay and buy a company, as long as money will last to buy it.
Henry Kravis
Founder KKR
Pinksalt In Numbers
Strategic Quad
Leadership
An experienced, entrepreneurial leadership team with a proven track record and a steadfast commitment to stakeholder value creation.
Value Addition
A wider set of value-added services is offered from the head office, including specialist tax advice, corporate advisory, financial services, etc.
Technology
We leverage a bespoke, fully integrated all-in-one accounting tech platform to serve our clients most efficiently.
People-centric Approach
Recognising that the true essence of accounting lies in human relationships and personal assurance, we invest in our teams.
Investment approach
Elevating the UK's Premier Accounting Firms
At Pinksalt Partners, we specialise in acquiring and enhancing the operations of established small and medium-sized accounting firms throughout the UK. Our expertise lies in identifying practices that have consistently demonstrated profitability, coupled with a commendable history of fostering client and team loyalty.
Investment Criteria
We primarily target firms with an annual turnover ranging from £0.75m to £5m, seeking those that maintain a robust net profit margin of over 20%. This focus ensures that we partner with firms that have a proven track record and a sustainable business model.
A Partnership of Trust
Recognising that the true essence of accounting lies in human relationships, we highly value the intrinsic knowledge and rapport of the original vendors. Thus, after acquisition, vendors remain an integral part of the firm for an additional 2-3 years. This partnership ensures that we preserve and build upon the deep-rooted trust and relationships they have cultivated over the years.
The Process
Operational Journey of a target firm
Target criteria
- Turnover Range: We typically target firms with an annual turnover between £0.75m to £5m.
- Profitability: Emphasis on firms with profit margin exceeding 20%.
- Reputation: Preference for firms with a proven track record.
- Loyalty: High value placed on strong team and client loyalty.
Investment process
- Deal Origination: Our extensive network, built over the years, secures preferential treatment thanks to our swift execution, innovative solutions, and an all-cash transaction approach.
- Due diligence: A dedicated team with a track record of over 20 accounting acquisitions.
- Payment Terms: Deferred consideration, spread over 2-3 payment periods with a clawback provision, typically commencing with 50% on Completion.
Post acquisition – Integration and transformation
- Service Expansion: Introduction of new service lines to enhance our offerings.
- Tech Evolution: Transitioning to a tailored, fully integrated technology platform.
- Team Enhancement: Enhancing the skills of team members to drive operational excellence.
- Client Focus: Prioritising and strengthening client relationships for sustained growth.