Apparently GT are looking at making another acquisition - they must feel they don't have a big enough backlog [:D]
Below is the full text from Tenon's website:
Potential disposal of Individual Voluntary Arrangements ("IVA") business
The Company announces that it is in exclusive discussions with Grant Thornton UK LLP to dispose of the IVA business of RSM Tenon Recovery.
The IVA business is a stand-alone activity based in Manchester that employs approximately 60 members of staff. For the year ended 30 June 2012 the business generated revenues of approximately £5.0 million. The proposed sale does not include the Company's debt management business or any other part of RSM Tenon Recovery.
No assurance can be given that a sale will be concluded and a further announcement will be made in due course.
That would worry me for others with both GT and RSM Tenon.
I have respect for GT but there is always a worry that customer service will suffer if a company takes on more clients without sufficient staff increases.
It doesn't matter how many cases an IP agrees to take on, so long as they have the infrastructure to cope with administering all of them. It is interesting, however, to see yet another major player exiting the IVA market.
I think Melanie's point is a very important one. The squeeze on fees is pushing firms out of the personal insolvency market and there is a danger that choice will be eroded. If this continues the independent professional sector will vanish and all that will be left will be bank funded firms and 'charities'.
Given that these firms have very few IPs between them I would question their ability to properly advise and maintain IVAs for the population so there is a significant danger that more and more people will end up in long term unsuitable DMPs and IVAs and bankruptcies will decline.
The income from IVAs has been squeezed so much that with all the regulation and annual reviews etc it can't be cost effective in some cases.
Most DMPs command the same monthly charge as IVAs yet have much less administration and regulation so it is no wonder that companies are selling on their IVA books and retaining their very profitable DMP portfolios
It will be interesting to see overtime, if it goes through, what impact this will have on clients as the difficult period following handover last time for GT did seem to go on for a while. I do believe though some of that was down to the administrative difficulties that were handed over to them which they had to rectify. Hopefully RSM Tenon's portfolio is of the same quality as any good company should have and it will be a breeze....watch this space!
Merlin - I like your comment - if only we could let everyone know to come on here first...I think I'd need my sleeping bag at my desk though!!!
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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I think apologies to McC D and a few other IVA companies is in order from me as they also show a huge degree of adult, joined up decisions for their customers.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues
