Impact Holdings scraps Medical Legal deal
DARESBURY-based Impact Holdings has pulled the plug on its planned £1m acquisition of Liverpool-based Medical Legal Appointments.
AIM-listed Impact announced in September that it had signed heads of agreement terms to acquire MLA and its parent company DACH Limited for a cash and shares deal worth £1m. In the year to the end of March DACH generated a post-tax profit of £165k on turnover of £4.7m.
In a brief statement the group said it had had second thoughts as a result of uncertainty over the person injury market.
It said: “Due to the recent announcements regarding the fixed cost regime in the personal injury market and the uncertainty this creates, it would be in the best interest of both parties to cease any further negotiations at the present time.”
“The company continues to pursue other avenues as part of its strategic realignment to become a provider of services to the legal and professional sectors.”
Impact is a niche funding provider, offering short term finance solutions to the legal market and also to the property sector.
The company is led by Paul Davies, the former deputy chief executive of Manchester Building Society, who has led a turnaround plan which has returned the business to profit.