MHA Celebrates First Year on London Stock Exchange Amid Market Turbulence
Wednesday marks exactly one year since MHA, the UK and Ireland arm of Baker Tilly International, rang the opening bell at the London Stock Exchange. The advisory group's decision to go public came during a period of significant global uncertainty that has only intensified since their listing.
A Challenging IPO Launch in Volatile Times
MHA's initial public offering arrived just weeks after former US President Donald Trump launched what he termed 'Liberation Day' on April 2, 2025 - the beginning of a tariff war that sent shockwaves through global markets. Despite this challenging backdrop, MHA proceeded with its plans to float on the Alternative Investment Market (AIM).
The firm initially targeted a £350 million valuation with plans to raise £125 million. Ultimately, MHA raised £98 million and achieved a valuation of £271 million. Since that time, geopolitical tensions have escalated further with Trump launching an actual war in the Middle East.
Market Volatility and Investor Response
Rakesh Shaunak, chief executive of MHA, acknowledged the market's unpredictability in an interview with City AM. "We knew we were entering a goldfish bowl," Shaunak stated. "The market itself has been a bit of a surprise... on how fickle the market is... with things like geopolitical factors, of which the big ones recently blew up."
He added that MHA's share price oscillation has been surprising, noting: "That, I'll be quite frank, has been surprising because we didn't expect that much of an oscillation." Despite this volatility, Shaunak emphasized that MHA's cornerstone investors have remained supportive throughout the turbulent period.
Growth Strategy and Financial Performance
MHA has set an ambitious target of generating £500 million in medium-term revenue. The group reported record revenues of £224.2 million for the year ending March 31, 2025 - representing a substantial 45 percent increase from £154 million in 2024.
The firm's growth strategy has focused heavily on mergers and acquisitions following its IPO. Key acquisitions include:
- Baker Tilly South-East Europe in August 2025 for €24 million (£20.8 million)
- Dubai-based audit firm Moore Stephens for £7.4 million
Investor Perspective on MHA's Performance
Dan Coatsworth, head of markets at AJ Bell, described MHA as "a slow burner" with investors. "At its peak in February 2026, MHA had enjoyed a 75 percent share price rise on its April 2025 IPO, which was a remarkable achievement," Coatsworth noted.
He explained that the group's gains were driven by solid trading updates, decent financial results, and strategic acquisitions. However, Coatsworth added: "Unfortunately, the stock has given up much of its gains since February despite the absence of any news beyond sowing up an acquisition."
This decline might reflect profit-taking by investors who benefited from the post-IPO bump or disappointment about the UK's economic outlook potentially reducing demand for MHA's services.
No Regrets About Going Public
Despite market challenges, Shaunak expressed no regrets about listing the group. "I'm very happy about the decision," he stated, adding that "morale and momentum internally is really good." MHA partners are locked in for four years with a five-year clawback provision, reflecting the firm's focus on long-term value creation over four to five years.
Private Equity Competitors Face Challenges
Shaunak highlighted that MHA's competitors who opted for private equity investment are now navigating "stormy waters." He explained that many private equity consolidators "weren't able to flip" their investments, and the "private credit squeeze" is beginning to impact the private equity sector.
"When MHA chases targets, nine times out of ten we're pitching against private equity," Shaunak revealed, identifying private equity firms as MHA's primary competitors. "What this means is that our competition is facing a really tough time and therefore, I think we're really well positioned, despite the geopolitical backdrop, especially in markets like Ireland."
Shaunak concluded by emphasizing MHA's strong market position: "The attractiveness of our proposition... means we just stick to our resolve that we have a very good proposition." As MHA enters its second year as a publicly traded company, the firm appears confident in its ability to navigate ongoing market volatility while capitalizing on competitors' struggles in the private equity space.
