MHA completes €24m acquisition of Baker Tilly South-East Europe

MHA, a professional services provider of audit, tax, accountancy and advisory services, has completed the acquisition of Baker Tilly South-East Europe (BTSEE) in a deal valued at up to €24 million, according to the company.

The acquisition, first announced to the London Stock Exchange on May 7, is MHA’s first as a listed business and gives it an immediate and significant presence in Continental Europe.

BTSEE operates seven offices across Cyprus, Greece and the wider South-East Europe region, employing more than 400 professionals and 12 partners. It reported revenues of €19.4m in 2024, growing at a compound annual rate of 9 per cent over the past four years.

Under the agreement, MHA will pay 90 per cent of the initial €20m equity value through €5.4m in cash and €12.6m in new ordinary shares, equivalent to 10,862,069 shares.

The remaining 10 per cent will be settled in additional shares, which the vendors will contribute to the company’s Employee Benefit Trust after completion account adjustments.

A final balancing payment, comprising cash and shares, will depend on net debt and working capital adjustments.

It is also mentioned that all consideration shares will be subject to lock-in and clawback arrangements, in line with those applied to MHA partners at IPO.

Application has been made for the new shares to be admitted to trading on AIM on August 12. Following admission, MHA will have 282,073,833 ordinary shares in issue, with no shares held in Treasury.

According to the company, the acquisition is expected to be earnings-enhancing within the first full financial year after completion.

Rakesh Shaunak, CEO of MHA, said the deal “aligns directly with our strategy stated at IPO to expand our international footprint, including the potential to bring other members of the Baker Tilly International Network into the Group where an opportunity arises.”

He added that BTSEE is “an excellent fit, providing us with an immediate and significant presence in Continental Europe and enabling us to further expand our footprint in key strategic locations.”

Marios Klitou, the chairman of BTSEE, said “joining forces with MHA marks an exciting milestone for our firm, underpinned by a shared culture and outlook that made the decision a natural one.”

He also noted that with strong foundations in place, the partnership would quickly deliver meaningful benefits for clients and staff, and that “further exciting news on developing our scope of services and our physical footprint in Cyprus and Greece will follow shortly.”