Begbies Traynor Group has announced the acquisition of the entire issued share capital of Hargreaves Newberry Gyngell (HNG) in a £1m worth deal.
The acquisition was for an initial cash consideration of £400,000 on a cash free, debt free basis. Contingent cash consideration of up to £600,000 will reportedly become payable subject to the achievement of stretching financial targets in the two years following completion.
HNG is a London based firm of chartered surveyors employing 13 staff who will all integrate with Eddisons, the group’s property advisory and transactional services division.
The group stated its strategy is to increase the scale and quality of its businesses both organically and through value-accretive acquisitions, enabling increased shareholder value through the delivery of strong, sustainable financial performance.
Commenting on the acquisition, Anthony Spencer, director at Eddisons, said: “The acquisition significantly strengthens our property advisory capability in London and the South East, and we continue to seek opportunities for further growth there and across the UK.”
Since the creation of the division through the acquisition of Eddisons in December 2014, the company has built a “strong track record” of acquisitions that have met these criteria. This strategy has increased the scale of the division from annual revenue of £13m at inception to a current run rate of £22m.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “The acquisition of HNG 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.
“HNG has excellent relationships with a broad range of clients which have been developed over many years.”