Baker Tilly buys competitor RSM Tenon out of administration
AIM-listed auditing specialists acquired following major debt crisis
Auditing and advisory company RSM Tenon, floated on the AIM market, has been bought out of administration by the UK arm of rival accountancy firm Baker Tilly.
The advisory company were plunged into administration after a failed attempt last week to secure an offer from Baker Tilly to rid them of heavy debts.
The deal sees the company’s trading entities acquired by Baker Tilly after being sold by administrators Deloitte.
Founded in 2000, RSM Tenon is one of the UK’s largest auditor by fee income networks providing risk advice, financial management, tax, restructuring and audit services to clients across the country.
In recent years it has struggled with a series of accounting errors and profit issues which saw chief executive Andy Raynor exit the company in January 2012.
Last October the company published a £102m annual pre-tax loss and has seen shares continually decrease leading to its suspension from the stock market last week on Thursday 15 August.
As the accountancy firm’s assets were sold the deal will not benefit its shareholders, including sole tender Lloyds Banking Group, and it is predicted that shares in the company are now worthless.
Baker Tilly are not yet able to say whether RSM Tenon’s 2,300 employees will remain. The new owners commented: “Following completion, we will be forming an integration team and reviewing how best to integrate the business.”