Administration Irony

After all the mentions of RSM Tenon and the Administration of Challinors, the news that RSM Tenon themselves went through a pre-pack administration last week. They were sold to Baker Tilly – Telegraph story here.

To make the obvious point, an accountancy firm which has to restate its accounts is always going to be in trouble.

After all the comments about the problems facing the legal profession, accountants face some similar problems. Query whether growth by acquisition is always sensible, particularly if financed by debt.

Challinors and PI Developments

News that Challinors’ PI caseload has been sold to SGI Law of Liverpool. So the people do not go with it, which I deal with elsewhere.

From the same Gazette report, news that Fentons is being taken over by Slater & Gordon (more detail here).

Apart from the further consolidation of the legal profession generally (and PI in particular) it illustrates that floating on the stock exchange may give advantages in terms of raising capital.