AAB and Kreston Reeves Reach Deal in Major Accounting Milestone

AAB and Kreston Reeves have announced a landmark business combination that will forge one of the United Kingdom’s largest mid-market professional services groups, with combined annual revenues surpassing £200 million. The deal, backed by Goldman Sachs Alternatives, represents the single biggest transaction in AAB’s history and sends a clear signal that consolidation in the UK accounting sector is accelerating at pace.

The transaction, announced on February 9, 2026, brings together AAB’s 1,250-strong workforce and Kreston Reeves’ 550 employees to create a combined operation of more than 1,800 professionals spread across 23 locations in the United Kingdom and Ireland. Kreston Reeves, a South East England accountancy and advisory firm with a heritage stretching back more than 200 years, operates seven offices across London, Kent and Sussex and generates revenues in excess of £50 million. AAB, prior to the deal, reported turnover north of £145 million with more than 90 partners on its books.

The combination is the 18th deal AAB has completed since it first secured private equity investment from August Equity in 2021, a period in which the Scottish-founded firm tripled in size and grew from a regional player into a nationally recognised brand. It is also the third transaction AAB has closed since Goldman Sachs Alternatives completed its acquisition of the firm from August Equity just two months ago, a succession of moves that underscores the pace at which the new ownership structure is deploying capital.

Emma Lancaster, chief executive at AAB, described the tie-up as a defining moment. She said the push beyond £200 million in group revenue was not a vanity exercise but a calculated effort to build a resilient, sustainable business capable of delivering long-term value for clients, employees and the communities the firm serves. Lancaster added that AAB and Kreston Reeves share a mutual dedication to putting clients at the centre of their operations, making the cultural fit between the two organisations a natural one.

Richard Spofforth, managing partner at Kreston Reeves, echoed that sentiment. He pointed to the broader specialist expertise and greater geographic reach the combined platform would offer clients, while emphasising that the deal would also unlock new career opportunities for Kreston Reeves’ staff. For a firm with roots dating back two centuries, the decision to join forces with a fast-scaling challenger brand backed by one of Wall Street’s most powerful investment banks marks a significant pivot toward a more ambitious growth trajectory.

Goldman Sachs Alternatives, the private markets investing arm of Goldman Sachs with more than $500 billion in assets under management, is providing the financial firepower behind the deal. Jose Barreto, partner, and Mihir Lal, managing director of private equity at Goldman Sachs Alternatives, said the combination of AAB and Kreston Reeves accelerates their shared vision of establishing a national presence across the UK and Ireland. They highlighted the importance of gaining essential scale in the South East of England, a region that represents a critical growth corridor for mid-market advisory services.

The strategic logic is straightforward. AAB and Kreston Reeves each bring complementary strengths to the table. AAB offers depth in audit, accounting, tax, payroll, HR, outsourcing and advisory services, with an established footprint in Scotland, the North of England, Ireland and the United States. Kreston Reeves delivers a diversified portfolio of SME and mid-market clients in London and the South East, along with deep expertise across audit, accounting, tax and advisory work. The combined entity intends to use Kreston Reeves’ offices as its regional hub for the South East, plugging a gap in AAB’s geographic coverage that had previously limited its ability to compete for London-adjacent mandates.

The broader context matters. The UK accounting profession is in the grip of a consolidation wave driven by private equity capital, rising regulatory complexity and the growing demand from mid-market businesses for integrated advisory services that extend well beyond traditional compliance work. Cinven completed its majority investment in Grant Thornton UK in April 2025, in a deal valued at up to £1.5 billion, while Apax Partners closed its £700 million acquisition of the Smith and Williamson professional services arm from Evelyn Partners in early 2025, relaunching it as S&W Group. AAB and Kreston Reeves are positioning themselves squarely in that competitive landscape, betting that scale, technology investment and cultural alignment will prove decisive advantages over the coming years.

AAB was founded in 1990 in Scotland and spent its first three decades building a strong regional reputation. The firm’s trajectory shifted dramatically in 2021 when August Equity invested, triggering a rapid acquisition spree that saw 16 deals completed in four years. By January 2025, AAB had reached £100 million in annual revenue, tripling in size in just three years. When Goldman Sachs Alternatives took over ownership in late 2025, the firm had already built a platform capable of absorbing larger targets. The Kreston Reeves deal is proof of that capacity.

The transaction remains subject to regulatory approval and is expected to close in the spring of 2026. Kreston Reeves was advised by Rothschild and Co on financial matters and Shoosmiths on legal. AAB was advised by Goldman Sachs International as financial adviser, with Addleshaw Goddard and Linklaters acting as legal counsel.

Looking ahead, AAB and Kreston Reeves have signalled that further investment opportunities are already under discussion to strengthen the group’s regional and national footprint. With Goldman Sachs capital behind it, a combined workforce of 1,800 and revenues exceeding £200 million, the newly enlarged group has the balance sheet and the ambition to keep acquiring. In a sector where scale increasingly determines who wins the best mandates and the best talent, this deal positions the firm as one to watch in the race for mid-market dominance across the UK and Ireland.