PracticeAccounting FirmsRSM Tenon may spend £6.8m in Vantis acquisitions

RSM Tenon may spend £6.8m in Vantis acquisitions

RSM Tenon save approximately 300 employees at Vantis through the buyout of its London, Epson and Leicester assets

RSM Tenon may spend as much as £6.8m when it completes its acquisition of
assets from rival Vantis, which entered administration yesterday.

The assets, acquired from Vantis, consist of three business and advisory
offices; London, Leicester and Epsom, the trade assets of Thames Valley Recovery
practice and assets of Vantis’ Financial Management business.

Vantis announced yesterday evening it had entered administration, with Chad
Griffin and Simon Granger of FTI Consulting appointed joint administrators.

Andy Raynor, CEO of RSM Tenon, said: “These high quality teams and services
add significantly to our own operations in areas of strategic importance,
especially in London, Financial Management and Recovery.

“The experience gained in implementing the merger with RSM Bentley Jennison
has enabled us to act quickly to complete this exciting transaction and will
provide a template to achieve successful integration.”

Approximately 300 employees will be absorbed into RSM Tenon. The listed firm
hopes to expand its services to private and entrepreneurial businesses, as well
as restructuring and turnaround departments.

A statement by RSM Tenon said “The consideration for the acquired assets is a
maximum of £6.8 million, satisfied by the payment of initial consideration of
£5.7 million in cash on completion and deferred consideration of up to £1.1
million payable in cash subject to, and upon, the realisation of certain debtors
purchased as part of the acquisition.”

RSM Tenon believes it will take about six months to integrate Vantis’ assets
– similar to the time it took when it acquired components of RSM Bentley
Jennison.

The firm estimates the cost of integrating the Vantis businesses into the
group will be in the region of £3.6m, with transaction cost related to the
acquisition will come to about £500,000.

Directors hope earnings at RSM Tenon will increase in its first full year
under new ownership.

The acquisition will be financed through the group’s existing bank funding
with an additional £10m revolving credit facility provided by Lloyds TSB.

RSM Tenon’s acquisitions made about £27m, with a profit contribution of about
£4.1m, in the financial year ended 30 April 2010.

Further reading:

Vantis
enters administration

Breaking
News: Vantis close to administration

FTI
Consulting called in to advise Vantis

Breaking
news: Vantis shares suspended

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