BAKER TILLY is to become accountancy network RSM International’s UK member firm.
The firm will formally join the network later this year on completion of a notice period with its existing network Baker Tilly International.
During the transition period, the firm will continue to trade as Baker Tilly, but will disclose prominently that it is an independent member of RSM International, after which the firm will then adopt the global network name and corporate identity.
Baker Tilly International was originally called Summit International, and only became Baker Tilly International in 2001. Baker Tilly joined the network in 1988.
Top ten firm Baker Tilly acquired RSM Tenon via a pre-pack administration in September 2013, creating a firm of around 3,500 partners and staff and a fee income of over £300m.
It paid £30m for that acquisition, of which £1m cash consideration was paid towards the firm’s shares; £22m was paid to settle the bank debt at RSM Tenon; plus a £7m working capital adjustment. It paid just £7 (seven) for the audit arm RSM Tenon Audit.
According to Baker Tilly’s latest results, profit before tax was £7.2m for the year ended 31 March 2013, compared to £15.8m for the same period a year earlier. Profit after tax fell to £6.9m from £14.6m in 2012.
CEO of RSM International Jean Stephens said: “Baker Tilly is a large, well respected, quality national UK firm with a diverse client base. There is a natural alignment with RSM with respect to core values, focus on quality and aspirations for growth and development.
“In reaching this decision, we have engaged in an in-depth mutual due diligence process. The Baker Tilly team has met with RSM members in Asia Pacific, Latin America, Europe, Africa and the US and it is clear there is a strong cultural fit and alignment in vision and purpose.”
Baker Tilly managing partner Laurence Longe (pictured) added: “Membership in the dynamic global network of RSM will bring huge benefits to Baker Tilly and we believe it to be in the best interests of our clients, partners and staff. We are proud of the quality of our service delivery and our excellent client list and have full confidence that RSM member firms will help us deliver the services our expanding international client base requires.”
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