LONDON: Begbies Traynor Group announced the acquisition of the entire issued share capital of Alexander Lawson Jacobs Limited (ALJ), a London-based insolvency and business recovery practice.
ALJ is a well-established firm and is ranked as a top 20 UK insolvency practice (by insolvency appointments). The team of 24 directors and employees will join the group and enhance our existing strong network of offices across London and the South-East.
The business has a strong recent record of financial performance; in the financial year ended 30 June 2019, ALJ reported annual revenue of £3.1 million and pre-tax profits of £0.9 million, when reported on the same basis as the group. It had gross assets (excluding cash) of £0.5 million as at 30 June 2019.
The acquisition is for an initial consideration of £2.35 million, to be satisfied by £2.1 million in cash from the group’s existing resources and through the issue of 296,195 new ordinary shares of 5 pence each in the group. The acquisition is on a cash free, debt free basis.
Under the terms of the acquisition, additional contingent consideration of up to £4.0 million will become payable subject to the achievement of financial targets for the business in the five year period directly following completion. Any additional consideration is calculated according to an agreed formula and is payable in cash. The maximum level of contingent consideration will only be available in the event of significant growth over the earn out period.
Ric Traynor, Executive Chairman of Begbies Traynor Group plc, commented: “I am very pleased to welcome the Alexander Lawson Jacobs team to the group. They are an experienced team with a strong recent growth record, which will enhance our existing strong network of offices across London and the South-East.
“This acquisition is in line with our strategy to increase the scale and market share of our market-leading insolvency practice.”
Edited by Kazim Rizvi