MHA faces uphill battle to secure £125m IPO funding

The accountancy firm MHA, part of the Baker Tilly network, is attempting to float its shares on the London Stock Exchange amid significant financial ambitions. The firm advertised a fundraising target of £125 million but has only secured approximately £100 million from investors. The commitments reflect a post-money valuation of about £275 million. With the intense backdrop of global market volatility, particularly after political events like Donald Trump’s tariffs, the firm's public listing process is dogged by uncertainty. In recent weeks, discussions and negotiations took place within the firm as stakeholders awaited progress on the IPO. Under normal circumstances, companies in the accountancy sector prefer private partnership structures, which makes MHA's decision to go public a notable rarity. While many firms remain privately owned, the recent sale of a majority stake in the UK arm of Grant Thornton to private equity firm Cinven highlights a trend among accounting firms seeking capital and restructuring options outside traditional partnerships. The prospective IPO is intensified by upcoming scrutiny from regulators concerning MHA's past audit activities, particularly tied to the failed construction firm ISG. This challenge can create additional hurdles for MHA’s public offering, especially as potential investors would be keen to evaluate the firm's audit integrity before committing financial resources. Company insiders maintain an optimistic perspective regarding the IPO, believing that they have sufficient backing to proceed. Going public in such a climate can prove treacherous, particularly in light of fluctuating investment appetites and external economic pressures. However, MHA hopes to finalize its plans and potentially begin trading within the month, pushing for a successful launch despite the surrounding turbulence. The firm's resilience and proactive approach are being tested as it navigates this critical juncture.