Vantis method of consolidation unlikely to reappear
Firms will come together through more traditional means
The Vantis model of consolidation is unlikely to appear again, according to
industry watchers who believe activity among firms will take a more traditional
form with the merger model being the most likely route to bringing businesses
together.
The views come from UK200 Group president Colin Howe, who believes that the
recent demise of Vantis has provided a salutary lesson about the risks involved
in raising growth capital through the publicly quoted markets.
“I suspect most of us in the independent accountancy firms sector will have
received the news with a hint of schadenfreude. the demise of a competitor
brings opportunities, but this is coupled with sympathy for all those directly
affected.”
He added: “There will undoubtedly be further consolidation in the mid-tier
sector but I believe that this will follow the more traditional merger model
(undertaken for defensive and succession reasons) rather than cash buyouts where
the returns on investment are proving elusive.”
Vantis collapsed earlier this year and was sold piecemeal. Former partners
bought part of the firm while RSM Tenon bought another.
The business had faced a going concern warning and had suffered because it
was unable to recover fees for working on the liquidation of Standford
International Bank.
Read more:
Vantis
sale process months in the making
Vantis
staff find home with Begbies
Consortium
buys Vantis offices