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Alantra advises Tenzing on its investment in top 50 UK accounting firm


SECTORBusiness Services

ServiceM&A

Nov 2022
Buy-side advisory

London – Alantra, the global investment banking and asset management specialist, has advised Tenzing on its investment in DJH Mitten Clarke, a top 50 UK accounting firm.

Headquartered in Stoke-on-Trent, DJH Mitten Clarke provides accounting, audit and payroll compliance services, as well as tax advisory, to SMEs across the Midlands and North-West. 

The firm has increasingly differentiated itself from other providers by evolving the traditional partnership model to provide a unique and powerful business support function for all of its fee earners. Its people-first approach recently earned it a spot on the UK’s Best Mid-Sized Companies to Work For list and ranked as a top 3 firm for ‘Investing in People’ in the 2022 Accounting Excellence Awards.

The business has a strong track record of delivering double-digit organic growth, supported by its use of technology and an innovative approach to service delivery. Client Service Directors are Key Account Managers responsible for building account relationships and maintaining high standards of client service from the delivery teams through a pod structure, creating more scalability and efficiency. Excellent NPS scores and a reputation for exceptional service have resulted in market-leading client retention across its customer base, reflecting the calibre of the firm’s proposition.

Increased regulation continues to drive demand in the UK accounting market, which is large and growing at 5% YoY, with the SME segment estimated to be worth £9 billion.

Tenzing’s investment will help the business to maximise its potential by continued investment in sales and marketing and support its ongoing acquisition strategy.

Tenzing was advised by Richard Holden, UK Head of Business Services, Chris J Bates and Julia Hussain. This transaction is further testament to Alantra’s expertise in the accounting services sector, having recently advised on the investments in Jeffreys Henry and Cooper Parry by Tenzing and Waterland Private Equity respectively, and Anderson Anderson & Brown (AAB) on its investment from August Equity.  

Richard Holden, Partner and UK Head of Business Services, commented, “It was a pleasure working with Tenzing on this transaction. This is the second time we have advised the team on investing in the accounting services sector and they will be a valuable partner for Scott and the rest of the management team. We are excited about momentum in the accounting services and continue to see strong interest from private equity investors.”

Mike Reynolds, Investment Team at Tenzing, added, “Following our historical investment in Jeffreys Henry, a tech-enabled accounting and service provider in London, we are very excited to further invest in the UK accounting services market, supporting continued innovation and evolution in this sector. DJH Mitten Clarke is highly innovative in its approach to supporting clients, and we’ve been so impressed by the quality of the management team, especially their proactive investment in talented people and differentiated systems. UK businesses have a real challenge on their hands right now due to increased regulation mandating ongoing compliance work, and DJH is well-positioned to capitalise on this opportunity due to its unique approach to client delivery.”

Scott Heath, CEO of DJH Mitten Clarke, said, “After talking to a number of potential investors, it was clear that Tenzing is the perfect fit for our business. Not only do they have a proven track record within the professional services and technology sectors, they also have a people-first approach, meaning we’re well and truly aligned. Tenzing’s philosophy is to back teams who they believe in, and support them to reach their own summit, which is exactly what we were looking for from a partner. The support from Tenzing will allow us to further invest in our team and accelerate the transformation of our business, making our vision become a reality. Our aim is to keep innovating and further enhance the advice and experience we deliver to our clients.”

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