Kidsons Impey and Moores Rowland this week blamed unresolvable constitutional differences for a surprise decision to abandon merger plans.
The combined operations of the two mid-tier rivals would have created the UK’s eighth-largest accountancy firm, with an annual turnover approaching #100m.
Announcing their decision to drop the merger plans on Tuesday 10 November, the firms said differences over the constitution and structure of the merged firm had become apparent and were impossible to resolve.
The news follows recent reports that senior partners were wrangling over pay and partnership deeds.
A number of partners at Moores Rowland, the smaller of the two firms, are understood to have voiced objections to what was widely perceived as a Kidsons takeover.
Kidsons managing partner Peter Douglas said: ‘We have exchanged many ideas, but when we realised that there were issues that could not be resolved, we agreed to end the discussions amicably.’
Clive Weeks, his opposite number at Moores Rowland, said: ‘We have both always maintained this merger had to be right for our clients, partners and staff in order for it to succeed in this highly competitive marketplace.’
Market sources expressed mixed reactions. Some commented it was unsurprising given structural differences between the two and their struggles with profitability.
Others were more surprised, pointing to the considerable time and resources the two had put into the merger process. They had been in talks since at least June.
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