Rachael Singh, Accountancy Age, Wednesday 30 June 2010 at 11:15:00

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


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

The assets, acquired from Vantis, consist of three business and advisoryoffices; London, Leicester and Epsom, the trade assets of Thames Valley Recoverypractice and assets of Vantis' Financial Management business.

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

Andy Raynor, CEO of RSM Tenon, said: ?These high quality teams and servicesadd 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 Jennisonhas enabled us to act quickly to complete this exciting transaction and willprovide a template to achieve successful integration."

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

A statement by RSM Tenon said "The consideration for the acquired assets is amaximum 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 £1.1million payable in cash subject to, and upon, the realisation of certain debtorspurchased 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 BentleyJennison.

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

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

The acquisition will be financed through the group's existing bank fundingwith 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:

Vantisenters administration

BreakingNews: Vantis close to administration

FTIConsulting called in to advise Vantis

Breakingnews: Vantis shares suspended