Begbies Traynor expands UK footprint with latest acquisition
Begbies Traynor has continued its acquisitions trail following its latest deal in Northamptonshire.
The listed professional services firm has bought Budworth Hardcastle, a firm of chartered surveyors employing 18 staff in offices in Northampton, Kettering and Peterborough.
Begbies Traynor will pay a maximum consideration of £2.4m (on a cash free debt free basis).
This includes an initial consideration of £900,000 made up of £600,000 in cash and through the issue of 206,937 new ordinary shares.
A contingent cash consideration of up to £900,000 is subject to maintaining financial performance in the three-year period post completion.
In addition, the acquisition includes a maximum cash earn out of £600,000 subject to meeting growth targets over the five-year period post completion.
The business will integrate with Eddisons, the group’s property division, which has existing regional offices in Bury St Edmunds, Huntingdon, Northampton and Peterborough, strengthening its presence in Eastern England.
The Budworth Hardcastle team provide valuation, commercial property agency and building consultancy services to a wide range of regional clients, which aligns with the group’s current service offering and strengthens our regional presence.
In its financial year ended 31 August 2021, the firm generated revenues of £1.8m (unaudited) and normalised pre-tax profits of £400,000.
Ric Traynor, executive chairman of Begbies Traynor, said: “The acquisition of Budworth Hardcastle is in line with our strategy to develop our property advisory and transactional services division, by increasing both its scale and market position, as well as the scope of its service offering and geographical coverage.
“Budworth Hardcastle has excellent relationships with a broad range of clients which have been developed over many years and we are very much looking forward to working with them.”
The latest deal follows the recent acquisitions of Daniells Harrison (January 2022) and Fernie Greaves (October 2021) which strengthened its south coast and Yorkshire footprint.