RSM Tenon

RSM Tenon was a United Kingdom professional-services firm that provided accounting, audit-related, tax, recovery, risk-management, financial-management and business-advisory services. It was created in December 2009 through the merger of Tenon Group and RSM Bentley Jennison, combining a publicly traded accountancy consolidator with an established regional accounting and advisory practice. The enlarged business operated under the RSM name and became part of the RSM Global network. The company's origins lay partly in Tenon Group, an early British accountancy consolidator. Tenon was established to bring independent local accountancy partnerships into a national corporate structure and was one of the first United Kingdom accountancy businesses organized as a public limited company. It listed on the Alternative Investment Market and expanded rapidly through acquisitions, including the purchase of five firms in 2001 for £60 million. The consolidator model proved difficult to integrate, however, and Tenon's share price fell sharply during the early 2000s. Audit work was initially separated through an associated partnership called Blueprint Audit because of restrictions on audit ownership by public companies; those rules were subsequently relaxed. RSM Bentley Jennison had a different history. Founded in 1984 by David Bentley and John Jennison, it developed into a sizable United Kingdom chartered-accountancy and business-advisory firm with more than 1,000 employees and fifteen offices. It joined the RSM Global network after the network's previous United Kingdom member, Robson Rhodes, merged with Grant Thornton in 2007. Before the merger with Tenon, Bentley Jennison ranked among the larger British accountancy firms. The 2009 transaction, reported at approximately £76 million, created a business with national scale and around 2,600 employees across 35 United Kingdom offices. Andy Raynor, Tenon's chief executive, initially led the combined organization, while Tony Stockdale and other senior RSM Bentley Jennison figures joined the public company's board as executive directors. The firm rationalized parts of its office network while identifying Birmingham, Bristol and Leeds as areas for expansion. In 2010, RSM Tenon moved its shares from AIM to the main market of the London Stock Exchange, becoming the first accountancy firm listed there according to the referenced material. Expansion continued with the purchase of several offices from failed consolidator Vantis in June 2010. The acquired operations had generated approximately £27 million in prior-year turnover and helped support reported growth in the year ending June 2011. RSM Tenon also received industry recognition, including National Firm of the Year at the 2011 British Accountancy Awards. The company nevertheless experienced regulatory, commercial and financial difficulties. In February 2010, the Financial Services Authority fined it £700,000 over the mis-selling of structured-finance products. In January 2012, management warned that pricing pressure and difficult economic conditions would lead to losses. Raynor and chairman Bob Morton stepped down; Adrian Martin became chairman and Chris Merry became chief executive. Results released shortly afterward included a £60 million goodwill impairment, leaving the company with a substantial half-year loss. In August 2013, RSM Tenon Group's shares were suspended and the company entered insolvent administration. Its trading subsidiaries were immediately acquired by Baker Tilly UK Holdings through a limited-liability partnership. Baker Tilly LLP later adopted the RSM UK name and was rebranded as RSM in October 2015, becoming part of the modern RSM network. That successor organization should not be confused with RSM Tenon itself, which ceased operating as the listed corporate group. Subsequent regulatory proceedings also concerned the audit of RSM Tenon's 2010/11 accounts: PwC was fined in 2017 for misconduct involving insufficient audit evidence and inadequate professional skepticism. Former finance director Russell McBurnie was later excluded from the accountancy profession for five years and fined £57,000 in connection with the company's collapse, with an additional order to contribute £825,000 toward investigative costs.

RSM Tenon's history combined two distinct British accountancy traditions: the acquisitive Tenon Group and the partnership-based RSM Bentley Jennison practice. Tenon was created as a corporate consolidator intended to bring independent local accountancy partnerships into one national organization. It was unusual in the United Kingdom because it was publicly owned and listed on AIM rather than being wholly owned by partners. In April 2001 it acquired five firms for £60 million and became the fifteenth-largest firm in the national accountancy rankings. Integration proved difficult, and its share price fell to 6.25 pence in 2003 after the collapse of the dot-com boom. Audit work was initially conducted separately through Blueprint Audit because public-company ownership restrictions prevented Tenon itself from undertaking the work. RSM Bentley Jennison was founded in 1984 by David Bentley and John Jennison. It expanded to more than 1,000 employees in fifteen offices and ranked fourteenth in the 2007 accountancy league table. The firm obtained a place in the RSM Global network after Robson Rhodes, the network's former British member, merged with Grant Thornton in 2007. This gave Bentley Jennison an international network connection before its combination with Tenon. In December 2009, Tenon announced a merger with RSM Bentley Jennison valued at approximately £76 million. The combined company adopted RSM branding, retained a national office presence and became one of Britain's larger accounting firms, with about 2,600 employees in 35 offices. Andy Raynor initially led the enlarged company, while Tony Stockdale and other Bentley Jennison executives joined the board. RSM Tenon subsequently acquired several Vantis offices in 2010 after Vantis entered administration. The purchase supported expansion and contributed to a reported 31% increase in turnover for the year ended June 2011. The company also pursued greater capital-market visibility. In May 2010 its shares moved from AIM to the main London Stock Exchange market, an unusual step for an accountancy firm. Regulatory and commercial pressures soon became more prominent. The Financial Services Authority fined RSM Tenon £700,000 in February 2010 over the mis-selling of structured-finance products. In early 2012 the business warned that pricing pressure and a difficult economy would produce losses. Raynor and chairman Bob Morton departed, Adrian Martin became chairman and Chris Merry became chief executive. The company then reported a half-year loss following a £60 million goodwill write-off. In August 2013, RSM Tenon Group's shares were suspended and the company entered insolvent administration. Baker Tilly UK Holdings acquired the trading subsidiaries through a limited-liability partnership, ending RSM Tenon's existence as an independent listed group. Baker Tilly LLP later rebranded as RSM UK in 2015 and then as RSM, linking the acquired operating businesses to the wider RSM network. The later RSM organization is a successor to parts of the trading business rather than the same legal corporate entity as the failed RSM Tenon group. Further scrutiny followed the collapse: PwC was fined in 2017 for audit misconduct concerning the 2010/11 accounts, while former finance director Russell McBurnie received a five-year professional exclusion, a £57,000 fine and an order to pay £825,000 toward investigative costs.

• 2015

  Successor business adopts RSM branding

  [1]RSM Tenonen.wikipedia.org

  Baker Tilly LLP, the successor operating platform, rebranded as RSM UK and later as RSM.

• 2013

  Insolvent administration

  [1]RSM Tenonen.wikipedia.org

  The listed group entered administration after its shares were suspended; its trading subsidiaries were sold to Baker Tilly UK Holdings.

• 2011

  National Firm of the Year

  [1]RSM Tenonen.wikipedia.org

  RSM Tenon received the National Firm of the Year award at the British Accountancy Awards.

• 2010

  Main-market listing and Vantis acquisition

  [1]RSM Tenonen.wikipedia.org

  RSM Tenon moved from AIM to the London Stock Exchange main market and acquired several Vantis offices after Vantis entered administration.

• 2009

  RSM Tenon created

  [1]RSM Tenonen.wikipedia.org

  Tenon Group merged with RSM Bentley Jennison in a transaction reported at approximately £76 million.

• 2007

  Bentley Jennison joins the RSM network

  [1]RSM Tenonen.wikipedia.org

  RSM Bentley Jennison secured the United Kingdom position in the RSM Global network after Robson Rhodes merged with Grant Thornton.

• 2001

  Tenon expands through acquisitions

  [1]RSM Tenonen.wikipedia.org

  Tenon acquired five accountancy firms for £60 million and became the fifteenth-largest firm in the United Kingdom league table.

• 1984

  RSM Bentley Jennison founded

  [1]RSM Tenonen.wikipedia.org

  David Bentley and John Jennison founded the British chartered-accountancy and advisory firm that later became one half of RSM Tenon.

A national United Kingdom accounting and advisory firm serving businesses through a broad professional-services model, with the scale of a listed consolidator and the RSM network affiliation.

• Accounting services

  Audit and accountancy

  RSM Tenon operated as a national accountancy firm offering audit-related and general accounting services to businesses. Its corporate structure was notable because audit activities were initially separated through Blueprint Audit when ownership rules restricted direct audit work by a public limited company.

• Tax advisory

  Tax services

  The firm provided tax advice and related compliance support as part of its integrated professional-services offering for business clients.

• Corporate recovery

  Recovery and restructuring

  RSM Tenon offered recovery and financial-distress services, including advice associated with business failure, restructuring and insolvency situations.

• Consulting

  Risk and business advisory

  Its advisory portfolio included risk management, financial management and broader business advice. These services complemented the firm's accounting and tax work and supported its positioning as a multi-service adviser to the middle market.

• 2017

  Audit misconduct concerning 2010/11 accounts

  PwC was fined for misconduct in auditing and approving RSM Tenon's 2010/11 accounts, including failures involving audit evidence and professional skepticism.

  Source

• 2013

  Corporate insolvency and administration

  RSM Tenon Group's shares were suspended and the company entered insolvent administration. Trading subsidiaries were sold to Baker Tilly UK Holdings.

  Source

• 2010

  Structured-finance mis-selling fine

  The Financial Services Authority fined RSM Tenon £700,000 for mis-selling structured-finance products.

  Source

• Professional sanctions against former finance director

  Former finance director Russell McBurnie was excluded from the accountancy profession for five years, fined £57,000 and ordered to contribute £825,000 toward investigative costs in connection with the firm's downfall.

  Source

Read more

• 2013

  Enter insolvent administration and sell trading subsidiariesOther

  Background

  The listed group faced continuing financial difficulties and its shares were suspended.

  Action taken

  RSM Tenon entered insolvent administration, and Baker Tilly UK Holdings purchased the trading subsidiaries through a limited-liability partnership.

  Aftermath

  RSM Tenon ceased to operate as an independent listed group. The acquired operating business later formed part of Baker Tilly's transition to RSM UK and RSM.

  Source

• 2012

  Change leadership after loss warningStrategy

  Background

  Pricing pressure and a difficult economy created financial strain, followed by a major goodwill impairment.

  Action taken

  Andy Raynor and Bob Morton stepped down; Adrian Martin became chairman and Chris Merry became chief executive.

  Aftermath

  The company reported a half-year loss after writing off £60 million of goodwill and later entered administration in 2013.

  Goodwill write-off. £60 million (First half of 2012)

  Source

• 2010

  Move listing to the London Stock Exchange main marketStrategy

  Background

  After the merger, RSM Tenon pursued a more prominent public-market position.

  Action taken

  The company transferred its shares from AIM to the main market of the London Stock Exchange.

  Aftermath

  The move was described as making RSM Tenon the first accountancy firm listed on the main London market.

  Source

• 2010

  Acquire Vantis officesM&A

  Background

  Vantis entered administration and its business was broken up.

  Action taken

  RSM Tenon acquired several Vantis offices for £6.8 million.

  Aftermath

  The acquired operations had generated £27 million in the preceding year and contributed to reported turnover growth for RSM Tenon.

  Acquisition price. £6.8 million (June 2010)

  Source

• 2009

  Merge Tenon Group with RSM Bentley JennisonM&A

  Background

  Tenon sought greater national scale and RSM Bentley Jennison brought an established accountancy practice with an RSM Global network position.

  Action taken

  The companies completed a merger reported at approximately £76 million and operated under RSM branding.

  Aftermath

  The combination created a firm with approximately 2,600 employees in 35 United Kingdom offices.

  Reported transaction value. £76 million (December 2009)

  Source

• 2013

  RSM Tenon enters insolvent administration[1]RSM Tenonen.wikipedia.org

  Bankruptcy · M&A

  The company's shares were suspended in August and the group entered insolvent administration. Its trading subsidiaries were purchased by Baker Tilly UK Holdings through a limited-liability partnership.

• 2012

  RSM Tenon changes leadership amid profit warning[1]RSM Tenonen.wikipedia.org

  Leadership change · Other

  The firm warned of losses attributed to pricing pressure and difficult economic conditions. Andy Raynor and Bob Morton left their leadership roles, with Adrian Martin becoming chairman and Chris Merry becoming chief executive.

• 2012

  RSM Tenon reports loss after goodwill impairment[1]RSM Tenonen.wikipedia.org

  Other

  Half-year results included a £60 million goodwill write-off and reported a loss.

• 2011

  RSM Tenon wins National Firm of the Year[1]RSM Tenonen.wikipedia.org

  Other

  The firm received the National Firm of the Year award at the British Accountancy Awards.

• 2010

  RSM Tenon moves from AIM to the London Stock Exchange main market[1]RSM Tenonen.wikipedia.org

  Other

  The company transferred its listing from AIM to the main market of the London Stock Exchange.

• 2010

  RSM Tenon acquires offices from Vantis[1]RSM Tenonen.wikipedia.org

  M&A

  RSM Tenon acquired several offices from rival consolidator Vantis after Vantis entered administration.

• 2009

  RSM Tenon formed through merger with RSM Bentley Jennison[1]RSM Tenonen.wikipedia.org

  M&A · Other

  Tenon Group announced a merger with RSM Bentley Jennison in a transaction reported at approximately £76 million, creating a larger national accountancy and advisory firm.

1. 1RSM Tenonen.wikipedia.org