Credit, Collections & Insolvency News
Begbies Traynor has agreed to buy insolvency practice David Rubin & Partners, in a deal worth up to £25 million.
The company has announced that it has raised £22 million through equity fundraising to help pay for its acquisition of London and Guernsey-based David Rubin & Partners.
David Rubin & Partners has a team of 72 partners and staff, all of which will join Begbies following the acquisition.
Begbies Traynor will pay an initial £12 million for David Rubin & Partners, and then over a period of up to five years it will pay additional cash payments of up to £13 million, subject to the financial performance of the acquired business.
The deal represents Begbies Traynor’s biggest acquisition to date, and continues the firm’s recent acquisitive spree, which has seen it buy two firms already this year. In January it bought CVR Global in a deal worth £20.8m, and then the following month it bought chartered surveyors Hargreaves Newberry Gyngell (HNG), in a £1 million deal.
David Ruben & Partners has offices in London and Guernsey.
Begbies Traynor said the deal will significantly increase its business recovery and financial advisory business, as well as grow its size in London.
Ric Traynor, Executive Chairman of Begbies Traynor Group said “We are delighted that both existing and many new investors participated in the fundraise, which was significantly oversubscribed. Our recent acquisitions and organic investments position us well to deliver material growth in our 2021-22 financial year.”
“This acquisition is our largest to date and is expected to be immediately earnings enhancing. It leaves the group well-positioned to increase its market share and continue to grow its business recovery and financial advisory revenues.”