Big four challenger DSW Capital raises £5m ahead of float on AIM

Professional services network DSW Capital has raised £5m and will float on AIM later this week.
Nicole Burstow, CFO, and James Dow, CEO of DWS CapitalNicole Burstow, CFO, and James Dow, CEO of DWS Capital
Nicole Burstow, CFO, and James Dow, CEO of DWS Capital

The mid-market, challenger firm, which has offices in Leeds, said that its admission to AIM will take place at 8am on December 16 with a market capitalisation of £21.4m.

DSW Capital owns the Dow Schofield Watts brand - a profitable, fast growing, professional services network which is rising rapidly up the sector rankings.

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Dow Schofield Watts said that its challenger model encourages diversity in traditionally male dominated services.

Just under a quarter (23 per cent) of Dow Schofield Watts partners are female. While this is similar to the levels seen at the big four firms, the majority of female partners at Dow Schofield Watts operate in corporate finance and transaction services, a practice traditionally dominated by male partners.

The group currently operates licensing arrangements with 19 licensee businesses with 82 fee earners, across six offices in England including Leeds and one in Scotland.

It trades primarily under the Dow Schofield Watts brand. The firm said that it provides a flexible and autonomous alternative to the traditional model of the accounting professional services firms.

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DSW Capital aims to scale up through organic growth, geographical expansion and additional service lines.

Originally established in 2002, by three KPMG alumni, DSW is one of the first platform models to disrupt the traditional model of accounting professional services firms.

DSW’s vision is for the DSW Network to become the most sought-after destination for ambitious, entrepreneurial professionals to start and develop their own businesses. Through a licensing model, DSW said it gives professionals the autonomy and flexibility to fulfil their potential.

It added that being part of the DSW Network brings support benefits in recruitment, funding and infrastructure and that DSW’s challenger model attracts experienced, senior professionals, predominantly with a big four accounting firm background who want to launch their own businesses and recognise the value of the Dow Schofield Watts brand and the synergies which come from being part of the DSW Network.

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The directors are targeting high margin, complementary, niche service lines with a strong synergistic fit with the existing DSW Network.

James Dow, chief executive of DSW Capital, said: “We are delighted to announce our IPO and Admission to AIM, which are important milestones for DSW Capital.

"The successful fundraise will support our strategy to capitalise on the substantial growth opportunities presented in the changing UK accounting market and our vision to become the most sought after destination for ambitious, entrepreneurial professionals to start and develop their own businesses.

“The success of our model is demonstrated by the rapid rise of the DSW Network up the sector rankings, which recently entered Accountancy Age’s Top 50 Accountancy Firms. We believe our new quoted company status will help raise the profile of DSW further, enabling us to accelerate the growth of our network.

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“I would like to thank all the licensees, partners and employees across the DSW Network for their hard work and commitment and our new investors for their support, as we enter the next phase in this exciting journey.”

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