Making corporate finance partner at 30 was a step to becoming head of corporate finance at Moore Kingston Smith. Marc Mullen talks to Nick Thompson about the importance of networking.
Aged just 37, Nick Thompson was promoted to head of corporate finance at Moore Kingston Smith (MKS) last December. This latest move, however, is not the first impressive landmark in his career – he was made a partner at the age of 30. “My case for becoming partner was strengthened significantly by a successful track record of self-originating fees,” says Thompson. “For some it’s technical ability; others have strength and experience in developing the firm or department. But nothing helps your argument for becoming a partner more than bringing in fees.”
Possibly the most significant client in his case for promotion was Ridgewall, a managed print business, founded by CEO Dominic McAnaspie in 2011. In 2017, it embarked on an aggressive buy-and-build strategy targeting IT-managed services businesses.
Nothing helps your argument for becoming a partner more than bringing in fees
Thompson advised on four acquisitions in less than two years: Connecting London, Telnet International, Nomis Connections and QDOS. And in November 2019, just after making partner, he advised on Ridgewall’s MBO backed by Inflexion Private Equity. “They were a really significant client for me, impacting my accelerated promotion to partner.”
When he left the University of Birmingham with a degree in geography, Thompson definitely did not have a life plan mapped out. His parents were both chartered accountants. “I resisted the parental pressure to do a maths degree and then an ACA. But I always acknowledged the versatility of an ACA qualification. It certainly opens more doors than it closes.”
Up and running
His mother suggested he’d be more suited to a mid-tier firm rather than one of the Big Four. “She was right – I wouldn’t have enjoyed being a small cog in a big machine, or flourished.” So instead he joined the West End office of Kingston Smith, as the firm then was, in 2009. “It was a very different firm back then and if it had stayed the same I don’t know if I would still be here. The firm’s ambition and growth aligned with my personal ambition, which was exciting.”
He spent two years in audit, working with media and marketing clients, predominantly in London’s Soho. “It was an interesting client base,” he says. He initially scraped through his early exams, before realising that “minutes in revising equalled marks. There are no shortcuts – you can’t rely on cramming at the last minute.”
He loved the teamwork, the sector he was focused on and the range of clients, but he wasn’t cut out to be an auditor. Fortuitously, the partner Thompson primarily worked for was Mandy Merron, who spent 30 years with the firm and was dubbed the ‘godmother of media and marketing services’. She wanted to set up a media and marketing services corporate finance team and he was offered a place in it.
In 2012, the newly qualified Thompson reported to two partners and a manager. Of this time, he says: “The market wasn’t thriving and it was a slow first year or two in the corporate finance team.” He gave strategic advice, reviewed business plans and did financial modelling, and then due diligence and reporting accountant engagements. The team was not tapping into the audit client base and instead was winning fresh mandates. “The phone could go at any time and that really is part of the fun for me,” Thompson says.
One of the most notable early engagements was carrying out due diligence for M&C Saatchi on a couple of acquisitions. “In that sector it was such a big, well-known business to work for.”
Watching partners interact with clients on sell-side engagements and seeing the value put on their advice was a great experience. “As lead advisers it wasn’t restricted to just M&A advice. It’s much more holistic than that because everything was about owner-managed businesses. You’re selling their main asset. They will likely only do that once in their life and they are completely relying on your support.”
Just as Thompson became a partner in 2019, BDO acquired Moore Stephens in London, and Kingston Smith joined Moore Global, a network of independent firms, to become MKS. “This meant we now had access to global networks, were able to do international deals in different jurisdictions and provide advice on the tax aspects of those multi-jurisdictional deals. It was a step change for us.”
June 2023 was another significant month for the firm when it received investment from European private equity firm Waterland, with a view to “funding an ambitious growth and expansion programme”. Soon after that, it acquired Moore’s operations in Ireland and their corporate finance offering was being developed.
In June 2023 the firm acquired WMT, specialists in advising the hospitality sector. And in October it acquired Shipleys, specialists in the film, TV and animation sectors. The merger also strengthened the firm’s financial sector offerings with Shipleys’ funds team. “Over the past month, our new colleagues have referred three jobs to our due diligence team, which shows the potential opportunity from a corporate finance perspective we hoped would result from the acquisition,” says Thompson.
Always learning
Thompson says it was three years into his time in the MKS corporate finance team before the service line went into full-on growth mode; partners and other corporate financiers were brought in from other firms.
Over the past decade, the team has grown from five to 35. In 2015 John Cowie joined from Kreston Reeves. He’d previously spent 21 years at Smith & Williamson and was head of AIM. Nicola Horton joined from Crowe, where she was head of media corporate finance. More recently, Stephen Orriss joined from RSM and has brought his wealth of experience, which has been invaluable in developing the firm’s deal advisory approach.
“Our approach has been really great because we are keen to learn from other people,” says Thompson. “What were we doing that was good? And what wasn’t? We were able to develop our approach.”
Vital networks
To be successful, corporate financiers must build a network, says Thompson, adding that post-COVID-19 he has seen much less activity by juniors and managers in that regard: “They simply must do it for their future.” He also champions mentorship, having been mentored as well as mentoring himself (See Mentor mentored, page 25).
Since being made partner, he has led on 42 deals. The significant ones were the sale of Synergy Creative, a Bristol-based employee engagement agency, to McCann, which is part of IPG group; the sale of InSkin Media, a digital advertising business, to Azerion; and the sale of IT consulting services and outsourcing business Nuaware to Exclusive Networks in 2020. That last deal involved 70% of the equity being sold and in 2023 a further 30% of the equity being disposed of. “This was really challenging for negotiation and structure, and was the biggest deal I’ve done.”
Another significant buy-and-build client supported his case for becoming head of corporate finance. He led buyside advice assignments to Prime Networks, an IT-managed services business, on its acquisitions of Control Esc, G3 Solutions, TNSC, Solutions Support and Quintech, between 2020 and 2025.
Mentor mentored
Thompson is a strong advocate of the structured mentorship available to staff at MKS. His career was influenced significantly by his first mentor, Francis Mainoo, who also worked at Grant Thornton, and sadly died in 2023: “He basically told me to get out more and build my network strategically. His advice was you must make others look like a rock star, as they will always remember that.” His current mentor is Joanna Keeling, who is external and helps with the firm’s training. He mentors a manager in the insolvency department. “I learn as much from being a mentor as being mentored. It is so useful getting different perspectives.”
M&A outlook
Thompson says that at the start of 2023 he would have guessed the 18-month outlook for mid-market M&A was patchy at best. “However, 2024 surprised us – deal volumes bounced back.” According to Experian there was an 11% year-on-year increase in deal volumes in the UK mid-market, making it the busiest year since 2018. “That momentum, particularly in Q4 of last year, gave everyone a shot of confidence,” he says. “But a lot of that was the usual flurry of pre-Budget activity.”
This year, so far, has been quieter. “That isn’t surprising after owner-managers’ valuation had expectations lowered by Chancellor Rachel Reeves’ Budget in October 2024. After the rush to close deals, driven to a large extent by expected tax changes, many businesses, investors and advisers have been catching their breath.”
So what does the next 18 months have in store for UK mid-market M&A? Despite the continuing on/off US tariff threat, Thompson says there has been a recent improvement in morale among advisers and businesses. “Many owners I’m speaking with actually say they are more confident now than a year ago.”
The pipeline of companies preparing to come to market is building up nicely
For businesses not particularly exposed to geopolitical turbulence, Thompson says there is now a more stable market and so owners are considering exits with more conviction. “The pipeline of companies preparing to come to market is building up nicely.” He says the sectors currently showing good prospects are technology, healthcare, business services and manufacturing. “In traditional non-tech sectors such as IT services or marketing services, buyers are extra interested if the target has a strong digital offering or a niche tech differentiator. No sector is immune to macro trends. Those who’ve embraced new tech or have recurring revenue models are getting a lot of interest.”
Embracing tech
In the short term, artificial intelligence (AI) might be more of a buzzword than a deal driver, “but it’s a buzzword every buyer asks about”, says Thompson. “In the immediate term, AI is a story you want to be able to tell, even if lightly, because it shows forward thinking, which may justify a valuation premium for an otherwise ordinary business.”
There will be greater interest in businesses that embrace technology and operational resilience, in both IT services and marketing, he says. “Buyers aren’t demanding full AI integration yet, but they are asking the question. If you can articulate how AI will improve your margins, service delivery or IP, it adds value.”
Valuations are more stable now. Multiples remain lower than the peaks of 2021, but “strong businesses with recurring revenue, profitability and digital edge still attract high multiples. The fundamentals for mid-market M&A are decent – stable pricing, plenty of buyer interest and gradually improving confidence.”
He expects an upswing in deal volumes that will start in a year or so, assuming rates and inflation stay steady. “More business owners – especially those who’ve held off during the recent uncertainty – will want to transact. On the buy side, PE dry powder needs to be deployed – platform acquisitions with follow-on bolt-ons will continue to dominate the mid-market.”
Team game
At MKS there are three service lines under the corporate finance umbrella: deal advisory, transaction services and debt advisory. The team operates nationally with a focus on London and the South East.
Thompson says a large part of his role as head of corporate finance is effecting change. Paul Winterflood, another young partner who has been with the firm 15 years, heads up media corporate finance and is a key member of the leadership team.
Around two-thirds of staff work on deal advisory, but transaction services revenue has grown 40% this year. Mike Orton, who joined from Mercer & Hole in 2023, has been driving the growth of the MKS transaction services team. He previously spent 15 years with Grant Thornton. Guy Taylor, meanwhile, heads up debt advisory services, having joined from Alantra last year.
Outside deal advisory, the firm is taking a more structure-focused approach to growing transaction services and debt advisory. “We are building a much more sophisticated origination practice, too,” says Thompson.
And what of AI in processes? “We have been using and developing our own AI in many of our business processes for years – and we’re now focused on how we can better leverage it to the benefit of our clients. Outside the Big Four we’re considered number one for audit automation, encouraged by Waterland.”
Thompson says the firm is always recruiting “exciting, interesting senior hires”. As a rule it does not hire from the Big Four below manager level, as their experience will be very different. But the firm brings in newly qualified staff from audit and has some ACA trainees in the team.
