The proposed sale of UK accountancy practice Xeinadin has been put on hold after bids fell short of the more than 1 billion pounds ($1.36 billion) valuation sought by its private equity owner, the Financial Times (FT) informed

Exponent, the UK buyout firm that invested in Xeinadin roughly four years ago, brought in Evercore last summer for a competitive auction.

People familiar with the talks told the publication that interest did not translate into offers at the level Exponent was looking for, prompting the decision to end the sale effort.

Advisers read the abandoned process as a sign that the recent boom in private equity deals for professional services firms may be facing valuation constraints.

Accounting networks in the U.S., U.K. and Europe have attracted significant attention from buyout funds, driving several bids as investors sought to build larger platforms from smaller practices, according to the report.

Many sponsors have followed a buy-and-build model, acquiring local tax and accounting firms and then standardizing systems and investing in technology to improve margins and attract larger clients.

However, some have struggled to deliver the returns initially expected, leading several investors to question whether the sector’s prices have been inflated.

Xeinadin was created in 2019 through the combination of over 100 independent accounting practices and has continued to expand through new acquisitions.

The company has more than 130 offices in the UK and Ireland, with around 2,500 employees.

It provides auditing, corporate finance, taxation and a range of other professional services to small and medium-sized businesses. Last month, Xeinadin acquired Grunberg will expand its footprint in London, UK.

“Xeinadin auction pulled after buyers reject £1bn valuation” was originally created and published by International Accounting Bulletina trademark owned by GlobalData.

The information on this site has been included in good faith for general informational purposes only. It is not intended to be advice on which you should rely, and we make no representations, warranties or guarantees, either express or implied, as to its accuracy or completeness. You should obtain professional or specialist advice before taking or refraining from any action based on the content of our site.