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.’
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