The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP064: Kelly Partners Group: The Constellation Software of Accounting? w/ Daniel Mahncke & Shawn O’Malley
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Mar 22, 2026 A deep dive into Kelly Partners’ founder-led push to build a global accounting network and the 51/49 partner-owner acquisition model. They explore how the model boosts margins, succession solutions, and the size of the addressable market across AU/UK/US. AI’s upside and threat for tax and advisory work gets debated. They also weigh acquisition filters, cultural fit, and the limited pool of high-quality targets.
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Partner Owner Driver Model Powers Growth
- Kelly Partners is a network of chartered accountancy firms using a partner-owner driver model where KPG takes 51% and original partners keep 49% to preserve incentives and client trust.
- Daniel compares KPG to Constellation Software but notes KPG keeps decision-making more hands-on and focuses on accounting firms, not vertical market software.
Buy Cheap And Stage Seller Payments
- Aim to buy at mid-single digit EBITDA multiples and stage payouts to keep sellers engaged and limit overpayment risk.
- KPG pays one-third up front and two-thirds after two years while acquired firms pay a 9% fee to cover services and IP.
Margin Lift Comes From Time Shift To Advisory
- KPG targets doubling EBITDA margins of acquired firms by cutting costs and shifting partners to higher-margin advisory work.
- They claim partners spend ~40% more time on advisory after joining, lifting group EBITDA toward ~35% target.
