Tenon Group, a UK member firm of Morison International, has acquired Professional Assurance Services (PAS) to strengthen its business in the East Midlands region. The acquisition cost Tenon about £6 million ($12.7 million) in a cash and shares deal.
PAS was established in 1971 and specialises in financial and investment advice for large businesses. It has 40 staff, including eight directors, and turnover of about £4 million. PAS will be merged with Tenon’s Leicester and Nottingham offices and will trade under the name Tenon Financial Services (TFS).
Andy Raynor, chief executive of Tenon, told IAB: “We’re trying to provide a complete suite of services to self-made men and women, to entrepreneurs.”
Tenon said it targeted PAS due to its strong reputation and a familiarity between the firms.
Raynor hopes the addition will generate another £1 million in profits for the group each year. He said: “[We have] a super client base demanding financial services. We didn’t have the capacity to service it and that is really what PAS is for. In the north-west we are the biggest accountants by far outside of Manchester. In the East Midlands we are third largest, including the Big Four.”
He said the group could continue to build through more “sensible” acquisitions. The firm’s strategic plan is to build its brand in the regions it dominates.
Keith Douglass, managing director of PAS, said joining a firm such as Tenon was a natural progression for the smaller firm: “Tenon has a clear strategy as the leading adviser to entrepreneurs and we feel that our clients can benefit from the additional resources provided by Tenon. As part of a national organisation, we have access to a whole range of expertise and support from a range of specialist advisers.”