Baker Tilly UK is to join RSM International, several months after it bought major parts of troubled RSM Tenon in a pre-pack deal.Baker Tilly UK will formally join RSM International later this year on completion of a notice period with the Baker Tilly International network.
During the transition period, the firm will continue to trade as Baker Tilly UK, "but will disclose prominently that it is an independent member of RSM International, after which the firm will then formally adopt the global network name and corporate identity".
The Baker Tilly UK and RSM Tenon tie-up deal created a firm of 3,500 partners, reporting fee income of more than £300m ($364m).Jean Stephens, chief executive of RSM International said Baker Tilly UK and RSM International took their time to meet each other and there is a natural alignment with RSM with respect to core values, focus on quality and aspirations for growth and development."
"In reaching this decision, we have engaged in an in-depth mutual due diligence process. The Baker Tilly team has met with RSM members in Asia-Pacific, Latin America, Europe, Africa and the US and it’s clear there is a strong cultural fit and alignment in vision and purpose. I am delighted Baker Tilly will be joining the RSM network as our UK member firm. Their admission will be of significant benefit to clients of RSM member firms across the globe."
Baker Tilly UK managing partner Laurence Long said the move is "in the best interests of our clients, partners and staff".
Speaking to the International Accounting Bulletin Long said that there are similarities between the Baker Tilly International and RSM International network, "however one of the most obvious differences is that in the RSM network the largest firm in the US in the mid-tier is an RSM member firm, whereas Baker Tilly International is represented by some 13 members."
Overall, RSM is ranked as the seventh-largest international network globally with fee income of $3.7bn for the year ending 31 December 2013, followed by Baker Tilly International with $3.4bn in fee income for year ending 30 September 2013, according to the latest IAB World Survey ranking.
With the addition, RSM International has filled the gap in the UK market it had since the deal between RSM Tenon and Baker Tilly UK, however it leaves Baker Tilly International searching for a new UK member.
Baker Tilly International chief executive and president Geoff Barnes said: "The board of Baker Tilly International is disappointed that the UK firm has decided to leave the network. However, the network is stronger than any single firm; we have been considering this eventuality for some time and evaluating the options available to us in order to ensure continuous seamless service to our clients. An announcement will be made once the formalities relating to a new member firm are completed"
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