Wednesday, February 7, 2007

Ambit RSM up for sale; may tie with UK-based accounting firm BDO International

Ambit RSM Advisory, one of India’s largest private tax and advisory services companies, is looking out for tying up or merging with a global tax and advisory firm.

Ambit RSM is the largest after the Big Four accounting firms in India. It is reportedly in talks with the UK-based BDO International for a possible merger or alliance. BDO is the fifth largest global accounting firm with more than 600 offices across the world. RSM’s services include taxation and business advisory, transaction support services, services related to indirect taxes and transfer pricing. It has some of the world’s biggest clients such as GE, Wal-Mart, Microsoft, Sony, British Airways, the Bayer group, VISA, Dell Computer, and the Tata Group companies from India. In addition to BDO, some of the Big Four firms, which include E&Y, KPMG, PWC, and Deloitte & Touche, are also said to be interested.

It has been 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. 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 (See Related Post).

More in the article in The Economic Times.

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