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June 29, 2010

RSM Tenon acquires £7m of Vantis assets

UK consolidator RSM Tenon has acquired substantial assets of Vantis after the firm announced it was entering administration.

Vantis, an Alternative Investment Market-listed accounting business and member of HLB International, went into administration on 29 June due to its inability to reduce its spiralling debt.

The RSM Tenon acquisition is worth £6.8m ($10.2m) and includes Vantis’s London, Epsom, and Leicester advisory offices, the national financial management operations and the Thames Valley recovery office.

RSM Tenon said 300 Vantis staff will join its existing teams, adding up to an estimated £27 million to the firm’s annual fee income.

RSM Tenon will make an initial payment of £5.7m in cash on completion and deferred payment of up to £1.1m payable in cash subject to, and upon, the realisation of certain debtors purchased as part of the acquisition.

The directors of RSM Tenon said they anticipate that after adjusting for integration costs, the acquired assets will increase their earnings in the first full year of RSM Tenon’s ownership.

The integration could take up to six months to complete.

A good deal

The deal will provide a significant amount of extra audit, tax and advisory work across the three locations, especially to RSM Tenon’s London arm.

Vantis’s Thames Valley recovery business offers restructuring, turnaround and insolvency services to mid-sized corporate businesses and the acquisition will help increase RSM Tenon’s market share in what it sees as an important area.

The acquisition of the financial management operation will push RSM Tenon’s current financial management division into the top 20 nationally, with more than 300 staff operating from offices across the UK, RSM Tenon said.

RSM Tenon group chief executive Andy Raynor said joining Vantis’s operations with RSM Tenon’s would create “a seamless fit”.

“We have always admired the underlying businesses within Vantis, continuing to deliver outstanding client service to entrepreneurs despite the difficulties of the holding company. The resilience and skill of the people joining our teams is reflected in their loyal client following,” Raynor added.

The acquisition is the second major recent integration for the group after Tenon and RSM Bentley Jennison merged in December 2009 to create RSM Tenon with annual fee income of £250m and 3,000 staff.

“With acquisitions in the last six months totalling almost £100m of potential revenue, RSM Tenon has demonstrated the ambition for growth that we have always encouraged in our clients,” Raynor said.

“Our ability to act quickly in completing this advantageous transaction has been aided by the continuing successful integration of our earlier RSM Bentley Jennison acquisition. Processes created and tested in that merger will be activated immediately by our dedicated teams.”

 

Related articles

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‘Vantis reorganisation assured’: HLB International

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Vantis considers restructuring

Vantis receives going concern warning

Stanford delays lead to Vantis going concern

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