Mid-tier accountancy firms have given the thumbs down to the prospect of signing up to the UK's first accountancy consolidator - due to launch next week - and which has predicted it will acquire 12 such firms over the next 18 months.
Ian Buckley, chief executive of Tenon, formed from capital raised by stockbroker Raphael Zorn Hemsley, said he expected a raft of acquisitions to be made during the summer with further additions before the end of next year. He added the number of mid-tier firms is set to shrink over the next five years.
Meanwhile the company is believed to have held talks with 40 firms over the last 12 months as part of its bid to build the business services group.
However a spokesman for Pannell Kerr Forster, said: ‘We wish to carry on with our organic growth policy and do not want to be part of any mid-tier consolidation.’
HLB Kidsons national managing partner, Peter Douglas, said the consolidation would be targeting smaller firms, with turnovers in the region of £5-£10m, but admitted the new company could become capable of becoming serious competitors.
He added: ‘We are certainly not in any consolidation related discussions, but we will be watching with interest to see if the project gets off the ground and is successful. Similar moves in the US have so far not been a roaring success. However success is doable for Tenon and we will see if and how the project can become an adhesive unit capable of accessing its pool of resources and what affect this will have on the market.’
Maurice Fitzpatrick, Chantrey Vellacott spokesman said the firm had not received any contact from Tenon, while a senior partner at Horwath Clark Whitehill, said the firm was unable to comment on the issue.
EXCLUSIVE: Mid-tier shake up as accountancy consolidator launched today goes after 12 firms