BEGBIES TRAYNOR has acquired Yorkshire based insolvency practice Broadbents Business Recovery Services in a deal worth up to £550k.
The acquisition is for an initial consideration of £200k, payable in cash on completion from the group’s existing resources. Under the terms of the acquisition, contingent consideration of up to £350k in cash is payable based on achieving revenue targets over the two years post completion, the specialist business recovery practice said.
Broadbents was established in 2010 and has offices in York and Hartlepool. In the financial year ended 31 March 2014, the firm reported revenues of £600k and pre-tax profits of £100k. Broadbents founder, David Broadbent, and his six staff will join the Begbies Traynor insolvency practice.
Ric Traynor, executive chairman of Begbies [pictured], said the acquisition “brings additional expertise and relationships to the group’s existing operations in the important Yorkshire and Northern region”.
Traynor said the firm is “well placed” to develop its business through selective acquisitions. In December, Begbies acquired Eddisons, a national firm of chartered surveyors, in a deal worth up to £8.5m. Trading in the post-acquisition period has been in line with expectations at the time of the acquisition, the firm said last month.