Audit Commission off RSM Tenon's radar

AN OUTRIGHT acquisition of the Audit Commission has been ruled out by RSM Tenon chief executive Andy Raynor.

Speculation about the future of the commission has included its possible purchase by an accountancy firm involved in public sector work. The Financial Reporting Council suggested its sale could provide a boost to a smaller firm and open up audit competition.

Raynor said that that the biggest firms involved in local government services, including RSM Tenon, would struggle to deal with the conflict issues that would arise with an outright acquisition.

Instead, the more likely option for the commission would be a management buy-out.

"Having reviewed it, our view is that the Audit Commission is more of an opportunity for an MBO. That would probably be the best plan," said Raynor.

Some extra work might become available for RSM Tenon from the commission's sale, he added.

Yesterday the firm announced increased turnover and profits, but its share price fell back with Raynor blaming an increase in the firm's work in progress.