Companies

FRP Advisory acquires Spectrum Corporate Finance

The deal comprises a £9.4m cash consideration and a potential £3m payment contingent on net assets at completion

FRP Advisory, the professional services firm specialising in advisory services, has announced the acquisition of corporate finance and debt advisory boutique, Spectrum Corporate Finance.

The deal comprises £9.4m in a cash consideration as well as a further £3m payment dependent on net assets at completion.

Moreover, the five key selling shareholders have entered a subscription agreement to reinvest £3.76m into new ordinary shares to be issued by FRP.

Geoff Rowley, CEO at FRP, said: “Spectrum is another excellent addition to FRP, in line with our strategy to complement our organic growth with high quality selective acquisitions.

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“This highly complementary combination will give us a key position in the UK mid-cap transactional advisory market; it will enable FRP to continue supporting clients post Covid-19, in addressing both their strategic ambitions and being available to help as challenges arise.”

Founded in 2010, Spectrum operated over unaudited revenues of £4m in the year ended September 2020, down from £6.4m in the previous year.

The group’s entire team, comprising seven partners, 12 other fee earners, four research members and four support staff, will join FRP as a part of the deal.

Simon Davies, co-founder at Spectrum, said that a “new chapter” now begins at the firm following ten years of individual growth.

He added: “We are looking forward to continuing to grow our corporate finance and debt advisory businesses nationally, as a combined group.”

The cash proceeds for the deal have been partly raised via the doubling of FRP’s revolving credit facility to £10m.

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