In the fragmented accountancy industry, compliance and succession are front of mind for many. TC Group has built a model that not only consolidates great businesses but also retains what makes them successful.

With an estimated 20,000–40,000 independent accountancy firms across the UK, there is a lot of scope for consolidation. And the benefits of scale are myriad, with the right group bringing practice management infrastructure and investment in technology to erstwhile smaller firms.

Beyond size, consolidation can help smaller operators address today’s challenges, including increasing compliance demands, talent acquisition and retention challenges, and succession planning as many partners approach retirement.

TC was one of the first platforms in its sector, having merged with over 20 firms before partnering with Inflexion in 2023. The investment has enabled to accelerate its efforts. “Without external backing, it would have been increasingly difficult to maintain our pace of M&A and remain competitive,” Executive Chairman Grant Bartholomew concedes.

But it’s not just about financial firepower. “We’ve always been humble enough to recognise that we don’t have all the answers, and private equity brings expertise, networks, and strategic guidance,” he says. While they had many offers from investors, he says Inflexion stood out because they understood the business and shared their vision.

Since Inflexion’s investment, TC has completed another 25 transactions, and its approach sets it apart in an increasingly competitive space. “Unlike many platforms, we don’t impose rigid central management structures or strip away autonomy. Instead, we align with partner firms in a way that respects their business model, staff, and client relationships,” Grant explains (see box).

It’s working. Late 2024 saw TC’s efforts recognised by prestigious industry publication Accountancy Age rankings which saw the firm make it into the top 20, up four places from the year prior owing to a phenomenal 69% growth in income fees. The firm attributes its rise to the numerous strategic mergers and acquisitions across various regions, alongside an expansion of value-added specialist services for existing clients.

Clear runway ahead

There is farther to go, with a number of drivers propping up prospective partners. Firstly, many firms struggle to invest in technology as a small and independent entity – a topic becoming more pressing as AI and automation reshape the landscape. But by bringing practices together within a larger, well-resourced organisation, investment opportunities are more within reach, and efficiency and service quality can both improve.

Secondly, succession planning is creating another opportunity. Many partners who have spent decades building their firms are now looking for a step towards exit but want to keep their legacy intact. TC’s model provides a runway for transition that keeps the essence of these businesses alive with an equity structure that ensures firms can retain their culture.

“The more we have grown, the stronger our platform has become. With every transaction, we refine our ability to support partners, ensuring they benefit from our infrastructure while maintaining autonomy.” To support this, Grant explains TC’s introduction of five Group Managing Partners (GMPs), which he describes as a unique support structure within the Group. “Unlike traditional management, these GMPs act as advocates and enablers, helping partner firms achieve their ambitions faster. They support, not control, ensuring practices thrive by accelerating growth to drive expansion and maximise operational efficiencies.”

M&A from 2025 onwards will be about continuing to expand national footprint as well as scaling TC’s c. 40 offices. “Our approach typically falls into two categories: new geographic hubs to expand our footprint by merging with established firms in regions new for TC, or tuck-in acquisitions, which are typically smaller firms which join our hubs and improve partner earnings and accelerate growth,” Grant explains. Legislative changes in 2024 helped to drive volume of new location acquisitions and made it a buoyant year for M&A. “Over time, we expect fewer new geographic acquisitions and a shift towards more tuck-ins, helping existing practices scale efficiently,” Grant explains. “We offer a very compelling proposition for tuck-in acquisitions: our local practices offer the same personal service with commensurate fee structures their clients value, with the acquisition execution capabilities and services depth of a national firm.”

Tailwinds for growth

One of TC’s biggest shifts since partnering with Inflexion has been TC’s investment in leadership talent. “Initially, we were cautious about the costs associated with new appointments, but it became clear they were essential to accelerating our growth,” Grant admits. He points to a new CFO who came from Inflexion’s own deal team, a COO from one of TC’s partner practices, and an M&A Director, who along with a small team has shifted the M&A focus away from Grant. “Scaling at this level requires a dedicated team, and expanding this function has transformed our ability to execute deals efficiently.” These are just a few recent hires into TC’s Central Services team that has continued to evolve since being developed nearly 10 years ago.

TC’s growing size combined with the flexible funding and expertise from Inflexion have provided tailwinds for the Group. “Since Inflexion’s investment, we’ve seen increased credibility and visibility. Being recognised as an Accountancy Age Top 20 firm has not only strengthened our brand but also helped in client acquisition – some audit clients specifically seek representation from top-ranked firms.

Our success is driven by the market and our unique place in it – a position we intend to strengthen in the years ahead.

Grant Bartholomew, Executive Chairman, TC Group

Looking ahead, TC’s focus remains on owner-managed SMEs as the Group strives to be the UK’s leading provider in this space. “We continue to appraise and identify new capabilities and services to bring into the Group outside of our core accountancy and advisory service offering, as well as invest in initiatives to further optimise service delivery by our practices, including through bringing outsourced solutions in-house and harnessing AI and automation tools.”

And in the medium- to long-term, looking abroad for growth may be on the cards. “Markets with similar dynamics, such as the US, could present opportunities. However, our approach will be measured, ensuring that the TC model translates effectively before making any moves.”