View more on these topics

Jobs at risk as Baker Tilly acquires RSM Tenon

The Platforum table

Baker Tilly acquired rival RSM Tenon last week shortly after the firm had gone into liquidation.

In July, Baker Tilly announced it was in talks to buy the professional services firm, but in a statement to the stock market last week, Baker Tilly said it was pulling out of a potential deal.

Lloyds Banking Group informed RSM Tenon on Thursday that the firm was likely to break its banking covenants and three insolvency practitioners from Deloitte were appointed as administrators.

Baker Tilly subsequently bought all of RSM Tenon’s trading subsidiaries, including the advice arm, from the administrators. No price has been made public.

A Baker Tilly spokesman says once the sale is complete an “integration team” will be set up to review the acquisition. He says the firm can “make no guarantees” on future job losses, although Deloitte says no job losses are expected.

RSM Tenon made a pre-tax loss of £7.5m for the six months to 31 December 2012, compared to an £83m loss in the same period in 2011.

In December, Tenon shareholders voted to drop PricewaterhouseCoopers as the firm’s auditor after a regulatory investigation was launched into accounting errors at the firm.

Last year, HgCapital made a 43p-a-share cash offer valuing Tenon at £140m, but backed out of the deal after bringing in Deloitte to conduct due diligence. On the day of Baker Tilly’s acquisition Tenon was valued at 1.12p per share.

Anand Associates financial architect Bhupinder Anand says: “It is a smart move by Baker Tilly because this way they acquire RSM’s substantial client banks and staff without the burden of the debt.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com