Sovereign backs accountancy services business, LB Group

Sovereign Capital Partners, the UK private equity Buy & Build specialist, has acquired 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.

Alex Hay, Partner, Sovereign Capital Partners, 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."

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."

Notes to editors:

About Sovereign Capital Partners

Sovereign is a specialist investor that focuses on partnering talented management teams and high-quality businesses, in specific service-based sectors, to deliver accelerated growth both in the UK and internationally. We do this through our proven strategy of Buy & Build. Whether through organic growth, acquisition or a combination of both, we provide strategic investment and look for innovative ways to create not just value, but businesses we’re truly proud of. Sovereign Capital Partners LLP is authorised and regulated by the FCA.

About LB Group

With over 50 years’ experience, LB Group has a proven track record of accountancy, tax and consulting services, and sound business advice with a commercially strong team helping hundreds of businesses and individuals to reach their full potential, year on year. We aim to ensure clients receive a high level of support and a value for money service to help ensure all accounting and tax compliance matters are kept fully up to date.

Advisers

Sovereign would like to thank its advisors on this deal which include:

• Buy-side financial advisor: Alantra (Richard Holden, Julian Ayisi)
• Financial due diligence: EY (Cary Wilson, Connor McVeigh)
• Tax due diligence and tax structuring: Alvarez & Marsal (Dafydd Williams, Hugo Keane and Benoit Chan)
• Commercial due diligence: Fairgrove (Paddy Woods Ballard, Adam Lee)
• Insurance due diligence: Vista (Peter Warburton, Daniel Blake)
• Legal due diligence and Legals: DWF (Alasdair Outhwaite, Ciara Healy)