Why Is Goldman Sachs Betting Big on AAB?

“Shoot for the moon. Even if you miss, you'll land among the stars.” That might as well be AAB’s new motto as the UK-headquartered professional services firm maps out a bold new chapter with Goldman Sachs Alternatives riding shotgun. So, what’s the big deal? Well, it’s not every day you see a mid-market accounting player that started in Aberdeen plotting a fourfold revenue jump and partnering with one of the world’s most deep-pocketed investment houses. Let’s unpack the numbers, history, and what this means for the broader advisory world.

Once a Small Shop

Back in 1990, AAB was a modest firm founded by Mike Brown and ex-EY pros Bobby and Sheena Anderson. Fast-forward 35 years, and the firm has grown from a £600,000 operation into a £100 million ($135 million) revenue juggernaut as of January 2025. That’s not a fluke. Since 2021, AAB has been under the wing of August Equity, a London-based private equity outfit that helped them scale up fast, think 16 acquisitions in under four years, more than 1,000 employees, and a footprint that stretches from Aberdeen to Manchester to London.

Their growth under August was pedaled to the metal. In CEO Emma Lancaster’s words, it was a “transformational” partnership that helped AAB supercharge its talent, technology, and service offerings. But now? AAB is hungry for more, and that means bigger capital, bigger ambitions, and a new private equity partner.

Deep Pockets, Big Plans

Goldman Sachs Alternatives, the investment division of Goldman Sachs managing $450 billion in assets, has agreed to acquire AAB from August Equity. The deal is still awaiting regulatory green light and is expected to close later in 2025. For Goldman Sachs, it’s not just another notch on the belt. AAB is now a Top 25 UK accounting firm, and Goldman sees untapped potential in the UK and Irish mid-market space. Jose Barreto, Partner at Goldman Sachs Alternatives, put it plainly: “We see AAB going from strength to strength.” His colleague Mihir Lal doubled down, emphasizing confidence in AAB’s continued growth through tech enablement and ongoing M&A. Let’s not forget Goldman Sachs itself brought in $46.25 billion in revenue last year (2024), so throwing weight behind a £100M firm signals real belief in its future.

Fourfold Growth? That’s the Goal

Here’s the kicker: AAB isn’t stopping at £100 million. Lancaster is shooting for £400 million in turnover within five years. That’s a hefty goal, but with Goldman backing the truck up, it’s not out of reach. Lancaster laid out clearly: “August took us £100m. Now we’re ready for the next phase... Goldman Sachs means more opportunities for everyone.” And it’s not just about throwing cash around. AAB plans to supercharge its digital stack, think AI, automation, and emerging tech. But Lancaster’s making it crystal clear: this isn’t about robots replacing people. It’s about cutting the grunt work so accountants can focus on the good stuff. As she put it, “AI is like Excel back in the day. It doesn’t eliminate jobs, it upgrades them.”

Why This Deal Hits Different

Let’s face it: PE deals in professional services aren’t rare anymore. But this one stands out for a few reasons:

• Rapid-fire execution: 16 acquisitions in 3 years? That’s not slow and steady; it’s more like a NASCAR pace.
• Culture & continuity: Despite the ownership changes, AAB’s leadership is staying put. Lancaster and her team are steering the ship, not just posing for press releases.
• Mid-market muscle: AAB’s sweet spot isn’t chasing global conglomerates; it’s dominating the underserved mid-market. That’s where Goldman sees real value.

And if you’re a finance pro keeping score, you’ll recognize this move for what it is: a bet on scale, integration, and staying power in a market that’s still ripe for consolidation.

So, What Should You Watch Next?

AAB’s next five years are going to be all gas, no brakes. Expansion across the UK and Ireland, a headcount that’s likely to soar well beyond 1,000, and a tech stack that could rival some of the bigger global players. The firm’s service line depth, ranging from audit and tax to payroll, HR, and wealth advisory, gives it room to cross-sell, up-sell, and bundle like a pro. If they pull this off, £400 million might not be a pipe dream after all. Bottom line? This isn’t just another PE deal. It’s a power move that could reshape how mid-market advisory firms scale up in the AI era. So, whether you're crunching numbers or scouting for the next M&A target, keep an eye on AAB. They’re not just riding the waves; they’re building the surfboard. Power your CPE and strategy with curated news from MYCPE ONE Insights. Subscribe today.