(Sharecast News) - Business recovery, financial advisory, and property services consultancy Begbies Traynor Group announced the completed acquisition of Andrew Forbes on Wednesday.
The AIM-traded firm said Andrew Forbes, founded in 1995, is a firm of chartered surveyors based in Bristol, employing a team of 18 professionals.
It said it primarily operates across the South West region, adding that following the acquisition, it would be integrated into its property division, Eddisons.
Andrew Forbes specialises in commercial valuation and building consultancy services, aligning with Begbies Traynor's existing service portfolio.
The board said the strategic move would further enhance the company's regional presence across the South West.
In the financial year ended 31 March, Andrew Forbes generated unaudited revenue of £1.7m and normalised pre-tax profits of £0.25m when reported on the same basis as the group.
Projections indicated that trading would continue at that level in the current financial year.
At the end of March, the company had net assets of £0.2m, including £0.3m in net cash.
The primary terms of the acquisition included an initial cash consideration of £0.5m and an earn-out provision of up to £0.5m, payable in cash and contingent on the maintenance of profits during the three years after completion.
As a result, the maximum consideration for the acquisition stood at £1m, based on a cash-free, debt-free basis.
The cash consideration would be funded using Begbies Traynor's existing financial resources, with significant headroom available for potential future acquisitions and investments.
"The acquisition of Andrew Forbes 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," said executive chairman Ric Traynor.
"The Andrew Forbes team is a long standing and successful business, and we are looking forward to working with them."
At 1118 GMT, shares in Begbies Traynor Group were up 1.57% at 125.44p.
Reporting by Josh White for Sharecast.com.
Begbies (BEG)