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It’s business as usual for RSM Tenon as deal is finalised
NORMAL service will continue at the Basingstoke office of accountancy and business advisory firm RSM Tenon while the sale of the company’s trading subsidiaries to Baker Tilly is finalised.
Both firms have offices in Basingstoke, with RSM Tenon employing around 40 people at its Vantage base, in Victoria Street and Baker Tilly employing 36 people in Basing View.
The deal, for an undisclosed sum follows RSM Tenon Group plc going into administration last Thursday after acquisitions left the parent company saddled with heavy debts worth £80million.
Deloitte have been appointed administrators of RSM Tenon Group plc and have said the firm will continue to operate as usual with no job losses expected.
However, once the deal has been completed, there will be a review of how best to integrate the two businesses.
In light of Deloitte’s appointment, trading in RSM Tenon Group plc’s shares on the London Stock Exchange was suspended.
Matt Smith, joint administrator and restructuring services partner at Deloitte, said a sale of RSM Tenon Group plc’s trading subsidiaries to Baker Tilly was expected to take place by the end of next week, following regulatory and internal approval at Baker Tilly, which should be a formality.
He said: “We believe the proposed sale to Baker Tilly represents the best outcome for the RSM Tenon Group. The management of the group have stabilised the business, returning it to profitability over the past 18 months and making this transaction possible to secure its future.
“In the meantime we are working closely with the directors of the trading entities and their management and staff to continue to support the business until the sale is completed.
“We appreciate the cooperation and support from the staff, customers, suppliers and landlords during this period.”
Laurence Longe, Baker Tilly’s national managing partner said the acquisition allows for the ongoing success of RSM’s Tenon’s profitable trading businesses, free from the burden of RSM Tenon’s historic debt obligations, as part of an enlarged and financially strong Baker Tilly group.
Mr Longe said he believed this is an excellent outcome for RSM Tenon’s clients and employees.
Mr Longe, said: “As a people business, the key asset of RSM Tenon has always been its highly skilled and professional workforce of partners and staff.
“Baker Tilly and RSM Tenon are businesses of a comparable scale operating in similar markets across the UK and internationally, and so combining our strengths and skills will provide us with new opportunities for growth.”
It is understood that RSM Tenon’s non-executive directors have left the company.
Chief executive Chris Merry and chief financial officer Adrian Gardner are to stay on to help with the integration of RSM Tenon into Baker Tilly.
In January 2012, it was revealed that RSM Tenon had overstated its results, leading to a profit warning and the departure of chief exec Andy Raynor.
RSM Tenon is the seventh largest accountancy and business advisory firm in the UK, employing approximately 2,500 people across 38 offices.
It was also the only accountancy firm listed in the UK.
Baker Tilly has more than 1,600 employees and over 220 partners in 25 offices across the UK generating a fee income of £171 million.
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