Discussions between the two mid-tier firms have been plagued by a number of set backs since the deal was proposed in June last year. National managing partners from both firms put the decision down being unable to override the complexities involved in the deal.
David McDonnell, Grant Thornton national managing partner, said: ‘We had a record year last year and our strong performance continues in the first six months of the current year. We have a proven strategy for expanding Grant Thornton’s market leadership by delivering more of the core and value added services demanded by clients.’
Stumbling blocks to the plan are understood to have included the fee differentials between the two firms and duplicated services and regional offices.
Grant Thornton generates on average fees per partner of £665,000 while the Kidsons’ figures lies much lower at £484,000. The larger firm registered growth of 10.1% last year, while Kidsons saw only 1.5% growth.
Alternative merger deals for Kidsons however, might still be in the pipeline.Ray Greatorex, national managing partner at Kidsons, said: ‘We will continue to implement the strategy that we set out in our three year development plan ‘from strength to strength’. We have had an excellent first half-year. We will continue to build on this and develop our people and services to help our SME clients grow and achieve their objectives.’
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