02:00 Mon 18 Jan 2021
Begbies Traynor - Acquisition
Begbies Traynor Group plc
Acquisition
"A significant expansion of the group's scale and specialisms
in business recovery and financial advisory"
Begbies Traynor Group plc (the "group"), the business recovery, financial advisory and property services consultancy, today announces that it has completed the acquisition of CVR Global LLP ("CVR").
Highlights of the acquisition
· Maximum potential consideration of
· Represents the largest insolvency acquisition the group has undertaken to date
· Delivers a significant expansion of the group's scale in
· Enhances the group's existing specialisms in business recovery and financial advisory
· Adds first overseas offices, enhancing the offering provided by BTG Global Advisory
· In line with strategy to target value-accretive acquisitions and is expected to be immediately earnings enhancing
About CVR
CVR is a leading independent firm of insolvency practitioners, forensic accountants and experts in other related complementary disciplines. The firm's specialisms include restructuring, financial distress, fraud and asset recovery, business disputes, and pension covenant reviews.
The business operates from seven
The team of 90 partners and employees will all join the group and enhance our existing strong network of offices and teams across
There is a significant overlap of operating locations, which will enable the group to combine local operating teams in single offices and derive operating synergies, which are expected to be worth at least
The CVR specialisms are expected to enhance the group's offering and include:
· Significant insolvency expertise with cases largely sourced from professional intermediaries.
· A strong contentious insolvency practice which will complement the group's existing practice.
· Forensic accounting, expert witness and pensions advisory services which will develop our BTG Advisory service line.
· Established operations in offshore locations which will enhance the offering provided by BTG Global Advisory.
The business has a strong record of financial performance based on the development of the specialisms noted above and an increasing and profitable caseload. In the financial year ended
Reasons for and benefits of the acquisition
The group's strategy is to increase the scale and quality of its businesses both organically and through value-accretive acquisitions, enabling increased shareholder value through the delivery of strong, sustainable financial performance.
Our strategy in business recovery and financial advisory has been to increase market share and add complementary service offerings, whilst increasing the average case size and complexity of the caseload. The group has a long-standing track record of making successful acquisitions that have met these criteria.
This strategy has delivered a steady increase in the group's market share of new insolvency appointments, reaching a record high at the half year ended
The acquisition is in line with our strategy, as CVR adds both scale and specialisms to enhance the group's business recovery and financial advisory practice, both regionally and overseas. It is expected to be immediately earnings enhancing.
Principal terms of the acquisition
The acquisition is for a maximum potential consideration of
· Initial cash consideration of
· Contingent cash consideration of up to
· Earn out of up to
At
"The acquisition of CVR significantly increases the scale and specialisms of our business recovery and financial advisory business across
"We welcome the team into the group and look forward to working with them."
"The acquisition of CVR is our largest insolvency acquisition to date and is expected to be immediately earnings enhancing. The increase in scale and capabilities leaves the group
well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues.
"The group continues to consider further acquisition opportunities and organic investments in both of its divisions, in line with our stated strategy."
Enquiries please contact:
Begbies Traynor Group plc 0161 837 1700
Ric Traynor - Executive Chairman
Nick Taylor - Group Finance Director
Canaccord Genuity Limited 020 7523 8350
(Nominated Adviser and Joint Broker)
Emma Gabriel / Angelos Vlatakis
Shore Capital 020 7408 4090
(Joint Broker)
Mark Percy / Anita Ghanekar
MHP Communications 020 3128 8168
Reg Hoare / Katie Hunt / Florence Mayo begbies@mhpc.com
Information on Begbies Traynor Group can be accessed via the Group's website at
www.begbies-traynorgroup.com/investor-relations
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