Begbies Traynor Group plc has completed the acquisition of Budworth Hardcastle Ltd, a firm of chartered surveyors employing 18 staff in offices in Northampton, Kettering and Peterborough, for a maximum consideration of £2.4m, on a cash free debt free basis.
The business will integrate with Eddisons, the group’s property division, which has existing regional offices in Bury St Edmunds, Huntingdon, Northampton and Peterborough.
The acquisition has an initial consideration of £900k, payable £600k in cash and through the issue of 206,937 new ordinary shares, and a contingent cash consideration of up to £900k, subject to maintaining financial performance in the three year period post completion.
Additionally, the acquisition includes a maximum cash earn out of £600k, subject to meeting growth targets over the five year period post completion.
The Budworth Hardcastle team will strengthen Eddisons’ existing offering and footprint in Eastern England, and follows the recent acquisitions of Daniells Harrison (January 2022) and Fernie Greaves (October 2021) which augmented Begbies Traynor’s south coast and Yorkshire presences.
The Budworth Hardcastle team provides valuation, commercial property agency and building consultancy services to a range of regional clients, which aligns with the group’s current service offering and reportedly strengthens Begbies’ regional presence.
Budworth Hardcastle generated revenues of £1.8m and pre-tax profits of £0.4m in its financial year ended 31 August 2021, and trading has been maintained at these levels in the current financial year to date.
Since the creation of the firm’s property division through the acquisition of Eddisons in December 2014, Begbies’ acquisition strategy has increased the scale of the division from annual revenues of c£13m at inception to a current run rate of c£30m.
Ric Traynor, executive chairman of Begbies Traynor Group plc, said: “The acquisition of Budworth Hardcastle 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.
“Budworth Hardcastle has excellent relationships with a broad range of clients which have been developed over many years and we are very much looking forward to working with them.”
Anthony Spencer, director at Eddisons, added: “I am very pleased to welcome the Budworth Hardcastle team to Eddisons, which extends our footprint in Eastern England. They are a highly experienced team with a proven track record in delivering high quality professional advice. We continue to seek further opportunities for expansion across the UK.”