UPDATES

Spotlight on professional and business services

ICAEW and the Corporate Finance Faculty hosted a round-table event at Chartered Accountants’ Hall with the British Business Bank on 30 July. Chaired by Stephen Welton CBE, chair of the bank, member of the faculty board and former CEO of the BGF, it was one of a series of round tables the bank is holding around the country to shape sector-specific investment strategies under the UK government’s Industrial Strategy, more detail of which was announced in June 2025. 

The specific focus of this round table was the professional and business services (PBS) sector, which ‘plays a foundational role in enabling innovation, productivity, and growth across the wider economy, and is a critical engine for high-value jobs and exports’.

As well as substantial representation from ICAEW and the bank, the session involved senior voices from accountancy, consultancy, legal and business advisory services, and investors. Faculty member firms Agathos, the BGF, Cooper Parry, Deloitte, EY, Grant Thornton, RSM and S&W were represented.

The key objectives of the round table were to:

• identify where capital and innovation can unlock productivity and scale within the PBS sector;
• understand the growth dynamics for SMEs in the sector;
• explore the sector’s role in driving digitisation and financial resilience;
• strengthen the bank’s stakeholder engagement model for PBS;
• use insights to build an investable growth and innovation strategy; and
• feed into the bank’s corporate five-year strategy.

Recruitment was identified as a key issue for the sector. Firms need to be able to attract people with the right skills and qualifications, as well as upskill and retain staff. They also need funding to invest in technology and staff training to keep up with the pace of change: the cost of software; training in AI tools for new and existing staff; data centres; and modernisation of existing premises. 

Meanwhile, red tape in the UK was seen by some as a barrier to growth and certain government policies were identified as “not helpful”.

It was noted that private equity investment was not suitable for all firms in the sector. Crucially, auditor independence must be maintained. Firms that had recently taken on private equity investment said the focus was no longer on maximising profit in the current year, but over a three-to-five-year planning horizon. 

Many firms in the sector, large and small, said they wished to retain control of their business through the traditional partnership structure and continue to grow the business for the long term.

The faculty will continue to input member’s views as the bank develops its strategy for the PBS sector.

Consultations

The Takeover Panel is consulting on the application of the Takeover Code to companies with dual-class share structures during IPOs and share buy-backs. The Corporate Finance Faculty will be responding to the consultation. Please send responses for inclusion to Katerina Joannou by 18 September 2025.

The faculty is responding on behalf of ICAEW to the Financial Conduct Authority consultation on the Senior Managers and Certification Regime. Send comments to Katerina Joannou by 30 September 2025.

The UK government is consulting on proposed changes to acquisitions that qualify as notifiable acquisitions under the National Security and Investment Act Regulations 2021. The faculty is responding; send comments for inclusion to Katerina Joannou by 6 October 2025.

FUTURE EVENTS

Dates for the diary

22 September and 15 October

The Corporate Finance Faculty is hosting two one-hour AI webinars. The first on 22 September at 12:00 introduces off-the-shelf AI tools for M&A, with Graham Dotchin, corporate finance partner and head of data analytics and AI at Azets. The second on 15 October at 12:00 is on the use of proprietary AI tools in M&A, with speakers Jan Chan, AI lead at EY, and Toby Popplewell, PwC GenAI leader.

13 November

The Corporate Finance Faculty’s Annual Reception will be held at Goldsmiths’ Hall. Guest speaker this year will be veteran private equity investor, Jon Moulton CBE.

10 December

The launch of the Corporate Finance Faculty’s guideline HR Due Diligence, authored by Deloitte, will be at Chartered Accountants’ Hall.

Find out more about these and other Corporate Financer Faculty events.