Business
Acquisition of Springboard Corporate Finance
Acquisition of Springboard Corporate Finance.
About this update from Btg Consulting Plc
[{"type":"text","content":"\n \nRNS Number : 7646G Begbies Traynor Group PLC 06 March 2018 \n\n6 March 2018\n \nBegbies Traynor Group plc\n \nAcquisition of Springboard Corporate Finance Limited\n \nBegbies Traynor Group plc (the \"Group\") today announces the acquisition of the entire issued share capital of Springboard Corporate Finance Limited.\n \nSpringboard are a highly regarded, mid-market corporate finance practice, operating from offices in Birmingham, London and Nottingham. The practice has strong relationships with owner-managers, management teams and private equity firms, acting across a broad range of buy and sell side private company transactions. The business has delivered excellent growth in recent years and in 2017 completed 17 transactions with a total value in excess of £225 million. \n \nThe existing team of thirteen employees and management will join the Group on acquisition. The management team, who have all committed to remain with the business, will be responsible for the ongoing management and development of the Group's corporate finance services. \n \nThis acquisition is in line with the Group's strategy to develop its advisory services and provides an excellent platform for organic and acquisitive growth when combined with the Group's existing advisory teams in London and Manchester. \n \nIn its financial year ended 30 June 2017, Springboard posted annual revenue of £2.3 million and pre-tax profits of £0.75 million when reported on the same basis as the Group. It had gross assets of £1.1 million as at 30 June 2017.\n \nPrincipal terms of the acquisition\n \nThe acquisition is for an initial net consideration of £2.75 million (on a cash free, debt free basis), to be satisfied by £1.375 million in cash from the Group's existing resources and through the issue of 1,884,568 new ordinary shares of 5 pence each in the Group (\"Ordinary Shares\"). \n \nUnder the terms of the acquisition, additional contingent consideration of up to £0.5 million will become payable subject to the achievement of financial targets in the five-year period directly following completion. The contingent consideration is calculated according to an agreed formula and is payable in cash. \n \nGross potential consideration of £4.5 million comprises the £2.75 million initial net co...