Accounting firms and tax advisory practices in the Spanish middle market are, paradoxically, the most effective and least recognised investment intermediaries. We explain why and how we work with them.
There is a player in the Spanish business ecosystem that middle-market investors systematically underestimate: the accounting firm. That local tax advisory practice managing the books of two hundred companies in a province, knowing every entrepreneur by name, knowing exactly how much each one turns over, earns, and how many problems they have.
The major M&A firms look for deals in databases, networking events, and calls to corporate CFOs. We find some of our best deals through small-town accounting firms.
Privileged access. They have access to real financial information — not the polished version, but the actual numbers.
Trust relationship. When the firm recommends speaking with an investor, that recommendation carries the weight of years of professional relationship.
Timing awareness. They know when an entrepreneur is thinking about retirement, when a company starts having cash flow problems, when a founder is tired.
Territorial distribution. Spain has over 80,000 accounting and tax advisory firms distributed across the entire territory. Each one is an access point to local businesses.
The accounting firm does not need to be an M&A expert to identify situations where an investor can add value. The indicators are clear and form part of the information they already handle in their daily work.
Entrepreneurs approaching retirement. When a long-standing client of 60 or 65 starts asking how to “put things in order” or talks about reducing activity, the firm is looking at a potential business succession process. If there is no clear family successor, a sale to a professional investor may be the best solution for the owner, the employees, and the business.
Companies with growth limited by lack of capital. The firm managing a company’s accounts knows perfectly well when the business generates profits but does not grow because the owner lacks the capital to invest — in technology, sales, or geographic expansion. This is an ideal profile for a growth capital investor.
Companies with recurring liquidity problems. When the firm sees that a company consistently struggles to meet payroll or tax deadlines, it knows there is a structural capitalisation problem. Before the situation becomes insolvency, an investor can provide the solution.
Shareholder conflicts. The firm is often the first to detect tensions between partners — disagreements about business direction, profit distribution, or individual commitment levels. The entry of an investor buying out one partner’s stake can resolve the conflict and unlock the company’s potential.
Our relationship with accounting firms is based on three principles refined over years of collaboration.
Professional respect. The accounting firm is not a “minor intermediary.” It is a professional providing an essential service to the entrepreneur, with knowledge of the local market that we do not have. We treat them with the same respect as an M&A adviser from a major firm. When a firm introduces us to an entrepreneur, we guarantee absolute confidentiality and dignified treatment — regardless of whether the transaction materialises.
Transparency about our criteria. We explain clearly what type of company we seek — sector, size, profile, situation — so the firm can identify relevant candidates. We do not expect them to guess our criteria. We provide a summary sheet with our investment theses and the type of transactions we look for, giving the firm a clear reference.
Recognition of value contributed. If a firm introduces us to an opportunity that becomes a transaction, we recognise that value. Financially when appropriate and accepted, but always through an ongoing collaborative relationship that benefits both parties. Many firms value the long-term relationship — knowing they have a serious investor to whom they can refer clients in complex situations — more than a one-off fee.
We ask three simple things of the firms that collaborate with us.
Absolute discretion. The entrepreneur should not know the firm is speaking with an investor until the entrepreneur themselves has expressed interest or need. The trust between firm and client is sacred, and we will not jeopardise that relationship.
Truthful information. When a firm presents an opportunity, we need the information shared — always with client consent and within the legal framework — to be realistic. We do not need inflated numbers or polished narratives. We need reality, with its strengths and its problems.
Judgement. Not every company is a candidate for an investment transaction. We ask firms to apply their own professional judgement before presenting an opportunity. To ask themselves: “Does it make sense for this entrepreneur to speak with an investor?” If the answer is yes, we are available.
The Spanish middle market needs a more developed intermediation ecosystem. In markets like the Anglo-Saxon one, there are hundreds of M&A boutiques specialising in the lower middle market that channel deal flow efficiently. In Spain, that ecosystem is beginning to form but is still insufficient.
Accounting firms can — and should — be part of that ecosystem. Not as M&A advisers (that is not their speciality) but as opportunity detectors and first-contact facilitators. An M&A adviser structures the deal and negotiates the price. The accounting firm does something no M&A adviser can do: generate the initial trust that allows the conversation to start.
In other countries where this collaboration works — Germany, the Netherlands, the UK — tax advisers and accountants are a significant source of deal flow for middle-market investors. Not the only source, but one of the most efficient due to the quality of information and the pre-existing trust relationship.
For this to work in Spain, three things are needed: investors who treat accounting firms with respect, firms that trust there are investors who treat entrepreneurs well, and entrepreneurs who are open to exploring their options.
When this ecosystem works, everyone benefits: the entrepreneur finds the solution they need, the accounting firm strengthens their client relationship, and the investor finds quality opportunities.
Are you an adviser, lawyer, or consultant with a client in a similar situation? Contact us.
See also: AI in the traditional company · How to sell a company in Spain: essential guide · The commercial lawyer as an ally · Business succession and the family office · The first step to selling.
Dirk Manuel Martens Jimenez Founder, Blue Mountain Capital
Founder of Blue Mountain
Over 15 years investing in Spanish companies with patient capital. Expert in business succession, corporate governance, and middle-market investment.
By Blue Mountain Capital
By Dirk Manuel Martens Jiménez
By Dirk Manuel Martens Jiménez
If you wish to explore a potential collaboration or present an investment opportunity, we invite you to contact us. We guarantee absolute confidentiality in all our conversations.