Ambit RSM may be on the block; talks on with UK co
Ambit RSM, the largest after the Big Four accounting firms in India, is in talks with UK-based BDO International for a possible merger or alliance, sources familiar with the development said.
By M Padmakshan & MV Ramsurya, TNN |
MUMBAI: Ambit RSM Advisory, one of India���s largest private tax and advisory services companies, is believed to be examining the possibility of tying up or merging with a global tax and advisory firm.
Ambit RSM, the largest after the Big Four accounting firms in India, is in talks with UK-based BDO International for a possible merger or alliance, sources familiar with the development said. Some of the Big Four ��� KPMG, PwC, Deloitte & Touche LLP and E&Y ��� are also learnt to be in the fray.
���We have been in talks with BDO for sometime. The talks are for joining BDO as its member. Every accounting firm is a member of a larger firm,��� Ashok Wadhwa, managing partner of Ambit RSM, said. Like all knowledge-driven firms, people are the biggest assets in a tax and advisory services company.
Ambit RSM has some of the world���s biggest clients such as GE, Wal-Mart, Microsoft, Sony, British Airways, the Bayer group, VISA, Dell Computer, and from India, Tata group companies. RSM���s services include taxation and business advisory, transaction support services, services related to indirect taxes and transfer pricing.
BDO is the fifth largest global accounting firm with more than 600 offices across the world. RSM can become a member of BDO, a trend that is followed worldwide by most legal firms. A senior source in KPMG confirmed the development ���We have shown our interest. But nothing has been finalised so far���.
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A senior Deloitte source also confirmed that Ambit RSM is looking for partnerships, but declined to elaborate further. It has been reliably learnt that more than 15 senior executives have left Ambit RSM in the past 12 months, prompting speculation that the departure of key people is leading the company to scout for alliances.Legal experts say that apart from an outright sale, Ambit RSM management could also exercise the option to sell its divisions separately to different firms. The group companies include Ambit Corporate Finance, RSM Advisory Services, Axis Risk Consulting, Ambit Capital and India Value Fund.
Recently, Niko Asset Management Co and Ambit RSM agreed to form an asset management joint venture in India. Niko would hold about 75% in the JV, with Ambit owning the remaining.
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