Mid-tier firms Grant Thornton and RSM Robson Rhodes have agreed to merge their two businesses in an effort to create a firm to take on the Big Four.
The new group, which will be called Grant Thornton UK, will retain its position as the fifth biggest firm in the UK with over 300 partners and 4,400 staff operating from 33 locations. The deal is expected to be completed on 1 July.
‘RSM Robson Rhodes represents a perfect fit for Grant Thornton,’ said Michael Cleary, CEO of the newly merged business.
‘We have considerably added to our firepower to consistently challenge the Big Four in key areas,’ he added.
‘It is also a boost to our efforts to break down those market perceptions which would not naturally associate Grant Thornton with the larger public audit market. We are now gearing ourselves to stimulate competition and offer stakeholders greater choice in this space.’
Income from both firms will create an accountancy business worth £369m, still a long way short of the smallest Big Four firm Ernst & Young which currently earns around £1bn, and is expecting double digit growth this year. PwC, the largest of Big Four players is approaching earning of almost £2bn, in the Uk alone.
David Maxwell, managing partner, RSM Robson Rhodes said: ‘This merger creates class leading teams in audit and tax as well as in the specialist areas of project finance, corporate finance, forensic and corporate restructuring to name but a few.
‘It further boosts our dominant role on AIM, that of leading auditor within the public sector and biggest auditor of stock market companies outside of the Big 4. People, both clients and staff, want to work with the best in the business and that is what drives this merger.’
Further reading:
BDO Dunwoody and Grant Thornton to merge
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