Atoz Services, described as the largest tax advisory firm in Luxembourg outside the Big 4, announced on 29 January its acquisition of former rival Fund Solutions, a money-losing Luxembourg firm offering outsourced fund administration services for listed and unlisted corporations, private equity and real estate funds.
According to Fund Solutions’ 2022 annual report, the firm reported a loss of 22,809 euros for the financial year, after turning in a marginal profit of 47,885 euros the previous year. The firm also had to repay nearly 200,000 euros to creditors within one year.
Staff cost savings reported
The firm also reported substantial savings in 2022 on staff costs and operating expenses. This included a saving of 778,000 euros in wages, salaries and social security costs, which would have negatively impacted Fund Solutions employees. On another line, the firm reported 110,000 euros in savings on “operating expenses”. The severe cost-cutting was also reported for the previous year.
It seems that Fund Solutions general partner took note of auditor Avega Revision’s reminder that he was “responsible for assessing the Company’s ability to continue as a going concern.” Fund Solutions› founding partner Marek Domagala is pictured above.
The deal is pending regulatory approval.