Sale of Consultancy Firm Behind Manchester United Cost-Cutting Effort

The consultancy that oversaw a controversial cost-cutting effort at Manchester United Football Club is being sold in a deal worth more than £800 million. Bridgepoint, the London-listed buyout firm, has agreed to buy a majority stake in Interpath Advisory.

Details of the Sale

A deal could be announced as early as Monday morning, according to banking sources. Bridgepoint’s agreement to buy Interpath from fellow private equity firm HIG Europe will come after a closely contested auction that should lead to a second round of bidding later this month. Other bidders expressing interest in acquiring Interpath included Blackstone, Onex, PAI Partners, and Permira.

Background of Interpath Advisory

Interpath was spun out of KPMG UK in 2021 in a transaction triggered by the changing regulatory environment in the accounting industry. Growing concerns about conflicts of interest between the audit and advisory arms of accounting giants have been exacerbated by the collapse of companies such as BHS and Carillion, leading to a series of sales by Big Four firms.

Notable Clients and Mandates

Interpath has advised on a number of significant restructuring and cost savings mandates for clients, including as administrator for the UK and Irish subsidiaries of Claire’s, the accessories retailer which collapsed last summer. The company will now act as administrator of the UK arm of casual dining chain TGI Fridays and is also advising family-run shoe retailer Russell & Bromley on a potential sale. Additionally, Interpath was recruited to help cut costs at Manchester United FC following its acquisition of a stake in the Premier League club.

Impact of the Sale

The sale of Interpath to Bridgepoint is the latest in a wave of acquisitions in the UK professional services and financial advisory sector, as private equity investors seek new business opportunities in a high-margin sector of the economy. Sources said Interpath has doubled its earnings before interest, taxes, depreciation, and amortization since HIG Europe acquired the company four and a half years ago. The company recently published financial results showing a 26% increase in sales to almost £200m.

Future Plans and Leadership

The CEO of Interpath expressed that although the company is only four years old, it has a clear vision to become one of the world’s leading advisory firms and has made tremendous progress towards this goal. The CEO and other senior executives are expected to retain a stake in the company after the Bridgepoint deal closes. HIG Europe was advised by Moelis bankers during the auction.