Begbies Traynor Group acquires corporate finance firm in £4.5m deal

Professional services consultancy Begbies Traynor Group plc has this morning (March 6) announced its acquisition of Springboard Corporate Finance Limited.

Manchester-based Begbies Traynor will fund the the deal, valued at £2.75m, with £1.375m in cash from existing resources and through the issue of new shares.

Under the terms of the transaction, an additional contingent consideration of up to £500k is payable subject to Springboard achieving certain financial targets in the next five years.

In total, Begbies Traynor could eventually pay £4.5m for the firm – a figure that comprises the £2.75m initial payment, the £500k contingent consideration and a further £1.25m subject to Springboard’s cash levels at completion.

Springboard is a mid-market corporate finance practice with offices in Birmingham, London and Nottingham. It completed 17 transactions last year with a combined value of £225m.

In the year to June 30 2017, the firm generated a pre-tax profit of £750k against revenues of £2.3m.

All 13 of the company’s employees and management will join Begbies Traynor following the acquisition.

Ric Traynor, Begbies Traynor Group plc executive chairman, said: “I am delighted to welcome the Springboard team to the group; they are a highly-regarded, mid-market corporate finance practice which is complementary to our existing advisory services.

“We look forward to supporting their expansion plans and their contribution to further growing the group’s revenue and profits.”

Commercial law firm Brabners advised Begbies Traynor Group on the deal.