Begbies Traynor boosts property arm

CORPORATE recovery specialist Begbies Traynor has made its first property services acquisition since it entered the market by buying surveying firm Eddisons in December 2014.  
 
The firm has acquired Rugby-based TBS&V, which trades as Taylors Business Surveyors and Valuers, for a maximum consideration of £1.85m.
The 20 strong team, including management, will be integrated with the existing Eddisons property services consultancy.
 
Taylors was established in 1992 and specialises in providing commercial business and property valuations for secured lending purposes on a nationwide basis, on behalf of a wide range of financial institutions, including all of the major High Street banks.
 
In the financial year ended 31 March 2015, Taylors reported annual revenue of £1.5m and pre-tax profits of £0.2m. It had gross assets of £0.6m as at 31 March 2015.

The acquisition is for an initial consideration of £1.1m, to be satisfied in cash of £0.5m, from existing resources and through the issue of 1,389,661 new ordinary shares of 5p. The deal is on a cash free, debt free basis.  

Under the terms of the deal, additional contingent consideration of up to £0.75m will become payable subject to the financial performance of the Taylors business over the five years from completion.  The acquisition is expected to be earnings enhancing, both initially and after any additional consideration is paid.
                                                                                    
Anthony Spencer, director of Eddisons, said: “The acquisition of Taylors will enhance our existing valuations department by adding further depth to our commercial business valuations capability and strengthening our combined offering to lenders.”
 
Ric Traynor, executive chairman of Begbies Traynor Group, said: “I am pleased to announce the first acquisition for Eddisons which, in line with our strategy to develop our property consultancy offering through organic investment and selective acquisitions, will enhance our existing capabilities and relationships.”

Corporate partner Caroline Litchfield from North West law firm Brabners acted for Begbies Traynor.