Jobtel, the broker behind moves to create a new accounting and business services brand, said this week it is on track to launch a new consolidated firm in April and predicted it will attract £160 million in fee income within five years, today's Accountancy Age reports.
This would put the new player just behind the Big Five according to the 1999 Accountancy Age Top 50.
Jeremy Kitchen, Jobtel’s associate director, said the company is seeking a further £16m to £20m in funding, but added that it is already well past the critical mass needed to launch.
The company has held talks with firms in the £3m to £16m fee income bracket and claims strong expressions of interest from two Group A firms.
Its aim is create a core accountancy business but to provide additional business services, such as executive search, not otherwise available to clients outside the Big Five.
Jobtel expects that senior partners from the so-called foundation firms will play a role appointing a chief executive officer. The company advertised for a CEO in December.
Jobtel’s director, Julian Hamilton is seeking further capital backing from the City, from banks, insurance companies and venture capitalists.
Jobtel faces competition in the consolidation race from stockbroker Raphael Zorn Hemsley, which aims to float a new £50 million entity next month. RZH is aiming for a fee income of £100 million shortly after launch.
If both consolidators are successful, the UK’s mid-tier, which already attracts over £1bn in fees, will be completely re-drawn.
Thirty firms approach mid-tier consolidator