Ambit RSM merges tax practice with PriceWaterhouseCoopers

Indian accounting firm Ambit RSM Private Limited and global accounting major PriceWaterhouseCoopers (PwC) are merging to form India’s largest accounting firm with a total staff strength of around 4000 people. The deal size has not been disclosed. RSM Advisory Services Private Limited, the taxation advisory arm of Ambit RSM Private Limited, would merge with PwC’s tax practice effective April 1; the combined operations would be under the common brand of PwC. RSM managing partner Ashok Wadhwa will not join the combined firm and will continue to manage the Ambit group of businesses. The Ambit Group comprises of Ambit Corporate Finance, Ambit Capital and the new joint ventures of Ambit with TV18 and Centurion Bank of Punjab for online broking and with Nikko Asset Management for asset management business in India. Current revenues of PwC are at about Rs. 650 crores and would scale up to Rs. 800-900 crores post-merger. RSM has some large clients such as General Electric, Wal-Mart, Microsoft, Sony, British Airways, Bayer Group, Visa, Dell Computer, and in India companies from the Tata Group.

Read the article in The Economic Times.
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Ambit RSM up for sale; may tie with UK-based accounting firm BDO International

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.