The UK lower mid-tier market continues to consolidate and grow
due to increasing international referral work and M&A activity,
according to CharterGroup chief executive Gary Corbett.

Corbett confirmed consolidation has increased over the past four
years right throughout the mid-tier and lower mid-tier.

“Our growth is bolstered by quite a high degree of merger
activity, so you could say that we outperform the market by between
5 and 10 percent on organic growth. But that can be swung
dramatically by acquisition of some of our larger firms that have
doubled in size in the last three years,” he said.

CharterGroup is an alliance of 55 independent mid-tier chartered
accounting firms that recently formed a national cross-disciplinary
partnership with LawNet, an association of independent law firms.
CharterGroup’s firms range in size from £2 million to £11 million
($3.5 million to $19.39 million) in fee income with the alliance
generating £166 million in total.

The new national partnership with LawNet is designed to increase
referrals between the two groups and drive the combined revenue of
both groups past £400 million.

Apart from standard accounting work, the group’s members provide
tax planning, M&A, corporate finance and corporate recovery
services.

Corbett said there has recently been a noticeable rise in the
number of requests for international work within his UK alliance
and from other international accounting associations.