Baker Tilly yesterday (2 September) formally confirmed the acquisition of “profitable trading subsidiaries” of RSM Tenon group.
Embattled accountancy firm RSM Tenon entered administration on 22 August, after sole lender Lloyds Bank withdrew its support.
Upon the appointment of administrators, rival firm Baker Tilly immediately acquired trading subsidiaries of RSM Tenon, after announcing to the London Stock Exchange it would not be making a formal offer for RSM’s share capital.
Following official confirmation of the deal, a statement from Baker Tilly said RSM Tenon will continue trading under its name for a “short period of time while a rolling programme of integration gets under way to seamlessly create one newly merged firm operating as Baker Tilly.”
The statement also confirmed the 2,300 strong workforce of RSM Tenon would not be in danger of redundancy as a result of the sale.
Laurence Longe, Baker Tilly’s national managing partner, said: “This merger is an excellent outcome for the clients, partners and staff of both firms.
“Bringing the professional skills, strengths and expertise of Baker Tilly and RSM Tenon together as one firm will significantly enhance our offering to the market and provide further opportunities for growth both nationally and internationally.”
On 16 August RSM Tenon announced to the LSE that shareholders would likely only receive “minimal value” due to the company’s high debt levels, in the event of a deal taking place.