PracticeConsultingTenon acquires first accountancy firm

Tenon acquires first accountancy firm

Tenon, the first UK quoted accountancy-based business services company, today announced its first acquisition - the non-audit business of Morison Stoneham - with further announcements expected shortly.

The deal valued the firm – 31 in the Accountancy Age Top 50 – at £10.25m. The total will be paid with £6.36m from the issue of 5.36 million new ordinary shares in Tenon and the balance of £3.89m in cash.

The acquisition represents the first move by Tenon as it attempts to become a business services group.

Ian Buckley, chief executive of Tenon, said: ‘Morison Stoneham is a growing and profitable firm with a strong client base and reputation.

‘This acquisition represents the first step in our strategy of establishing a broadly based business services group. We are confident that we can build on Morison Stoneham’s growing profit trend through increased investment and active marketing.

‘We continue to have discussions with a number of high-quality practices who are interested in becoming part of Tenon. We remain committed to establishing a new type of business services group that will have a major impact on the UK accountancy profession.’

Morison Stoneham has offices in London, Chelmsford, Guildford and Swindon.

It had a turnover including audit services, which are not being acquired, for the year ended 30 April 2000 of £9.8m and a profit available to partners, before tax, of £3m.

The turnover and profit available to partners, attributable to the non-audit business being acquired by Tenon, were £8.5m and £2.8m before interest and tax.

Stephen Chang, Chairman of Morison Stoneham, said: ‘Our vision for the future of business services coincides with that of Tenon. As a forward-looking practice, we are excited by the prospects of providing enhanced services to benefit our clients. The resource and support available within Tenon will enable us to do this.’

Archive links

Consolidators under fire at National Accountancy Exhibition

Consolidator Tenon appoints finance director

Jobtel on guard as consolidation shortlist drawn up

A guide to the consolidators: Who are they, what do they want and should I sell out to them?

Consolidators – What’s the deal?

Mid-tier firms signal thumbs-down to Tenon

First UK consolidator is launched

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