THERE WILL BE no personnel shed as part of the merger deal between Moore Stephens and Chantrey Vellacott, the firms’ managing partners have said.
Speaking to Accountancy Age, Chantrey Vellacott managing partner Mike Tovey confirmed no partners or more junior personnel will be “shed” as a result of the move.
“None have been shed. There have been some status changes of course, while other partners are taking the opportunity to begin their glide-path into retirement, but both firms have come together fully-charged and forward-facing,” he said, adding the same is true of more junior personnel.
“There are no people being left by the side of the road,” he added.
And while Chantrey Vellacott’s name is to disappear from the UK’s accountancy landscape, Moore Stephens’ managing partner Simon Gallagher implied no consideration had taken place as part of the deal.
“I’m not sure that’s something we’d like to comment on in particular detail, but it’s very rare these days that there would be a transaction in which monies had changed hands in some way,” he said.
Gallagher also shrugged off suggestions that his firm had underperformed in recent years. Moore Stephens’ London office makes up more than half the UK operation’s fee income, but has suffered from falling revenues. Income fell to £66.6m for the year ending 30 April 2013, from £68m a year earlier. In 2011, revenues were £71m.
“I think there’s been some reorganisation of the revenue streams within the Moore Stephens network,” he said. “We’ve also disposed of some of our business over the last few years, but the actual level of retained business has not fallen away at all. We’ve remained profitable and we’re now looking to use this platform to move forward.”
The move creates a £162.73m firm based on Accountancy Age‘s most recent Top 50+50 figures.
However, the merger is specifically taking place between Moore Stephens’ London office and Chantrey Vellacott, and will trade as Moore Stephens LLP.
The offices will consolidate at 150 Aldersgate Street in the Barbican area of London over the coming months. Current Moore Stephens managing partner Gallagher will lead the amalgamated firm, with Richard Moore remaining as senior partner. Chantrey Vellacott’s Tovey will be joining the firm’s partnership executive committee.
The move means Chantrey Vellacott leaves its international network DFK in favour of Moore Stephens International.
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