RSM Tenon divisions could be trimmed

IN THE wake of Andy Raynor and Bob Morton's departure from RSM Tenon, there has been speculation that a review of the business by the new management team could result in divisions being trimmed from the company.

A search for Raynor's successor as CEO has already begun; Adrian Martin has been promoted to executive chairman with Jeremy Newman, the former global CEO of BDO International joining as a consultant. CFO Adrian Gardner, who joined the business in 18 October, has been leading a review of the firm's financial reporting

Justin Bates, analyst at Keefe, Bruyette & Woods, says the outlook for Tenon is going to be tough for some time and expects to see cutbacks.

"There needs to be a resizing of the business," he says. "You could see a potential break up of certain divisions that don't sit neatly with the business."

Another City analyst suggested that some of the resetting of the company "must go out to the insolvency business. It was grown on an expectation of a tidal wave of receiverships that didn't happen. It needs to be trimmed."

Gardner told Accountancy Age that the new management team would be reviewing the business, but that does not mean they are actively considering hiving off any divisions.

"In a sense we are a new management team so everything has to be on the table, we can't rule anything out," he says.