Merger expert predicts more listed firms by 2011

Accounting marriage brokers Jobtel predicts two new listed consolidators could join the public markets in the next two years.

The broker, which helps merge firms, said that Tenon's acquisition of RSM Bentley Jennison was a sign that the markets were prepared to back accountants' growth.

Two new consolidators could enter the market by 2011.

Jobtel director Julian Hamilton said: "There appears to be a strong movement within the City to encourage a more competitive environment amongst the top accountancy firms - not only to keep a check on fees charged to clients but to provide some relief from the now famous 'too big to fail' scenario - where the governor of the Bank of England, no less, decried his inability to let market forces get to work and that he felt constrained to support banks which should otherwise have collapsed due to their own mismanagement.

"In that respect its probable that the emergence in time of a 5th top accountancy practice would be viewed favourably by the financial regulators. It seems likely that one way this further consolidation might take place is through mergers funded by the City."

Hamilton was involved in Vantis' launch.