Begbies Traynor has acquired Axiom Consulting and Investments Limited and Ellayaan Limited, which together trade as Mantra, a London-based property finance brokerage, for £18m.
The firm said the deal provided a potential earn out of up to an additional £13.5m, subject to delivering material growth in profits over the four years post completion. The acquisition is reportedly expected to be “immediately earnings enhancing” however, according to the group.
Following the move, Mantra will join with MAF Finance Group, which was acquired in May 2021, to form a national finance brokerage with complementary sector expertise.
Mantra is an FCA-regulated finance and insurance brokerage based in London. The team is said to have “significant” expertise across both commercial and residential real estate lending, providing property investment and development finance, finance for trading businesses and residential mortgages. In addition, they provide insurance brokerage services to their commercial clients.
Begbies Traynor said Mantra’s team of 23 employees, including two directors, joining the group have “extensive” banking experience and will “enhance” its financial advisory services. The business reportedly has a strong relationship with a large panel of banks and specialist funders and raised finance in excess of £500m for its clients over the last year.
In its financial year ended 31 December 2021, Mantra hit revenues of £4.2m and normalised pre-tax profits of £1.2m, with net assets of £2.6m as at 31 December 2021.
Mantra together with MAF Finance Group will form BTG Funding Solutions, a finance brokerage with expertise across a wide range of sectors, including real estate, construction, engineering and manufacturing, haulage, healthcare, agriculture, renewables and vehicles.
The combined BTG Funding Solutions team will aim to continue its “strong record” of growth through the recruitment of experienced employees. It will market its services directly to the corporate community and also through the group’s existing, extensive referral network of accountants and other professionals.
Ric Traynor, executive chairman of Begbies Traynor Group, said: “The acquisition of Mantra is in line with our growth strategy to complement and expand our services and regional coverage, whilst enabling us to form a national finance business serving a wide range of sectors.
“We believe access to finance will be critical as the economy addresses its current challenges. BTG Funding Solutions will be a major addition to the support and advice we can provide, whilst enhancing our long-term organic growth prospects.”