H&R Block Inc has announced plans to sell its RSM McGladrey unit. The consulting unit is going to McGladrey & Pullen LLP for $610 million. The unit has over 5,000 employees. H&R Block Inc acquired RSM McGladrey in 1999 to help them expand beyond their core business of tax preparation. However, they were not able to make the profit they expected from the unit. The return on RSM McGladrey's was only 9.3 percent while their return on tax preparation was 27.1 percent.
Wednesday, August 24, 2011