This story was originally published on CFO.com. To receive daily news and insights, subscribe to our free daily CFO.com newsletter. For private equity, 2025 was a year of longer hold periods and fewer but bigger deals, and some observers say that may well be a “new normal” for the industry. Last year, total private equity deal value hit $2.6 trillion globally, up 19% over 2024, according to McKinsey & Company’s Global Private Markets 2026 report released last week. That marked the second-highest value o ...

Core Viewpoint - The sale of UK accountancy practice Xeinadin has been paused due to bids falling short of the £1 billion ($1.36 billion) valuation sought by its private equity owner, Exponent [1][2]. Group 1: Sale Process and Valuation - Exponent initiated a competitive auction for Xeinadin but ended the sale effort as the interest did not translate into offers meeting the expected valuation [2]. - The abandoned sale process indicates potential valuation constraints in the recent boom of private equity deals for professional services businesses [2]. Group 2: Industry Trends - Accounting networks in the US, UK, and Europe have seen increased interest from buyout funds, leading to higher deal multiples as investors pursue a buy-and-build strategy [3]. - Many investors have been acquiring local tax and accounting firms to standardize systems and invest in technology, aiming to enhance margins and attract larger clients [3]. Group 3: Company Overview - Xeinadin was established in 2019 through the merger of over 100 independent accounting practices and has continued to grow through additional acquisitions [4]. - The company operates more than 130 offices in the UK and Ireland, employing around 2,500 staff and providing a range of professional services including audit, corporate finance, and tax to small and medium-sized businesses [4][5]. - Recently, Xeinadin expanded its presence in London by acquiring Grunberg [5].

Core Insights - Private equity dealmakers are completing fewer but larger transactions in 2025, as highlighted in KPMG's third quarter "Pulse of Private Equity" report [1] Global Private Equity Activity - There were 4,062 private equity deals globally in Q3 2025, a decrease from 5,070 in Q3 2024, yet total global private equity investment increased to $537 billion from $512 billion year-over-year [2] - Over the first three quarters of 2025, private equity firms executed transactions worth $827.8 billion, nearing 2024's total and on track to reach a four-year high despite a decline in deal volume [4] U.S. Private Equity Trends - In the U.S., deal count fell to 1,791 in Q3 2025, while deal value rose to $300.2 billion, marking the first time U.S. deal value has exceeded $300 billion since Q1 2022 [3] - The three largest U.S. deals contributing to the surge in value include the $55 billion buyout of Electronic Arts, the $28.2 billion acquisition of Air Lease, and the $12.4 billion purchase of Dayforce, with the EA buyout being the largest leveraged buyout on record [5] Market Resilience and Trends - KPMG's U.S. sector leader for private equity noted the market's resilience despite four consecutive quarters of declining deal volumes, with larger deal sizes pushing overall value beyond historical levels [6] - The trend of taking publicly traded companies private is notable, with the number of public companies in the U.S. decreasing from around 8,000 in 1996 to about 4,000 currently [6] - Private equity investors are capitalizing on the challenges faced by public companies, allowing for large-scale transformations that drive value creation [7]