Business
Acquisition of Birkett Long
Acquisition of Birkett Long.
About this update from Knights Group Holdings Plc
[{"type":"text","content":"\n\nKnights Group Holdings plc\n(\"Knights\" or the \"Group\")\nAcquisition of Birkett Long LLP and Birkett Long IFA LLP\nFurther bolstering scale in the attractive South East market\nExpansion into wealth advisory services\nKnights today announces that it has agreed to acquire Birkett Long LLP and Birkett Long IFA LLP (collectively trading as \"Birkett Long\"), a premium service regional law firm and independent financial advisory business based in three locations across Essex, in line with Knights' continuing growth strategy.\nAcquisition rationale and background\nBirkett Long LLP, (\"the law firm\"), a high-quality mid-market regional law firm which can trace its roots back 200 years, has developed a leading position in Essex over the last 20 years. It brings a team of 91 fee earning professionals delivering premium legal services, with an equal split between service lines for business and private clients. Birkett Long IFA LLP, a separate legal entity (\"the IFA\") which has been established for 30 years, brings a team of 15. Together, they provide the relatively rare ability to offer both legal and wealth advisory services under one roof, and an entry point into financial advisory, which Knights has long considered a complementary service line and growth opportunity.\nIn the year ended 31 May 2024, Birkett Long generated revenues of £14.7m, and corporatised PBT of £1m. Following the acquisition, post integration and full realisation of synergies, Knights expects the business to operate at a low double digit PBT margin. The acquisition is expected to be immediately earnings enhancing and will take Knights' annualised revenue to over £200m. \nBirkett Long's three locations in Colchester, Chelmsford and Basildon will allow Knights to add further scale in the South East, and expand its presence in a relatively affluent area of the country, offering existing clients a wider range of services supported by the strength and resources of Knights' well-invested central infrastructure. \nThe business is a strong fit culturally and operationally, given its similar private client, real estate and business service lines, giving confidence in a smooth integration.\nTerms of the acquisition\nUnder the terms of the acquisition, Knights will acquire the business from the equity partners for a total consideration of £16.6m, subject t...