RSM to grow insolvency practice with Brooke Bird acquisition

Global assurance, tax and consulting group RSM is set to double the size of its insolvency practice in Melbourne with the acquisition of Brooke Bird, a Camberwell-based firm that currently has 70 active engagements including corporate and personal insolvency cases.

Brooke Bird partner Adrian Hunter will be appointed as a partner of RSM Australia when the merger is completed on 2 June, while the acquired company's other partner, Robyn Erskine AM, will come on as a consultant.

RSM Australia chief executive partner Jamie O’Rourke highlights Brooke Bird's support for businesses in financial distress for more than 50 years, with a strong reputation and local market presence in Melbourne that make the firm an ideal strategic and cultural fit.

"In the face of challenging business conditions and rising insolvencies among businesses of all sizes, the integration of Brooke Bird into RSM helps us meet the growing demand for restructuring and insolvency services among our clients and the mid-market sector," says O'Rourke, who is set to retire in the new financial year and will be replaced by Robert Miano.

The announcement comes as 12,000 companies have entered administration in the financial year to date, up 22.9 per cent year-on-year. Recent ASIC data shows a rise in restructuring appointments, more than doubling in the financial year to May 4. 

Meanwhile, the level of personal insolvencies was stable in the recent March quarter at 2,977, of which more than a quarter were business-related.

Adrian Hunter describes the merger as a "tremendous opportunity"  to leverage the scale and resources of RSM while continuing to provide the high-quality insolvency solutions that Brooke Bird's clients have come to expect.

Hunter joined Brooke Bird in 2016 after a 20-year career with Deloitte, PPB Advisory and Ferrier Hodgson, while Robyn Erskine was the first woman to become president of the IPAA, now known as ARITA (Australian Restructuring Insolvency and Turnaround Association).

"Throughout my career, I’ve seen how vital it is for individuals and businesses to seek the right advice as early as possible," Erskine explains.

"When facing financial difficulty, timely and informed guidance can make all the difference in achieving a successful outcome.

"We’ve been at the frontline of financial distress for decades, and this unique position gives us a window into the business community that few others have—insight we’re proud to bring to this new chapter."

Recent administrations led by RSM Australia’s Melbourne practice include the administration of gourmet food-delivery service Providoor and the wind-ups of building firm Langford Jones, equipment hire operator Better Rentals, recycling operation Advanced Circular Polymers and the restructuring of the Balthezar Whiskey Distillery.

The Melbourne practice has supported the firm on a national level on a number of complex assignments, including the administration of PBS Group, which was one of the largest construction voluntary administration appointments in recent times.

"Over the past four years, our Melbourne Restructuring & Recovery practice has established a position as a full-service practice, catering to both personal and corporate insolvency under the leadership of experienced practitioner Jonathon Colbran," says O'Rourke.

“As trusted advisors within the industry, Adrian, Robyn and the Brooke Bird organisation bring a wealth of knowledge and experience to our restructuring and recovery practice that will no doubt build on this position.

“The addition of Brooke Bird will see our practice size double in Melbourne to more than 200 active assignments, 16 team members and $5 million in fees."

The merger follows the recent establishment of a dedicated restructuring and recovery practice at RSM’s Adelaide office.

RSM’s national restructuring and recovery team now has close to 100 team members spread across the firm’s Perth, Brisbane, Sydney, Melbourne, Wagga Wagga, Canberra, Port Macquarie and Adelaide offices.