Tenon enters big league as it buys five firms.
Accountancy-based business services company Tenon this week edged closer to becoming a top ten player after announcing five acquisitions worth #59m.
The deals double its non-audit turnover to #60m, forcing Mazars Neville Russell out of the 14th spot in the Accountancy Age top 50.
Tenon is now within #10m of replacing current tenth placed firm Baker Tilly, after announcing the acquisition of the non-audit businesses of the Lathams Group, Scott Oswald, Jennings Johnson, the Godfrey Allan Group and the corporate recovery business of Horwath Clark Whitehill.
The audit business of acquired firms is placed with a separate company called Blueprint Audit, which is owned by the former audit partners of the legacy practices. If the audit turnover was included in Tenon’s figures, it would already be a top ten firm with fee income of over #70m.
Further deals are expected before the year-end, but the immediate aim for Tenon is to integrate the new interests.
Chief executive Ian Buckley said: ‘The new practices that have chosen to join us are evidently of the highest quality.’
Lathams and Scott Oswald are based in Manchester and Edinburgh respectively, Jennings Johnson is located in the North-East, Godfrey Allan is a specialist practice in London, while Horwath Clark Whitehill & Co is a corporate recovery specialist practice, also in London. Yorkshire, East Anglia, Wales and Ireland remain areas Tenon aims to grow into.
The total paid for the new Practices is #59.3m, consisting of #20m for Lathams, #18.5m for Scott Oswald, #4.8m for Jennings Johnson, #6m for Godfrey Allan and #9.95m for the Horwath Clark Whitehill business.
