The “conflict” question

As Ledger Capital Partners continues to pioneer the strategic consolidation of South Africa’s independent accounting sector, one question keeps coming up:

“If you invest in multiple firms within the same region or network, aren’t you creating potential conflict?”

It’s a fair question. Perceptions of conflict exist, even when open conflict doesn’t.

A strategic reflection from the team at Ledger Capital Partners

A long-held private equity idiom says: “You don’t buy businesses. You buy outcomes.”

In the world of accounting firm consolidation, a space where valuations can inflate faster than Excel can refresh, we’ve learned that knowing the real value begins with the difference between the “NAV” and the “NAV Not”.

For years now, you’ve seen article after article detail the global war for talent.

You’ve seen phrases like “attrition”, “sourcing and selection”, and “retention”. The party line is that, across professional services – but in accounting in particular – the demand for qualified, hireable accounting practitioners simply out-strips supply.

The private equity (PE) world has its sights set on accounting firms – and for good reason. Mid-sized firms are proving to be highly attractive investment targets and the ripple effects have the potential to re-shape the global accounting industry.

For South Africa’s accounting sector, this presents an untapped opportunity.

We love accountants. And right now, we know they’re under pressure.

South Africa’s independent accounting firms are facing a combination of headwinds that make running – and growing – an accounting practice harder than ever.

Currency takes many forms. Cash is obvious. Equity? That’s standard. But the real game- changer comes when private equity isn’t just funding, but firepower.

A strategic catalyst.

A high-value currency.