Tenon's reasons to be cheerful

You will have noticed that the accountancy sector saw further consolidation recently when Baker Tilly decided to acquire the best bits of RSM Tenon, a publicly listed accountancy firm which has been suffering recently and in danger of breaching its banking covenants.

Anyway, economia asked me to speak Baker Tilly chief Laurence Longe about the deal.
His motives are interesting, but the takeover begs a further question about the prospect of further consolidation in the UK market. My sources tell me that there is discussion (there is always discussion) but there are also many obstacle which may prove too difficult to overcome - the big one of course being culture. This is especially the case in professional service firms which tend to be partnerships and therefore the product of the foibles and idiosyncrasies of their owners.

Anyway, have a look at what Laurence Longe has to say and let me know if you think more deals are on the way.

Laurence Longe: Why Tenon was attractive


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