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RSM Tenon swoops on Vantis - 30/06/2010

RSM Tenon has this morning announced a £6.8m deal to snap up assets from struggling rival Vantis.

The fully listed accounting firm said it will acquire the London, Epsom, and Leicester advisory offices, the national Financial Management operations and the Thames Valley recovery office, including 300 staff from Vantis administrators Chad Griffin.

The deal is expected to add an estimated £27m to the company’s annual fee income and will mean the firm will become a top 20 IFA firm.

RSM Tenon said that the integration of the acquired assets will be amalgamated within the current integration programme for RSM Bentley Jennison and is expected to take approximately six months.

The deal follows a swift management buy out by Vantis partners Jeremy French and Geoff Rowley for the Vantis Business Recovery Services to form FRP Advisory. The new practice will remain offering restructuring, recovery and insolvency services.

RSM Tenon's acquisition is being financed through the group’s existing bank funding, which is to be extended to maintain the level of headroom within the group. An additional £10m revolving credit facility will be provided by Lloyds TSB bank.

Andy Raynor, chief executive 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.

"With acquisitions in the last six months totalling almost £100m of potential revenue, RSM Tenon has demonstrated the ambition for growth that we have always encouraged in our clients. Our ability to act quickly in completing this advantageous transaction has been aided by the continuing successful integration of our earlier RSM Bentley Jennison acquisition. Processes created and tested in that merger will be activated immediately by our dedicated teams."

Vantis has entered into administration after a series of hurdles forced the group to suspend trading its shares and admit that there was "insufficient cash to remain trading."

Vantis suffered a drop in demand at its advisory and tax division during the recession, but also delays in receiving fees from the liquidation of alleged fraudster Allen Stanford’s bank in Antigua which squeezed its cash facilities.

As a result Paul Jackson resigned as chief executive of Vantis and Nigel Hamilton-Smith, a joint liquidator of Stanford International Bank, has already stepped down from the board.

The acquisition of Vantis assets is a coup for RSM Tenon, who tried unsuccessfully in 2008 to acquire the firm. At the time Vantis was valued at £115m, while its shares traded at 120.5p. The day before Vantis suspended trading of its shares they had bottomed to just 9.5p, giving it a market capitalisation of £5.9m.