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.
“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.