Begbies Traynor has announced that it has completed the acquisition of Cvr Global for £20.8m on a cash free and debt free basis.
Cvr is an independent firm of insolvency practitioners, forensic accountants and experts in other related complementary disciplines with specialisms in restructuring, financial distress, fraud and asset recovery, business disputes, and pension covenant reviews.
The team of 90 partners and employees will all join the group’s existing network of offices and teams across London and the south of England. The Cvr team will operate as Begbies Traynor and BTG Advisory moving forward.
Begbies Traynor said there would be a “significant overlap” of operating locations, which will enable the group to combine local operating teams in single offices and “derive operating synergies”, which are expected to be worth at least £0.75m per annum when fully realised.
The acquisition reportedly falls in line with the company’s strategy, as Cvr adds both scale and specialisms to “enhance” the group’s business recovery and financial advisory practice, both regionally and overseas.
Mark Fry, head of business recovery and advisory at Begbies Traynor, said: “The acquisition of Cvr significantly increases the scale and specialisms of our business recovery and financial advisory business across London and the South of England, whilst enhancing our overseas capabilities.
“The Cvr team has a similar style and culture to our own and will be a highly complementary fit with our business. We welcome the team into the group and look forward to working with them.”
Ric Traynor, executive chairman at Begbies Traynor, commented that the acquisition was the largest insolvency acquisition to date and is expected to be immediately “earnings enhancing”.
He said: “The increase in scale and capabilities leaves the group well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues. The group continues to consider further acquisition opportunities and organic investments in both of its divisions, in line with our stated strategy.”