Independent business recovery firm Begbies Traynpr Group plc has today (2 October) announced the completion of its acquisition of the trade and assets of Manchester-based rival Cooper Williamson Ltd.
The deal to acquire Cooper Williamson was completed for an initial consideration of £0.9m, although this could rise to £2.5m dependant on financial performance.
Ric Traynor, executive chairman of Begbies Traynor, said the acquisition was an exciting development.
He explained: “The acquisition of Cooper Williamson is in line with our strategy to enhance our position as the UK’s leading independent insolvency practice.
“It will reinforce our presence in the North West and give us the opportunity to expand Cooper Williamson’s already successful model and business rescue internet portal on a national scale.”
In the year to 31 May 2013, Cooper Williamson reported revenue of £1.7 million and a pre-tax profit of £0.4 million.
The acquisition comprises £450,000 in cash and £450,000 in new ordinary 5p shares in Begbies Traynor Group.
There is also a deferred consideration of up to £1.1m dependent on the financial performance over the three years from completion, which may be satisfied in cash or by issuing new shares.
Begbies Traynor has also agreed to further discretionary consideration of up to £500,000, subject to the firm meeting “robust turnover targets” in the following two years.
Following the completion of the acquisition, Cooper Williamson’s management and client caseload will transfer to Begbies Traynor’s Manchester office.