Business
Proposed Acquisition
Proposed Acquisition.
About this update from Mha Plc
[{"type":"text","content":"\n\n \n7 May 2025\n \nMHA plc\n(\"MHA\", the \"Company\" and together with its subsidiaries the \"Group\")\n \nProposed Acquisition of Baker Tilly South East Europe\n \nMHA (AIM: MHA), a leading professional services provider of audit and assurance, tax, accountancy and advisory services is pleased to announce that later today, at the Baker Tilly South East Europe Holdings Limited (\"BTSEE\") conference in Athens, delegates will be informed that the Company has entered into a heads-of-terms agreement (the \"Agreement\") regarding the proposed acquisition of BTSEE, for a total maximum consideration of approximately €24 million (the \"Acquisition\"), with the final consideration to calculated based on completion accounts and subject to completion of final due diligence.\n \nIn line with its acquisition strategy, and as stated in the Company's recent Admission Document, MHA has been pursuing strategic cross-border M&A opportunities, including other existing members of the Baker Tilly International Network which are already well-known to MHA.\n \nThe Group identified BTSEE as an ideal fit for MHA, noting its strong financial track record, growth potential, alignment of culture and complementary services to MHA. BTSEE is a leading professional services firm offering a comprehensive range of services to clients in Cyprus, Greece and South East Europe, predominantly in audit, tax, advisory, legal and corporate services. It has particular strengths within Cyprus, where it is the fifth largest accountancy firm, after the Big Four, in the financial and government sectors and in the audit of large clients, including a number of PIEs. BTSEE has 13 Partners and approximately 400 employees. The Acquisition would represent a key step in the Company's growth strategy, providing MHA with a presence in mainland Europe and an alliance with a local partner that is well established in the region and with whom MHA already has a close working relationship.\n \nFor the 12 months ended 31 December 2024, BTSEE generated sales of €19.4 million, adjusted EBITDA of €3.9 million and profit before tax of €2.5 million, after adjusting for partner remuneration. BTSEE's revenue has grown over the past four years at a compound average growth rate of 9% per annum. As at 31 December 2024, BTSEE had net assets of approximately ...