RSM International Conference, Singapore 2007 Introducing RSM Bentley Jennison Tony Stockdale,...

RSM International Conference, Singapore 2007

Introducing RSM Bentley JennisonTony Stockdale, National Managing Partner and Team


ObjectiveObjective

• Structure• Strategy• Service Lines• “Refreshingly different”


Group StructureGroup Structure BoardBoard

Tony StockdaleManaging Partner

Tony StockdaleManaging Partner

Risk ManagementRisk Management

Internal auditInternal audit

Forensic & InvestigationForensic & Investigation

Information Systems Assurance

Information Systems Assurance

ConsultingConsulting

Corporate FinanceCorporate Finance Audit & Business ServicesAudit & Business Services

Lead AdvisoryLead Advisory

Transaction ServicesTransaction Services

TaxTax

AuditAudit

Business ServicesBusiness Services

Financial ManagementFinancial Management

OverseasOverseas


The Competitive EnvironmentThe Competitive Environment


BJ and the MarketBJ and the Market

Competitive Environment• Number of competitors will continue to fall, especially those

providing audit services• Compliance work increasingly becoming a commodity, resulting in

lower margins• Practices/industry will look to reduce costs, possibly by outsourcing

overseas• Clients will buy specialist skills and advisory work, providing they

improve the business operation• New competitors will continue to enter the market in all our service

lines


BJ and the MarketBJ and the Market

Competitive environment- how are we responding?• Increasing our advisory income• Building our corporate sector risk management business• Joining a leading international network and linking up with

like minded practices overseas


RSM BENTLEY JENNISON

$0m $50m $200m $4bn

Client Turnover

Marketing PositioningMarketing Positioning


NATIONALNATIONAL

WITH LOCAL DELIVERY

LOCAL OFFICE

LARGE CORPORATEMID CORPORATE

OWNER MANAGED

RISK MANAGEMENTABS

$0m $50m $200m $4bn Client Turnover

Marketing PositioningMarketing Positioning


What’s Next?What’s Next?

• Audit & Business Services• Corporate Finance• Tax• Risk Management


Audit & Business ServicesPhil Coleman, Head of Audit


AuditAudit

Some opening statistics• Some 1,400 audit clients• 30 Partners/Directors with signing powers• 350+ staff in 10 locations• Wide range of activities and markets


AuditAudit

Our audit approach is risk-based and ISA+ compliant• Audit is a key specialism• Our methodologies are similar in style• ISA+ is ISA with a twist• Key drivers:

– Risk assessment and response – Communication– Efficiency


AuditAudit

Constant improvement is at our heart• Regular training of staff• Methodology reinforced• Quality Assurance Visits to all locations annually• Communication with clients is key feedback


AuditAudit

Developing specialisms to meet needs• Adding and developing the team• Accreditation based

– AIM, Pensions, Charities, Grants, Not for Profits • Changing market leads to new developments


Business Process OutsourcingBusiness Process Outsourcing

• Company formations• Book-keeping• Financial control• Management reporting• Payroll & benefits

management• Statutory returns• Multi-location co-ordination• Relationships with HMR&C• Prepare audit files

• Several major contracts• Communication is important• Process re-engineering• Software platforms• Off-shoring


InternationalisationInternationalisation

• Changing client base– Accelerating

• Changing reporting framework– Standstill to surge– IFRS & US GAAP

• Changing services– Sign off to US standards

• Changing skills– Adding to the US/IFRS skill set


Mark Eardley, Head of Corporate Finance


OverviewOverview

• Business growth• Sell side business – M&A• Buy side business – M&A / TS• AIM Services• Impact of RSMi


A Growing BusinessA Growing Business

Growth in fees• 2004: $2.0m• 2005: $4.0m• 2006: $5.6m• 2007: $7.5m

Growth in average deal size• 2004: $6m• 2005: $10m• 2006: $12m• 2007: $16m


Strong Sell side business – M&AStrong Sell side business – M&A

• Strong delivery teams in major UK offices - London, Birmingham, Leeds, Manchester

• Transaction size up to $100m• At least 30 M&A deals in 2007• Aggregate value: $500m


Strong buy side – M&AStrong buy side – M&A

Strong Deal-Origination (“Growth Engine”)• Dedicated team• Imperfect marketplace – on-market and off-market • Access to 4,000 vendor advisers• Strong engaged Alternative Investment Market (AIM) client base• Key for follow on services• Significant opportunity to develop internationally• Strong project management team


Strong buy side – Transaction SupportStrong buy side – Transaction Support

• Joint CF/Audit delivery playing to strengths• Multi-disciplinary accreditation based team:

– 8 Partners– 9 Managers– Others as required


Strong buy side – Transaction SupportStrong buy side – Transaction Support

• Due diligence covering:– Financial– Systems– Pensions– HR– Tax

• Clients include:– Corporates– Banks– Private Equity Groups


AIM ServicesAIM Services

The London AIM Market• Established 1995• Less Regulated compared with “Full Listing”• Increasingly becoming the market of choice for IPO – wide

range of industries• Providing access to capital for the smaller and mid

corporate companies• LSE to open an office in Shanghai to encourage PRC

companies to list in London



Significant target market• Strategic importance• Growing market place• Wide service needs• International dimension



Key service needs for AIM businesses• Lead advisory• Reporting accountants and transaction support• Audit and assurance• Taxation consultancy services• Risk management and Corporate Governance


Impact of RSMiImpact of RSMi

• Higher quality disposal mandates• More international “buy side” M&A• More Transaction Support assignments for overseas

corporates• Increase in Reporting Accountants work – AIM overseas

flotations• Relationship opportunities with RSM Equico


Rob Meek, Head of Corporate Tax Services


Tax - The Leading Edge Tax - The Leading Edge

Overview• Strong national tax team covering all areas of tax – from

private client services through to specialist corporate, transactional and cross border advice

• Focus on mid-corporate businesses• Specialist tax arm servicing smaller accountancy practices • Specialist public sector tax arm


Tax - The Leading EdgeTax - The Leading Edge

Key statistics and objectives• Currently 140 partners and staff • Targeting 200+ by 2010• Change of balance to consultancy work• Further penetration of mid-corporate market• Attacking certain channels

– Personal wealth– Property & construction– Transactional taxes– Corporate consulting– International (now !!)



• Major recruitment drive• Additional partners in London and key offices• Our growth track record and positive approach reinforced

by strength of RSMI network is generating a stream of potential recruits

• Industry press coverage



International Work• Teams in place in London, Birmingham, Manchester & Leeds• Accredited team of RSMi dedicated 20 Corporate tax specialists• Enhanced training on US/UK tax treatments and international tax

issues generally• Advisory work monitored by:

– Rob Meek – Head of Corporate Tax Services– John Bowes – Head of International Taxes



How can you help us?• Sharing thoughts on tax trends and solutions • Positive business development processes• Lend us your international experience, eg re-enforcement

of our transfer pricing group• Assist targeting on UK multinational groups• Joint targeting of UK and European Private Equity



How can we help RSMi ?• Top quality UK tax advisers and compliance delivery• Capacity and energy for new work

– UK – US– Europe

• Promotion of cross border business development ideas, articles, briefings, products, training

• Secondments (maybe as part of a global staff retention plan?)


Risk Management and ISA


Key Facts Key Facts

• Started in 1989• Single national Risk Management practice from 2001• We are now the largest specialist provider of internal audit

and related services in the UK• The division has more than 600 large corporate and public

sector clients• The largest UK corporate member of IIA UK and Ireland


Key Facts Key Facts

• We employ more than 330 staff in the division– 220+ internal auditors– 30+ specialist IT auditors– 50+ fraud investigators/forensic accountants– 25 consultants– 15 programmers/project managers


Key Facts Key Facts

• Major London presence – more than 60 staff and over $15m fees

• Large technical support department• Significant internal audit experience including Sarbox and

governance backed by IT specialists• Largest forensic/investigative capacity outside of the Big 4• Significant existing overseas clients and work• Integrated with other parts of the division and wider RSM

Bentley Jennison – a complete service


HEAD OF DIVISIONHEAD OF DIVISIONRichard SmithRichard Smith

SPECIALIST SERVICESSPECIALIST SERVICES INTERNAL AUDITINTERNAL AUDITMike GennardMike Gennard

ConsultingConsultingPaul BrownPaul Brown

ISA ISA Ian BlatchfordIan Blatchford

Forensic Forensic AccountingAccountingChris HineChris Hine

IT solutionsIT solutionsJohn JennisonJohn Jennison

BIIS (Fraud)BIIS (Fraud)Paul BellPaul Bell

Overseas Risk MgtOverseas Risk MgtPhil TarlingPhil Tarling

Why “Risk Management” ?Why “Risk Management” ?


Internal Audit Services Internal Audit Services

• Largest specialist Internal Audit provider in the UK (and Europe)• 450 large IA clients across all sectors• Co-sourcing, outsourcing of core audit work• Specialist audit inputs (IT, Tax, Contracts etc)• Bespoke approach• 4Audit © system• Large in house technical team• Reports database for benchmarking


Internal Audit – Client MixInternal Audit – Client Mix

• Numerous large corporates• Numerous Government departments• 100+ Hospitals and healthcare providers• 60+ Social housing providers• 200+ Further Education (FE) Colleges• 30+ Universities and HE Colleges• 70+ Local Councils• 40+ Emergency Services (Police, Fire, Ambulance)• 100+ Charities


Information Systems AssuranceInformation Systems Assurance

• What we do?• Definition: Provide assurance that information technology

systems and the processes those systems support are functioning as intended and that all significant risks are being appropriately managed



Structure, skills and role• National team • Own ISA client work• Provide support to the Internal Audit client base • Provide support to the External Audit client base• Provide support to Forensic teams• Very experienced team – Big 4 & experience of GMNC’s & Sarbox• CISA preferred qualification supported by CISSP/CISM



Services• IT Internal Audit Services• Risk and governance services• Sarbanes Oxley services• Third Party Assurance (incl. SAS 70 reviews)• Information security• Business Continuity Management• Data Management• Project Risk Assurance



Selected of clients & engagements• Galiform Plc (Retail/Manufacturing)– IT Internal Audit outsource• Premier Foods Plc (Food Manufacturer) – Programme assurance

& SAP project assistance• Beazley Plc (Insurance) - IT Internal Audit outsource• Blacks Plc (Retail) – Business continuity planning• Heritage Plc (Insurance) – IT Internal Audit outsource• University of Staffordshire – Strategic IT Review• JCB (Manufacturing) – SAP Security Review• British Computer Society – BS7799 benchmarking


Specialist Services Specialist Services

IT Solutions – Risk management related applications• 4Audit ©• 4Risk ©• 4Action ©• 4Performance ©


Overseas Working - Some ClientsOverseas Working - Some Clients

• United Nations• Department for International Development• Polish Government• Turkish Government• European Union• OHR (Bosnia)• OXFAM• NAAFI• Isle of Man Government• States of Jersey and Guernsey


Overseas Working - ServicesOverseas Working - Services

• Internal audit and risk management training• Fraud investigations• IT audit• Forensic Accounting• Audit of NGOs and third party funded projects• Internal audit and governance reviews• General consulting on governance and risk management• Grant certification• Accounting advice on IFRS etc


Overseas Working - Where We WorkOverseas Working - Where We Work

• Bosnia• Italy• France• Nicaragua• Turkey• Germany• Indonesia• Spain• Channel Islands

• Australia• Poland• Puerto Rico• USA• Portugal• South Africa• Bangladesh• Bolivia• Isle of Man• Netherlands


How RSMi can help us ?How RSMi can help us ?

• Increase the proportion of our work in large corporates – a big opportunity

• Use Risk Management to access larger corporates for wider RSM Bentley Jennison services

• Increase sales, worldwide, of our specialist software • Increase our international presence in both the public and

corporate sectors


How we hope to help RSMi How we hope to help RSMi

• Assist in the development of risk management related services worldwide

• Take the lead in Europe and Africa for risk management • Provide secondment opportunities• Assist with joint bidding – Corporates and “Not for Profits”• Provide appropriate access to software tools for RSM

members and clients


Key StrengthsKey Strengths

• “Can do” attitude• Client service• Quality of people• Dynamic• Desire and leadership• Committed to RSMi


““The greatest danger for all of us is not that our aim is too The greatest danger for all of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” high and we miss it, but that it is too low and we reach it.”

MichelangeloMichelangelo

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